Institute Cargo Clauses (ICC A, B, C)
The Institute Cargo Clauses are the London market's standard wordings for cargo policies, with the 2009 edition the most widely used. Clauses (A) give the broadest cover on an all-risks basis with exclusions; (B) and (C) cover named perils only, with (C) the narrowest. Under Incoterms 2020, CIP requires cover at (A) level, while CIF still needs only minimum (C). War and strikes are usually added through separate clauses.
Related terms
- All Risks Cover
All risks is a cargo cover against all physical loss or damage from external causes except those expressly excluded, normally based on Institute Cargo Clauses (A).
- Cargo Insurance (Marine Cargo Insurance)
Cargo insurance protects the cargo owner against loss of or damage to goods during sea, air or land transport.
- CIP (Carriage and Insurance Paid To)
CIP works like CPT, but the seller must also insure the cargo for the buyer.
- CIF (Cost, Insurance and Freight)
CIF works like CFR, but the seller must also take out cargo insurance for the buyer, at least at Institute Cargo Clauses (C) level and for at least 110% of the contract value.
- Insured Value
Insured value is the amount agreed in the policy as the basis for indemnity.