Covered Losses under Cargo Marine Insurance
Interlink編集部Covered Losses under Cargo Marine Insurance are losses, damage or specified expenses that may be recoverable under the actual insurance policy, Institute Cargo Clauses (ICC), endorsements and duration applicable to the insured transit.
Marine cargo insurance is not limited to major marine casualties such as the sinking of an ocean vessel. Depending on the applicable wording, cargo loss arising during ocean transport, inland transport, port handling, transshipment, warehousing and other stages within the insured transit may fall for consideration.
However, the physical description of the result — such as “broken,” “wet,” “missing” or “short” — does not determine coverage by itself. ICC(A), ICC(B) and ICC(C) use different coverage structures, while War and Strikes risks are addressed under separate clauses. Duration, insurable interest, causation and exclusions must also be considered.
The purpose of this article is to explain, at a general level, what types of loss, liability and expense can enter the marine cargo insurance coverage analysis. The detailed legal structure of exclusions involving insufficient packing, inherent vice, ordinary loss, delay, unseaworthiness or unfitness, War and Strikes risks is addressed in Excluded Losses under Cargo Marine Insurance and the relevant specialist articles.
Unless otherwise stated, this article primarily addresses the ICC 1/1/09 wordings. Actual policies may contain additional risks, exclusions, commodity-specific terms and other endorsements, so the complete insurance contract must be reviewed in an individual case.
Scope of This Article
| Item | What This Article Covers | What Other Articles Cover |
|---|---|---|
| Basic structure of covered losses | The overall relationship between physical cargo loss, general average, salvage and specified expenses | Marine Cargo Insurance examines the insurance contract as a whole |
| ICC(A) | What types of loss enter the broad ICC(A) coverage analysis | ICC(A) examines the coverage grant, duration and principal exclusions in detail |
| ICC(B) | How loss caused by specified listed perils is considered | ICC(B) examines each listed peril in detail |
| ICC(C) | How loss caused by the narrower listed perils is considered | ICC(C) examines each listed peril in detail |
| Excluded losses | Why exclusions must still be reviewed after a loss enters the coverage analysis | Excluded Losses under Cargo Marine Insurance examines Clauses 4 to 7 and other non-coverage issues in detail |
| War and Strikes | Why separate cover must be confirmed | War Risks and Strikes Risks examines insured risks, duration and exclusions in detail |
| General average and salvage | Why insurance action may be required even without physical cargo damage | General Average examines security, contribution and adjustment procedures |
| Forwarding Charges | Specified additional expenses where an insured peril terminates transit at another place | Transit-interruption and expense articles examine detailed cost treatment |
| Loss mitigation expenses | Reasonable expenses connected with the duties to mitigate loss and preserve rights | Loss Prevention Expenses examines individual expense categories |
| Carrier liability | Why insurance coverage and third-party liability must be analysed separately | Carrier Liability and Subrogation examine third-party recovery |
Covered Loss Is Not Limited to Physical Cargo Damage
The principal subject of marine cargo insurance is physical loss of or damage to the insured cargo. Standard ICC wordings, however, contain other provisions that may also produce an insurance recovery.
| Type of Cover | Main Subject | Typical Example | Main Points to Confirm |
|---|---|---|---|
| Physical loss or damage | Physical cargo loss caused by an insured risk | Breakage, wet damage, fire damage, theft or non-delivery | ICC condition, cause, duration and exclusions |
| General average sacrifice | Cargo sacrificed for the common safety | Jettison or damage arising from an extraordinary general average measure | General average act, applicable wording and exclusions |
| General average and salvage charges | Specified contribution and salvage charges determined under the contract of carriage or governing law and practice | General average contribution and salvage charges | Declaration, Average Adjuster and security documentation |
| Both to Blame Collision Clause liability | Specified liability incurred by the Assured under such a clause in the contract of carriage | Carrier claim following a vessel collision | Contract of carriage, ICC Clause 3 and notice to insurers |
| Forwarding Charges | Certain reasonable additional expenses incurred in forwarding cargo to the insured destination after an insured peril terminates transit elsewhere | Additional unloading, storage and forwarding expenses | Insured peril, cause of termination and reasonableness of expenditure |
| Expenses connected with mitigation and preservation of rights | Proper and reasonable charges incurred in carrying out the duties to avert or minimise recoverable loss and preserve third-party rights | Emergency preservation and reasonable protective action | ICC Clause 16, connection with the casualty and reasonableness |
Marine cargo insurance should therefore not be analysed solely by asking whether the cargo itself has visible physical damage. General average and specified expense provisions can become material even where the claim is not simply for the damaged value of the goods.
