Institute cargo clauses

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Institute cargo clauses
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Institute Cargo Clauses (ICC) were adopted in 1982 at the Institute of London Underwrites. Institute Cargo Clauses are three levels of insurance protection [1]:

  • Institute Cargo Clauses A,
  • Institute Cargo Clauses B,
  • Institute Cargo Clauses C.

Institute clauses are used all over the world. They standardized marine insurance contract terms for: duration, the risk derdized, exclusions, benefit of insurance, claims, avoidance of delay, minimizing losses, and law and practice [2].

Clauses were updated in 2008 by Joint Cargo Committee which includes of members the Lloyds Market Association and International Underwriting Association in 2008 and implemented from 2009 [3].

The new Institut Cargo Clauses are inaccurate replacements Historic Cargo Clauses [4]:

  • Institute Cargo Clauses A = All Risks (A.R)
  • Institute Cargo Clauses B = Witch Average (W.A)
  • Institute Cargo Clauses C = Free of Particular Average (F.P.A)

All Risk

A wide insurance coverage of cargo including coverage due extemal clauses such as collision, fire, pilferage, breakage etc., but doesn't include threats resulting from warfare [5].

Witch Average

A wide insurance coverage that provides protection against partial damage by sea perils, if the partial damage degree 3% or more of the total value of the shipment. When the vessel has sunk, stranded, in collision or been on fire, the parcentage rule is waived and the loss of maritime hazards can be recovered in its entirety [6].

Free of Particular Average

Basic insurance to cover partial losses that arise from dangers related to the sea, excluding total losses, but only in the event that the carrying vessel has sunk, been in collision, been on fire, burnt, stranded [7].

Institute Cargo Clauses A, B, C

Institute Cargo Clauses A refer of all risks of loss of damage to the subject of insurance. In the case of Institute Cargo Clauses B and C, their scope covers only those risks that are specifically identified. Institute Cargo Clauses A, B and C contain in themselves [8]:

The Institute Cargo Clauses A doesn't provide insurance coverage at the time ordinary wear and tear and willful misconduct of the insured [9].


  1. Hinkelman E.G, 2008, p.306
  2. Hinkelman E.G, 2008, p.306
  3. Lee E.S, 2012 ,p.231
  4. Hinkelman E.G, 2008, p.306
  5. Hinkelman E.G, 2008, p.306
  6. Hinkelman E.G, 2008, p.306
  7. Hinkelman E.G, 2008, p.306
  8. Kouladis N., 2006, p.248
  9. Lee E.S, 2012 ,p.231


Author: Anna Lipowiecka-Migdał