Page 21 - Insurance Times March 2017 Sample

1) Until delivery of the goods to the final warehouse at c) Entry of sea, lake or river water into vessel, craft or
the destination named in the policy or hold, conveyance, container, lift van or place of storage
2) In respect of transit by rail only or rail & road, until d) Total loss of any package lost overboard or dropped
expiry of 7 days after arrival of railway wagon at the whilst loading onto or unloading from vessel or craft.
final destination railway station or
In addition to this there are some extraneous risks which
3) In respect of transit by road only, until expiry of 7 days can be covered under ICC-B on payment of additional
after arrival of the vehicle at the destination town
premium e.g. risks of
named in the policy whichever shall occur first.
j) Theft, pilferage, non-delivery
Registered Postal Sendings: ii) Fresh water & rainwater damage
iii) Breakage
Sometimes goods are sent through Post office from one
place to other place through registered parcels. In such iv) Leakage
cases risks can be covered by attaching Registered Post v) Hook and oil damage etc.
Parcel clause. The risk is covered from the time of insurance
of RPP receipt by the concerned post office and the risk Institute Cargo Clause -A
terminates on deliver of the parcel to the addressee. Just like other ICC clauses, this clause is also used only for
export / import of goods via sea. This clause offers the
Institute Cargo Clause - C widest cover like IT (A). All types of damages are covered

In case of export / import of goods by sea, Institute cargo except general exclusions.
clause are issued. Institute cargo clause C offers the
minimum cover for export import of goods by sea. Out of the 7 exclusions mentioned under General Exclusions,
only one exclusion i.e. 46 which deals with the insolvency /
This clause covers the following risks: Financial default, can be deleted on payment of additional
1) Fire or explosion premium.
2) Vessel / craft being stranded / grounded / sink or Duration of cover: Unlike difference between IT(C) and IT
capsized.
(B) or IT (A), the duration of risks under ICC A, B, C is same.
3) Overturning / derailment of the land conveyance The duration clause describes the time of commencement
of risk and time of expiry (termination) of risk under the
4) Collision or contact of vessel craft / conveyance with
any external object other than water marine policy. The clause is also known as warehouse to
warehouse clause and its meaning would be evident from
5) Discharge of cargo at the post of distress following wording:
6) General average sacrifice
'The cover commences from the time the goods leave the
7) Jettison. warehouse at the place named in the policy, continues
during the ordinary course of transit and terminates either
It may be noted that just like IT (C) clause, ICC - (C) clause / or the following:-
covers the minimum risk but IT (C) clause is used for inland a) On delivery to the consignees or other final warehouse
transit only whereas ICC (C) is used for export / import at the destination mentioned in the policy.
policies.
b) On deliver to any intermediate warehouse used by the
insured for the purpose of storage or distribution or
Institute Cargo Clause (B)
c) On the expiry of 60 days after discharge from the vessel
ICC-B cover is wider than ICC-C, i.e. ICC-B covers more risks
at the final port of discharge whichever shall occur first.
than ICC-C. In other words ICC-B covers the risks mentioned
in ICC-C plus the following: In other words the cover is valid for maximum period of 60

das and inland transit if any should be completed within this
Physical loss / damage caused by: time limit. The time limit of 60 days can be extended on
a) Earthquake, volcanic eruption or lighting payment of additional premium provided request for
b) Washing overboard extension is received before expiry of 60 days.
The Insurance Times, March 2017 21

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