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The Institute Cargo Clauses (ICC) are standardized clauses for marine insurance, offering different levels of coverage: ICC(A), ICC(B), and ICC(C). Here's a breakdown of their differences with examples:

1. ICC(A): "All Risks" Coverage

Coverage: This is the most comprehensive policy, covering all risks of loss or damage to the insured goods, except for specified exclusions like war, willful misconduct, or delay.

Example: A shipment of electronics is covered for theft, fire, capsizing of the ship, or even accidental damage during loading/unloading. If the goods are stolen during transit, ICC(A) will compensate for the loss.

2. ICC(B): "Wider Named Perils" Coverage

Coverage: This covers fewer risks than ICC(A) but includes perils such as fire, explosion, vessel sinking or capsizing, collision, discharge at a port of distress, and certain weather-related damages.

Example: A shipment of textiles insured under ICC(B) is damaged due to the ship sinking in a storm. The policy will cover the loss. However, if the textiles are stolen or mishandled during unloading, ICC(B) will not cover it.

3. ICC(C): "Basic Named Perils" Coverage.

Coverage: This offers the most limited protection, covering only major incidents like fire, explosion, vessel sinking, collision, and overturning during land transit. It does not cover partial or accidental losses like theft or handling damage.

Ex: A consignment of machinery insured under ICC(C) is damaged when the ship sinks in a collision. The loss will be covered. However, if the machinery is damaged due to heavy rain during loading, it will not be compensated.

Hope it is clear. Happy Learning

By Kanchan Tiwari

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