Coverage Structures of ICC(A), ICC(B) and ICC(C)
| Condition | Basic Coverage Structure | Losses That More Readily Enter the Coverage Analysis | Losses Requiring Particular Review | Main Analytical Focus |
|---|---|---|---|---|
| ICC(A) | Broad cover for risks of loss of or damage to cargo except as excluded by Clauses 4 to 7 and other applicable terms | Accidental breakage, wet damage, theft, non-delivery, shortage, contamination and handling loss | Packing, inherent vice, ordinary loss, delay and War or Strikes risks | Loss during insured transit and applicable exclusions |
| ICC(B) | Cover for risks specifically listed in Clause 1 | Fire, stranding, overturning, earthquake, washing overboard and specified water entry | Ordinary breakage, theft, unexplained shortage and ordinary handling casualties | Listed peril and causation |
| ICC(C) | Cover for a narrower group of Clause 1 listed perils | Fire, stranding, sinking, overturning, collision, general average sacrifice and jettison | Ordinary breakage, theft, wet damage, earthquake and washing overboard | Application of the limited listed peril and causation |
| War | Separate wording for specified war risks excluded from the ordinary ICC | War, hostile acts, certain capture or detention and derelict weapons | War-specific duration, routing, delay and sanctions issues | Actual Institute War Clauses incorporated |
| Strikes | Separate wording for specified strikes, riot and terrorism-related risks excluded from the ordinary ICC | Specified physical loss caused by strikers or rioters and certain terrorism or motivated acts | Labour shortage and delay | Actual Institute Strikes Clauses incorporated |
Under ICC(A), the Assured is not required to identify a named peril from a Clause 1 list in the same way as under ICC(B) or ICC(C). Under ICC(B) and ICC(C), however, the existence of cargo damage alone is insufficient; the loss must be brought within the applicable listed-peril wording.
Main Types of Loss That Enter the Coverage Analysis
| Loss | Typical Situation | Difference by Condition | Main Evidence |
|---|---|---|---|
| Breakage, bending or denting | Physical damage following dropping, impact, overturning or handling | ICC(A) and the listed-perils forms use different coverage structures | Pre-shipment photographs, damage photographs, handling records and Survey Report |
| Wet damage | Damage caused by sea water, rain water or other external water | ICC(B) requires analysis of its water-entry wording; ICC(C) may require additional cover | Cargo and container photographs, salt testing and casualty report |
| Theft, non-delivery or pilferage | Cargo stolen or failing to arrive during transit | The coverage structure differs materially between ICC(A), ICC(B) and ICC(C) | Seal records, police report, handover records and carrier report |
| Shortage | Quantity difference caused by theft, leakage or another transit event | Ordinary loss, shipment error and measurement differences must be distinguished | Packing List, weight record, tally and delivery remarks |
| Contamination or mixing | Physical impairment caused by leakage from other cargo or foreign matter | External casualty must be distinguished from characteristics of the cargo itself | Container photographs, stowage information and Survey Report |
| Deterioration of refrigerated cargo | Physical cargo deterioration following an insured temperature-control event | Temperature endorsements, inherent vice and delay require particular attention | Temperature logs, equipment records and pre-shipment quality evidence |
| Fire or explosion | Damage caused by flame, heat, smoke, soot or firefighting | A major insured peril across ICC(A), ICC(B) and ICC(C) | Fire report, photographs and inspection evidence |
| Major marine casualty | Damage following stranding, sinking or collision | Important under all three conditions, subject to causation and exclusions | Shipping line notice, casualty report, stowage position and Survey Report |
| Land-conveyance casualty | Truck overturning or railway derailment | Expressly listed under ICC(B) and ICC(C) | Accident certificate, vehicle photographs and delivery records |
| General average | Sacrifice or expenditure for the common safety | Contribution and security may arise despite no physical cargo damage | General average notice, security and Average Adjuster documents |
Understand the Sequence Rather Than Labels Such as “Likely Covered”
Practitioners sometimes use expressions such as “likely covered” or “unlikely to be covered.” Those expressions are useful only as a preliminary shorthand. Actual recovery depends on the contractual sequence of analysis.
