Institute Cargo Clause c explained by Marine insurance agents india
Institute Cargo Clause c explained by Marine insurance agents india

Institute Cargo Clauses C (ICC C) is the most basic named-perils marine insurance policy, covering cargo only against major casualty risks — fire, explosion, vessel sinking, collision, and general average — while excluding weather damage, theft, and handling losses, making it the lowest-cost, minimum-coverage option for Indian exporters shipping low-value, non-fragile bulk commodities.

What ICC C Covers

  1. Fire or Explosion – Loss/damage from fire or explosion aboard the vessel or during storage.

  2. Vessel/Craft Stranded, Grounded, Sunk, or Capsized – Physical loss from major vessel casualties.

  3. Overturning or Derailment of Land Conveyance – Covers road/rail transit accidents.

  4. Collision – Vessel or conveyance colliding with any external object.

  5. Discharge of Cargo at Port of Distress – Loss during emergency unloading.

  6. General Average Sacrifice – Contribution toward loss when cargo is deliberately sacrificed to save the voyage.

  7. Jettison – Cargo thrown overboard to save the vessel.

What ICC C Excludes

  • Theft, pilferage, or non-delivery

  • Earthquake, volcanic eruption, or lightning

  • Washing overboard

  • Entry of sea, lake, or river water

  • Total loss of package overboard/during loading or unloading

  • Willful misconduct of the insured

  • Ordinary leakage, wear and tear

  • Inadequate packing

  • Delay-related losses

  • War, strikes, riots, and civil commotion (require separate add-on cover)

Key Difference: ICC C vs ICC B - ICC C excludes several risks that ICC B includes — notably natural catastrophes (earthquake, lightning), water ingress, washing overboard, and total loss of package during loading/unloading. ICC C is essentially ICC B minus these additional perils.

Who Should Choose ICC C - Exporters shipping high-bulk, low-value, non-fragile commodities (e.g., raw minerals, scrap, certain agri-bulk cargo) where the primary concern is catastrophic total loss rather than partial damage — and where premium cost savings matter more than broad protection. For most general cargo, ICC B or ICC A is recommended for adequate protection.