MARINE CARGO INSTITUTE CLAUSES COMPARED
Institute Cargo Clause A
As stated above, Institute Cargo Clause A is the widest coverage you can purchase, also known as an ‘All Risks’ Cargo insurance policy. For this reason, it is the most expensive of the three.
What exactly does it cover? Clause A covers maximum risks. It can cover the cargo, container, and transportation, and any exclusions can be found in the General Exclusion Clauses.
Institute Cargo Clause B
This clause is a more restrictive kind of coverage. For this reason, you should expect to pay a moderate premium. In the case of this clause, you might only request for the more valuable items in your cargo to be covered or for partial cargo coverage.
Institute Cargo Clause C
This clause, of course, is the most restrictive of the three. It covers only very limited risks. Furthermore, most of the situations covered must happen during carriage. The main aspects of cover include:
• General average
• Fire / explosion
• Vessel grounding / capsizing
• General average sacrifice
The Differences Between Institute Cargo Clauses A, B, and C
The main differences between the three levels of Institute Cargo Clauses are what they cover, and in what circumstances said items are covered.
Each clause sets forth detailed parameters for what it does and doesn't cover. Because of the difference in cover the premium payable for each will vary.