Marine Insurance

Institute cargo clauses come embedded in a marine insurance policy which covers cargo in-transit. These clauses are there to specify what kind of items in the cargo is covered in case of any loss or damage to the shipment. It is interesting to note; institute cargo clause can cover anything from the cargo to the container that holds its value along with the transport mode which is used to ship the items.

Mainly, there are three basic sets of institute cargo clauses; A, B, C. Your coverage is directly related to your insurance premium. It means, the higher the marine insurance premium you pay; the more would be coverage you get. Here are the three institute cargo clauses as detailed below:

Institute Cargo Clause A:

It is considered to be one of the widest marine insurance coverages and therefore, you should be ready to pay the high premium for this as you would be getting the extensive cover.

Institute Cargo Clause B:

It is considered to be slightly a restrictive cover and therefore, the premium is moderate. The policyholder mainly asks for the coverage for some more valuable items or only a partial cargo.

Institute Cargo Clause C:

It is the most restrictive coverage, and you should be ready to pay the low premium. However, as the premium would be low, your coverage would also be less.

Each of the institute cargo clauses mentioned above is restricted to goods which are in transit. The items being shipped would be considered the goods in transit only if they have left from the original location and are still in transit to the destination.