Marine Insurance Institute Cargo Clauses A, B and C

Any contract where the shipper pays for the marine insurance, under CIP or CIF for example, needs to consider what type of insurance cover they are paying for and to ensure it provides the cover that the contract requires. It is good business practice, when stating that insurance is included, to actually state the Institute Cargo Clauses that are being quoted.

Institute Cargo Clause C covers loss or damage due to
Fire and Explosion, Stranding, Sinking, Capsizing, Overturning of a Lorry or train, collision, discharge at a port of distress, total loss of vehicle, general average sacrifice and jettison.

Institute Cargo Clause B covers loss or damage as per Cargo Clause C plus
Washing Overboard, Sea, Lake, River, Water damage and Total Loss of package during loading/unloading

Institute Cargo Clause A covers loss or damage as per Cargo Clause B plus
Rainwater damage, malicious damage, breakage, partial loss, shortage, pilerage and theft.

What is NOT covered by any of these Institute Cargo clauses is
Wilful misconduct of the Assured, Ordinary leakage/loss in weight, unsuitable packing, inherent vice, delay, insolvency/financial default, unseaworthiness/unfitness of craft, vessel or container, war capture seizure and problems relating to strikes, riots and terrorism.

With the last two it is possible to cover these potential losses by taking out Institute War Clauses to cover war capture seizure and Institute Strikes Clauses for problems relating to strikes (it is important to talk to the broker to see if this covers riots and terrorist attacks as well).

Maria Narancic from Point to Point Export Services is an independent international trade adviser who assists organisations world wide with their international trade projects, documentation, Documentary Credits and import/export training.  She is based in the United Kingdom.  If you require any further assistance with the matters mentioned above, please do contact us by e-mail on or check out other international trade articles on the Point to Point Export Services website at

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