| Category | Typical Situation | Analytical Approach | Next Point to Confirm |
|---|---|---|---|
| Loss with a relatively clear coverage entry point | Clear accidental breakage during ICC(A) transit or specified water entry under ICC(B) | The connection with the coverage grant is relatively clear | Exclusions, duration and quantum |
| Loss requiring insured-peril analysis first | Ordinary breakage, theft or non-delivery under ICC(B) or ICC(C) | First determine whether Clause 1 or an endorsement responds | Cause and additional cover |
| Loss involving competing causes | Rust, mould, condensation, deterioration or refrigerated cargo | Separate an external event from characteristics of the cargo itself | Pre-shipment condition, environment and casualty records |
| Insurance response without physical cargo damage | General average contribution or specified salvage charge | Review the separate expense provisions | Clause 2 and general average documents |
| Expense claim | Forwarding Charges or reasonable mitigation expenses | Separate expense coverage from physical cargo damage | Clauses 12 and 16, expenditure and necessity |
Basic Requirements for a Coverage Analysis
| Item | What to Confirm | Why It Matters | Main Evidence |
|---|---|---|---|
| Applicable wording | ICC(A), ICC(B), ICC(C), War, Strikes and endorsements | Determines the insured risks | Policy, Certificate and Declaration |
| Insured cargo | Whether the damaged goods fall within the insured subject matter | Uninsured property does not enter the claim analysis | Invoice, Packing List and insurance declaration |
| Insurable interest | Whether the claimant had the required interest at the time of loss | Fundamental to entitlement to recover | Sales contract, Incoterms and policy |
| Duration | Whether the casualty occurred during the insured transit | An insured peril outside duration raises a separate issue | Pickup, terminal, B/L, release and delivery records |
| Existence of loss | What physical loss or other covered burden actually occurred | Defines the claim being presented | Photographs, inspections and Survey Report |
| Cause | What caused the loss | Especially important under ICC(B) and ICC(C) | Casualty report, photographs and equipment records |
| Exclusions | Whether Clauses 4 to 7 or another exclusion applies | Entering the coverage grant does not determine the final outcome | Packing, commodity and casualty evidence |
| Quantum | Repair, depreciation, total loss and salvage value | Required to establish the amount of the claim | Estimate, Invoice and survey evidence |
Coverage Analysis Flow
- Review the policy and incorporated clauses.
Confirm the ICC, War, Strikes, additional risks, additional exclusions and commodity-specific terms. - Identify the insured cargo and insurable interest.
Confirm that the goods are insured and that the claimant held the required interest at the time of loss. - Establish the time and place of the casualty.
Identify the relevant stage of pickup, port handling, ocean carriage, warehousing or inland delivery. - Confirm insured duration.
Separate the date of discovery from the actual occurrence and apply the relevant Transit Clause. - Identify the actual loss.
Classify physical damage, wet damage, theft, shortage, total loss, general average contribution or another claimed item. - Apply the relevant coverage structure.
Determine whether the policy uses broad ICC(A) cover or listed-perils ICC(B) or ICC(C). - Establish causation.
Under ICC(B) and ICC(C), in particular, connect the listed peril with the particular cargo loss. - Review general average, salvage and specified expenses separately.
Consider Clauses 2, 12 and 16 where applicable. - Review exclusions.
Detailed exclusion analysis is addressed in Excluded Losses under Cargo Marine Insurance, but the actual policy must be reviewed in every claim. - Take reasonable loss-mitigation measures.
Prevent secondary damage while preserving physical evidence. - Preserve rights against third parties.
Protect Claim Notice and limitation positions against carriers, warehouses and other parties. - Submit the evidence to the insurer or insurance intermediary.
Organise coverage, causation, quantum and supporting documents for the final insurance determination.
