Answer
- It is a part of marine cargo inrnce that protects the cargo in transit
- It is a standard set of clauses that define the scope of coverage for cargo & specifies what risks of loss or damage to the cargo are covered & what exclusions apply.
- Three types of clauses
a.ICC Clause A (All risks) – provides broadest coverage. All risks of physical loss or damage. Covers all named & unnamed perils. Suitable for fragile, high value or perishable guds.
Exclusions – willful misconduct, wear & tear or loss in vol./weight, Delay even if caused by insured peril, Nuclear damage, nature or inherent vice of property insured
b.ICC Clause B (named perils) – Fire, explosion, vessel capsized sunk grnded stranded, collision of vessel with an extrnl part from watr, Discharge of cargo at port of distress, lightening earthquake, G.A
sacrifice, entry of river lake or sea watr into place of storage, Total loss of any package dropped while Ioadng/unloading to or from the vessel or lost ovbd
Exclusions – as in Clause A, additionally Delibearte damage can be covered by agreement & on paying extra premium
c.ICC Clause C (basic risks) – fire, explosion, vessel grndng, sinking, collsn, jettsn, discharge of cargo at port of refuge, G.A sacrifice
Exclusions – Entry of sea rivr or lake watr in vessel/ container, lightening, earthquake, total loss of package lost ovbd while Ioadng/ discharging.
- Various riks may also be covered in B & C subject to additional terms & premium.