Institute Cargo Clauses (A/B/C)
The Institute Cargo Clauses are the London market's standard wordings for marine cargo insurance, offering tiered levels of cover from comprehensive (A) through named perils (B) to basic cover (C).
- Clause type
- Definition
- Origin/Market
- London Market (LMA/NMA/Lloyd’s)
- Favours
- Neutral
- Negotiability
- Market standard
Standard wordings
- Institute Cargo Clauses (A) 2009
- Institute Cargo Clauses (B) 2009
- Institute Cargo Clauses (C) 2009
Purpose
The Institute Cargo Clauses (ICC), last revised in 2009 and issued by the Joint Cargo Committee of the London market, are the most widely used standard wordings worldwide for insuring goods in transit. They comprise three tiered variants: ICC (A) provides comprehensive “all risks” cover subject to named exclusions, while ICC (B) and ICC (C) restrict cover to progressively narrower, expressly listed perils, with (C) representing the lowest level of cover.
Effect and limits
As no dedicated marine cargo coverage currently exists in the register, cov-yachtversicherung is referenced here as the nearest available object, even though the ICC were originally developed for commercial goods transported by sea, land and air. All three variants share common exclusions for wilful misconduct, ordinary wear and tear, inadequate packing, and war or strikes risks, which must be separately added back through the Institute War Clauses or Institute Strikes Clauses.
Negotiation and practice
When choosing between the three variants, the relationship between premium and scope of cover should be assessed: ICC (A) is advisable for high-value or fragile goods, whereas ICC (C) may suffice for robust bulk cargo with lower transit risk. Because the clauses are copyrighted London market wordings, the current Institute Clauses text should always be consulted in any specific case rather than relying on a paraphrase.