Cargo Insurance



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Cargo Insurance covers loss and/or damage of cargo while it is in transit between the points of origin and final destination. Goods may be transported by sea, air or land.

Differences Between Institute Cargo Clauses (A) and Institute Cargo Clauses (C):

• Institute Cargo Clauses (C) covers very limited risks as a result it is called as a minimum cover cargo insurance policy. 
• Institute Cargo Clauses (A) covers wide range of risks as a result it is called as a "All Risks" cargo insurance policy. 
• Insurance premium, which should be paid to the insurance company in order to get the insurance policy issued, would be substantially different between these two covers types. 
• Institute Cargo Clauses (C) is the cargo insurance policy type which is requested by the Incoterms 2010 rules




FULL COVERAGE - Institute Cargo Clauses (A):

Institute Cargo Clauses (A) covers maximum risks as a result it is also known as All Risks cargo insurance policy.

Insurance Cargo Clauses (A) covers all the risks of loss of or damage to the goods except following conditions:
Risks that have been caused by following reasons will not be covered under Insurance Cargo Clauses (A)
All risks cargo insurance policy will not be covering loss or damages arising from the following reasons: See General Exclusion Clauses




MINIMUM COVER - Institute Cargo Clauses (C):

Institute Cargo Clauses (C) covers very limited risks most of them which must be happen during the carriage in forms of accidents.

Loss of or damage to the subject-matter insured reasonably attributable to:
• fire or explosion 
• vessel or craft being stranded, grounded, sunk or capsized 
• overturning or derailment of land conveyance 
• collision or contact of vessel craft or conveyance with any external object other than water 
• discharge of cargo at a port of distress
Loss of or damage to the subject-matter insured caused by:
general average sacrifice 
jettison