Cases That Frequently Cause Practical Problems
| Case | Main Issue | Evidence | Decision Point | Initial Action |
|---|---|---|---|---|
| Machinery insured under ICC(A) is dropped during handling | Accidental damage versus packing or pre-existing damage | Handling records, photographs, packing information and Survey Report | Establish physical loss first and analyse exclusions separately | Preserve cargo and packing |
| Cargo insured under ICC(B) is damaged during ordinary warehouse handling | Whether any Clause 1 listed peril applies | Incident report, wording and photographs | Breakage alone does not establish ICC(B) cover | Identify the precise cause |
| Sea water enters cargo insured under ICC(B) | Application of the specified water-entry peril | Container photographs, salt testing and cargo photographs | Identify water type, place of entry and causation | Inspect before container return |
| Cargo insured under ICC(C) is damaged when a truck overturns | Application of the land-conveyance overturning peril | Accident report, vehicle and cargo photographs | Confirm duration and causation | Secure accident-scene records |
| Cargo is stolen | Coverage of theft under the actual ICC condition | Police report, seal and handover records and policy | The coverage structure differs materially among A, B and C | Notify the carrier promptly |
| Refrigerated cargo deteriorates | Temperature casualty versus normal deterioration | Temperature logs, quality evidence and equipment records | Do not decide from the result “deteriorated” alone | Secure temperature data |
| General average is declared but the cargo is undamaged | General average contribution rather than physical loss | GA notice, security documents and policy | Insurance action may be required despite no physical damage | Notify the insurance side promptly |
| An insured peril terminates transit at an unintended port | Application of Forwarding Charges | Casualty report, storage and forwarding costs and policy | Confirm that the expenditure satisfies the contractual requirements | Consult insurers before major expenditure where practicable |
Application Scenario 1 — Large Machinery Dropped During Handling under ICC(A)
Scenario: Industrial machinery insured for JPY 28 million is exported from Yokohama to Rotterdam under ICC(A). During transshipment, the wooden case is dropped from handling equipment. Internal components are found bent on arrival and repair is estimated at JPY 6.5 million.
Under ICC(A), there is no requirement to find a separately named “dropping” peril in Clause 1 in the same way as under ICC(B) or ICC(C). The analysis first establishes physical cargo damage during insured transit.
The relationship between the dropping incident and the internal damage should then be supported by handling records, packing condition, photographs and shock evidence.
If the insurer subsequently raises insufficient packing, that becomes a separate exclusion analysis. This article focuses on how the physical loss enters the coverage analysis; the detailed requirements of Clause 4.3 are addressed in Excluded Losses under Cargo Marine Insurance.
Application Scenario 2 — Ordinary Handling Damage under ICC(B)
Scenario: Machinery components insured for JPY 12 million are exported from Nagoya to Singapore under ICC(B). A case is dropped by a forklift inside a warehouse at the loading port, causing JPY 3 million of partial internal damage.
The existence of physical cargo damage is clear. ICC(B), however, is a listed-perils form, so physical breakage by itself does not establish an insured loss.
ICC(B) contains a specific provision for total loss of a package lost overboard or dropped while loading onto or unloading from a vessel or craft. That is not a general provision insuring every partial damage event caused by a forklift within a warehouse.
The location, operation being performed, extent of loss and any additional cover must therefore be reviewed. If no listed peril or endorsement applies, the physical loss may remain outside standard ICC(B) cover.
The scenario demonstrates the distinction between “cargo has been damaged” and “the selected insurance condition covers the cause of that damage.”
Application Scenario 3 — General Average Contribution with Undamaged Cargo
Scenario: Raw materials insured for JPY 35 million are imported from Shanghai to Tokyo. A major vessel fire results in firefighting, towage and entry into a port of refuge, after which general average is declared.
The cargo remains usable and does not suffer material physical damage. Nevertheless, security including a General Average Guarantee is requested before release and a contribution of approximately JPY 4 million subsequently becomes relevant.
It would be incorrect to conclude that marine cargo insurance is irrelevant because the cargo itself is undamaged. Clause 2 of the standard ICC addresses general average and salvage charges subject to its terms.
The general average declaration, Average Adjuster's request, security documentation, cargo value and insurance policy should therefore be submitted promptly to the insurer or insurance intermediary.
This is a principal example of marine cargo insurance responding to a maritime financial burden rather than only to direct physical damage to the insured cargo.
General Average and Salvage Charges
Clause 2 of ICC(A), ICC(B) and ICC(C) addresses general average and salvage charges adjusted or determined according to the contract of carriage and governing law and practice and incurred to avoid or in connection with avoiding loss from a cause not otherwise excluded.
A cargo interest may therefore face a contribution even where the cargo arrives physically undamaged.
Upon a general average declaration, the cargo owner should review the General Average Guarantee, General Average Bond, Average Adjuster's communications and other security or adjustment documents rather than focusing solely on physical cargo condition.
Forwarding Charges — When Transit Terminates Elsewhere
Clause 12 of ICC(A), ICC(B) and ICC(C) provides for certain additional expenses properly and reasonably incurred in unloading, storing and forwarding the insured cargo to its insured destination where operation of an insured risk terminates the insured transit at another port or place.
Such expenditure is not recoverable merely because an unexpected location generates additional cost. The cause of termination, insured peril, exclusions and the necessity and reasonableness of the expenses must be reviewed.
