Page 417 - IC38 GENERAL INSURANCE

iii. Institute Cargo (Air) Clause – A for transport by air

Institute Cargo Clause C grants the minimum cover, which is loss or damage
due to accident to the vehicle or vessel carrying the cargo due to:

i. Fire or explosion
ii. Derailment or overturning of the vehicle
iii. Stranding, grounding or sinking of the vessel (in case of ship)
iv. Collision with an external object

Institute Cargo Clause B is wider than C. Apart from the perils covered in C
it also covers loss or damage due to:

i. Act of God (AOG) perils like earthquake, volcanic eruption and lightning
ii. Collapse of bridges in Inland transit
iii. Washing overboard and sling loss in case of ocean transit
iv. Entry of water into the vessel.

Institute Cargo Clause A is the widest cover as it covers all perils of B and C
and loss or damage due to any other risk except some exclusion specified
such as:

i. Loss or damage due to willful conduct of the insured
ii. Ordinary leakage, breakage, wear and tear or ordinary loss in weight /

volume
iii. Insufficiency in packing
iv. Inherent vice
v. Delays
vi. Loss due to insolvency of owners
vii. Nuclear perils

These exclusions are common to all clauses of inland, air and sea. There are
separate clauses also for trading of specific commodities like coal, bulk oil and
tea etc. Marine cover can be extended by paying additional premium to cover
War, Strikes, Riots, Civil Commotion and Terrorism. Marine and Aviation policies
is the only branch of insurance that offer cover against War perils.

Important

Risks covered under a marine policy, under the standard policy form and under
the various clauses attached to the policy broadly fall into three categories:

i. Marine perils,
ii. Extraneous perils and
iii. War, strike riot, civil commotion and terrorism risks.

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