Marine Cargo Insurance

Marine insurance is a specialized type of coverage that protects goods, vessels, and related transport infrastructure during transit—whether by sea, air, or land. Despite the name, it’s not limited to ocean shipping.

Marine cargo Insurance protects goods in transit—whether by sea, air, road, or rail—against physical loss or damage. It’s essential for importers, exporters, and logistics providers who want to safeguard their cargo from unpredictable risks during transportation.

This insurance is governed by standardized terms known as the Institute Cargo Clauses (ICC), developed by the International Underwriting Association of London. These clauses define the scope of coverage and are categorized into three levels: ICC (A), ICC (B), and ICC (C).

ICC (A) offers the broadest and most comprehensive form of marine cargo insurance coverage.

What is covered under ICC (A) Marine Insurance Cover

Risks Covered

ICC (A) is a Comprehensive “All Risks” Marine Cargo Insurance

ICC (A) provides the widest scope of coverage among the Institute Cargo Clauses. It insures against all risks of physical loss or damage to the insured cargo during transit, unless specifically excluded.
This clause generally covers loss or damage caused by:

Fire or explosion
Vessel or craft grounding, capsizing, sinking, or stranding
Overturning or derailment of land conveyance
Collision or contact with external objects (excluding rain water)
Discharge of cargo at a port of distress
Theft, pilferage, and non-delivery
Rough handling or breakage during loading/unloading
Water ingress (sea, lake, or river water entering the container or vessel)
Natural disasters (earthquake, volcanic eruption, lightning)
General average and salvage charges
Jettison (intentional discarding of cargo to save the vessel)
Jettison (intentional discarding of cargo to save the vessel)
Mysterious disappearance or loss without clear cause
Piracy and violent acts by crew or third parties

Possible Policy Extensions

While ICC (A) is broad, it can be enhanced to offer broader protection with the following optional extensions:

War Risks: Covers loss due to war, civil war, revolution, rebellion, or hostile acts.
Strikes, Riots & Civil Commotions (SRCC): Covers damage from labour disturbances, riots, or civil unrest.
Storage and Concealed Losses - damages or shortages that occur during storage or transit but aren’t immediately visible upon delivery
Transshipment - transferring goods from one mode of transportation to another, or from one vessel to another, during their journey from origin to final destination
Storage Extension: Extends coverage beyond the standard transit period (e.g. if goods are delayed in a warehouse).
Contingency Insurance: Protects sellers when buyers are responsible for insurance but fail to arrange it.
Rejection Insurance: Covers losses if goods are rejected by customs or buyers due to regulatory or quality issues.

General Exclusions Under ICC (A)

Exclusions

Despite its “all risks” label, ICC (A) generally excludes the following risks:

Wilful misconduct by the insured
Ordinary leakage, wear and tear, or loss in weight/volume
Inherent vice (e.g. natural spoilage of perishable goods)
Improper or insufficient packing (if done by the insured or their employees)
Delay, even if caused by an insured peril
Unseaworthiness or unfitness of vessel, if known to the insured
Insolvency or financial default of vessel owners/operators (if foreseeable)
Nuclear and radioactive contamination
Cyber attacks (in some policies unless specifically included)

Did you Know?

Long before formal insurance policies existed, ancient civilizations like the Babylonians (circa 1750 BC) practiced a form of risk management through bottomry contracts. Under the Code of Hammurabi, a merchant could take a loan to fund a voyage, and if the ship was lost at sea, the loan didn’t have to be repaid. This was an early form of marine risk-sharing.

But the first formal marine insurance policy as we understand it today emerged in Genoa, Italy, in 1347. These early contracts were handwritten agreements between merchants and insurers, specifying the voyage, cargo, and premium.