Forwarding Charges are also separate from general average and salvage charges. Physical cargo loss, general average, Forwarding Charges and other expenses should therefore be separated into distinct heads of claim.
Loss Mitigation and Preservation of Third-Party Rights
Clause 16 of ICC(A), ICC(B) and ICC(C) requires the Assured and its employees and agents, in respect of recoverable loss, to take reasonable measures to avert or minimise the loss and to preserve and exercise rights against carriers, bailees and other third parties.
The standard wording also provides for reimbursement, in addition to recoverable loss, of charges properly and reasonably incurred in carrying out those duties.
Possible measures include moving wet cargo to prevent secondary corrosion, transferring refrigerated cargo to an appropriate temperature-controlled environment, or separating sound and damaged goods where this reasonably limits further loss.
Drying, repacking, inspection and other expenses are not automatically recoverable merely because they follow a casualty. Their relationship with the loss, necessity, reasonableness, actual wording and communications with the insurer should be reviewed.
The insurance claim and preservation of third-party rights should also proceed in parallel. Where the Contracting Carrier, Actual Carrier, warehouse, packing contractor or another party may be responsible, appropriate delivery remarks, Claim Notice, evidence preservation and limitation periods should be addressed.
Freight Forwarder Involvement
These Standard Five Classifications are not legal classifications established by statute or universally accepted by the industry. They are an analytical framework used in this series to organize the scope of a freight forwarder's contractual and operational involvement.
| Standard Five Classifications | Typical Involvement | Connection with Cargo Insurance | What Should Not Be Determined | Main Action |
|---|---|---|---|---|
| 1. Simple Intermediary | Connects the shipper, insurer and carrier | Transmits placement and casualty information | Final insurance coverage | Transmit policy and factual information accurately |
| 2. Cargo Transportation Service Provider | Performs pickup, storage, handling or delivery | Often possesses evidence of cargo condition and the casualty | Treating its operational responsibility as identical to insurance coverage | Preserve work records and photographs |
| 3. NVOCC / House B/L Issuer | Issues a House B/L and acts as Contracting Carrier | May face transport liability for the casualty stage | Assuming that insurance payment proves carrier liability, or vice versa | Separate insurance analysis from carrier liability |
| 4. Door-to-Door Single Contractor | Contracts for the full transport chain | Can integrate evidence across multiple transport stages | Assuming door-to-door contracting gives authority to decide insurance coverage | Identify the casualty stage and subcontracting chain |
| 5. Agent / Coordinator for Specific Operations | Coordinates local survey, storage or handling | Supports collection of local casualty evidence | Promising insurance payment beyond delegated authority | Confirm authority and report factual information |
In addition to the Standard Five Classifications, the actual analysis should determine whether the freight forwarder acted as Contracting Carrier, Actual Carrier or merely as an arranger and what authority it had regarding placement of insurance.
Common Misunderstandings
| Misunderstanding | Actual Practice | Practical Caution |
|---|---|---|
| Every transit loss is covered once cargo insurance has been purchased | Coverage depends on the actual ICC, endorsements, duration and exclusions. | Separate the existence of insurance from cover for the particular loss. |
| Under ICC(A), there is no need to investigate the casualty | A named-peril list is not required in the same way as B or C, but loss, circumstances, duration and exclusions still require evidence. | Preserve casualty evidence. |
| Any breakage is covered under ICC(B) | ICC(B) requires application of a Clause 1 listed peril. | Investigate the cause rather than the damage description alone. |
| ICC(C) is cargo insurance, so theft must be covered | Standard ICC(C) is a limited listed-perils form and does not broadly insure theft. | Review additional cover. |
| No physical cargo damage means no insurance claim can arise | General average and salvage charges may still require insurance action. | Do not ignore a general average declaration. |
| Every expense incurred after a casualty is covered | Forwarding Charges and mitigation expenses each have contractual requirements. | Consult insurers before substantial expenditure where practicable. |
| Strikes cover includes economic loss caused by delay | Physical cargo loss and economic delay loss are different issues. | Review War Risks and Strikes Risks and Delay Damage separately. |
| If the insurer pays, the carrier must be legally liable | Insurance coverage and carrier liability arise under different legal relationships. | Analyse insurance and third-party liability separately. |
| If the insurance does not respond, no claim can be made against the carrier | Third-party liability may remain even where the cargo policy does not respond. | Preserve notice and litigation limits. |
