What are the differences between Institute Cargo Clauses B and Institute Cargo Clauses C?

If you would like to secure your international cargo with an insurance policy, you will have 3 options in terms of scope of insurance coverage:

Institute Cargo Clauses (A), Institute Cargo Clauses (B) and Institute Cargo Clauses (C).
  • Institute Cargo Clauses (A) known as All Risks insurance policy and offers the widest range of cover.
  • Institute Cargo Clauses (B) supplies a medium term cargo insurance coverage.
  • Institute Cargo Clauses (C) provides the minimum cargo insurance coverage.
On my previous article, I have explained the differences between Institute Cargo Clauses A and Institute Cargo Clauses C
Today I would like to mention the differences between Institute Cargo Clauses B and Institute Cargo Clauses C?

Institute Cargo Clauses (C):

Institute Cargo Clauses (C) is the minimum cover cargo insurance policy available in the market. Most of the risks covered under ICC (C) insurance are related to accidents and total loss of the goods due to fire or explosion.

Below you can find the details of the risk coverage of this type of insurance policy.

Loss of or damage to the subject-matter insured reasonably attributable to
  • fire or explosion 
  • vessel or craft being stranded, grounded, sunk or capsized 
  • overturning or derailment of land conveyance 
  • collision or contact of vessel craft or conveyance with any external object other than water 
  • discharge of cargo at a port of distress, 
Loss of or damage to the subject-matter insured caused by
  • general average sacrifice 
  • jettison
Definitions: General Average SacrificeThere is a general average act when, and only when, any extraordinary sacrifice or expenditure is intentionally and reasonably made or incurred for the common safety for the purpose of preserving from peril the property involved in a common maritime adventure.JettisonThe intentional throwing overboard of part of the cargo or some piece of the ship in order to save the ship or its cargo.
Institute Cargo Clauses (B):

Institute Cargo Clauses (B) is the medium cover cargo insurance policy available in the market. ICC (B) cargo insurance covers more risks than ICC (C) cargo clauses , but covers less risks than ICC (A) All Risks insurance policies. 

Below you can find the details of the risk coverage of ICC (B) insurance policy.

Loss of or damage to the subject-matter insured reasonably attributable to
  • fire or explosion 
  • vessel or craft being stranded, grounded, sunk or capsized 
  • overturning or derailment of land conveyance 
  • collision or contact of vessel craft or conveyance with any external object other than water 
  • discharge of cargo at a port of distress, 
  • earthquake volcanic eruption or lightning, 
Loss of or damage to the subject-matter insured caused by
  • general average sacrifice 
  • jettison 
  • entry of sea lake or river water into vessel craft hold conveyance container or place of storage
Total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft.

Differences Between Institute Cargo Clauses (B) and Institute Cargo Clauses (C):

Only difference between Institute Cargo Clauses (B) and Institute Cargo Clauses (C) is the additional risks covered under ICC (B) cargo insurance policies.

Below you can find the risks covered under Institute Cargo Clauses (B), but not covered under Institute Cargo Clauses (C):
  • Loss of or damage to the subject-matter insured reasonably attributable to earthquake volcanic eruption or lightning. 
  • Loss of or damage to the subject-matter insured caused by entry of sea lake or river water into vessel craft hold conveyance container or place of storage. 
  • Total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft.

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