Decision Checklist
| Stage of Review | Party to Confirm With | What to Confirm | Action If There Is a Problem |
|---|---|---|---|
| Placement | Shipper, insurer and insurance intermediary | Cargo, value, transit, ICC and additional risks | Confirm before shipment that the principal exposures are insured |
| Discovery of loss | Cargo owner, warehouse and delivery company | Cargo condition, outer packing, quantity and discovery time | Preserve photographs before movement, repair or disposal |
| Policy review | Insurer and insurance intermediary | ICC, War, Strikes, endorsements and duration | Do not determine coverage from the condition name alone |
| Cause investigation | Carrier, warehouse and surveyor | Dropping, collision, water entry, theft, fire and other events | Obtain objective evidence rather than speculate |
| ICC(B) or ICC(C) review | Insurer and insurance intermediary | Listed peril and causation | Match the actual casualty against the wording |
| General average | Shipping line, insurer and Average Adjuster | Declaration, security and contribution documents | Notify the insurance side promptly even where cargo is undamaged |
| Additional expenses | Insurer, insurance intermediary and surveyor | Cause, necessity, reasonableness and applicable clause | Obtain guidance before major expenditure where possible |
| Quantum | Cargo owner, repairer and surveyor | Repair cost, salvage value, depreciation and possible total loss | Support each amount with evidence |
| Third-party recovery | Contracting Carrier, Actual Carrier, warehouse and other parties | Casualty stage, responsibility, Claim Notice and time limits | Preserve rights without waiting for the insurance decision |
| Coverage dispute | Insurer, insurance intermediary and maritime lawyer where appropriate | Insured peril, exclusion, causation, evidence and governing law | Request the contractual and factual basis in writing |
When to Involve an Insurer, Insurance Intermediary or Maritime Lawyer
Routine casualty notification, documentary requirements and ordinary coverage enquiries should normally be handled first with the insurer or insurance intermediary. A surveyor or maritime lawyer experienced in marine insurance and international carriage should also be considered where:
- a high-value claim involves both an insured peril and a disputed exclusion;
- application of an ICC(B) or ICC(C) listed peril is disputed;
- insufficient packing and an abnormal fall or collision are competing causes;
- inherent vice and an external event are disputed as competing causes;
- occurrence during insured transit must be proved by circumstantial evidence;
- general average, salvage or substantial Forwarding Charges are disputed;
- interpretation of War, Strikes or another special clause is disputed;
- cargo insurance and liability of the Contracting Carrier or Actual Carrier are disputed simultaneously;
- insurance, carrier-notice or litigation time limits are approaching; or
- foreign official evidence, samples or other casualty evidence must be preserved urgently.
Practical Points
Covered losses under marine cargo insurance should not be reduced to a list stating that “breakage is covered” or “theft is covered.”
The analysis begins with the applicable ICC or other wording. It then considers insured duration, the actual loss, causation and whether the loss enters the relevant coverage grant. Exclusions and quantum are considered thereafter.
Marine cargo insurance also extends beyond direct physical cargo damage. Subject to their contractual requirements, general average and salvage charges, Both to Blame Collision Clause liability, Forwarding Charges and reasonable expenses connected with mitigation and preservation of third-party rights may also be significant.
Rather than duplicating the detailed exclusion analysis here, this article should operate as the positive coverage gateway to the more specialised articles on Excluded Losses under Cargo Marine Insurance, ICC(A), ICC(B), ICC(C), and War Risks and Strikes Risks.
Summary
Covered Losses under Cargo Marine Insurance principally concern physical loss of or damage to cargo during insured transit, but the actual scope differs among ICC(A), ICC(B), ICC(C), War, Strikes and other endorsements.
ICC(A) uses a broad coverage grant subject to exclusions, while ICC(B) and ICC(C) require the loss to be connected with the specified listed perils in Clause 1.
The standard ICC also addresses matters beyond direct physical damage, including specified general average and salvage charges, Both to Blame Collision Clause liability, Forwarding Charges and proper and reasonable charges incurred in carrying out loss-mitigation and third-party-rights duties.
A practical analysis therefore reviews: the applicable insurance terms; insured cargo and insurable interest; duration; the actual loss; cause; insured peril; exclusions; quantum and expenses; and preservation of rights against third parties.
The detailed legal analysis of exclusions belongs in Excluded Losses under Cargo Marine Insurance. This article serves as the general entry point for understanding what types of cargo loss, liability and expense may enter the marine cargo insurance coverage analysis.
