Drive Away Clause — Cargo Insurance Treatment for Motor Vehicles

What Is the Drive Away Clause

The Drive Away Clause is a special clause that clarifies the treatment under marine cargo insurance of vehicles and transport equipment such as automobiles, trucks, chassis, tractors, and construction machinery, during the period after they have been shipped or discharged as cargo, and are being driven or towed from the discharge port to the final warehouse, storage site, or delivery location.

Unlike ordinary cargo, vehicles and similar equipment may not only be transported after discharge by carriers such as car carriers or low-bed trailers but may also move under their own power or be towed by other vehicles.

In these instances, while the insured object continues to be transported as cargo, it is operating as a vehicle or machinery on the road.

This raises the question of whether the ordinary course of transit is still ongoing, or if the vehicle has transitioned to use as a vehicle, test running, commercial operation, or delivery to the customer.

The core function of the Drive Away Clause is to organize the physical damage to the insured cargo—vehicles or similar equipment transported as cargo—incurred during self-driving or towing from the specified discharge location to the final warehouse or similar destination, as covered within the terms defined in the formal clause.

Meanwhile, personal injury to third parties, damage to other vehicles, buildings, road infrastructure, or liability of the driver or towing party are normally handled separately from marine cargo insurance, typically under automobile insurance, third-party liability insurance for bodily injury and property damage, carrier’s liability insurance, or similar coverage.

Merely having the Drive Away Clause attached does not guarantee coverage of all accidents during self-driving or towing. It is necessary to separately verify the exact clause wording, the underlying ICC conditions, insurance period, purpose of the movement, relevant transport section, cause of the accident, and whether third-party damage is involved.

Scope Covered in This Article

Item	Contents Covered in This Article	Contents Covered in Other Articles or Separate Insurance
Drive Away Clause	This clarifies the relationship between self-driven or towed movement to the final warehouse, etc., and marine cargo insurance.	The official clause wording used by each insurance company should be confirmed in individual policies and special clauses.
ICC 2009 Clause 8	Clarifies ordinary course of transit, unloading at the final warehouse, diversion to storage or distribution, and termination of cover.	The overall insurance period of marine cargo insurance is covered in articles concerning inter-warehouse terms and termination of cover on import cargo.
Self-driving	Clarifies the purpose of movement, route, driver, and condition of the vehicle when the insured cargo moves under its own power.	Local laws concerning registration, license plates, driving permits, etc. should be confirmed for each country.
Towing	Clarifies towing by other vehicles, coupling methods, towing sections, and damage to the insured cargo.	Damage to the towing vehicle itself and liability of the towing party should be confirmed under separate insurance.
Loaded Transport	Clarifies differences when transporting by loading onto carriers, low-bed vehicles, trailers, etc.	Defects in stowage, securing, and lashing are covered in dedicated articles.
Damage to the Insured Cargo Itself	Clarifies physical damage to the vehicle body, frame, suspension, etc. due to collision, contact, overturning, falling, etc.	Whether compensation applies should be judged individually depending on basic conditions, special clauses, and cause of the accident.
Third-Party Liability	Differentiates damage handled by marine cargo insurance from personal and property damage to third parties.	Confirmation should be made with auto insurance, third-party liability insurance, and carrier liability insurance.
Existing Defects and Wear	Clarifies the relationship with failures, poor maintenance, normal wear before the accident, and the characteristics inherent to the cargo.	Responsibility under maintenance contracts and product liability should be confirmed separately.
Evidence Preservation at the Time of Accident	Clarifies records of driving route, purpose of movement, pre- and post-accident condition, police documents, and repair records.	Specific damage assessment and litigation response should be consulted with surveyors, insurance companies, or attorneys.
Freight Forwarder's Involvement	Addresses pre-confirmation of self-driving sections, insurance arrangement, accident notification, and information organization among related parties.	Final compensation liability should be determined based on contracts, clauses, instruction content, accident cause, and liability limitation.

Why the Drive Away Clause Is Necessary

ICC 2009 Clause 8.1 establishes the basic framework that insurance coverage for the insured cargo begins at the moment the cargo is first moved at the warehouse or storage location at the place of departure for the immediate purpose of loading onto the transport vehicle or other means of conveyance to start transit, and continues during the ordinary course of transit.

At the same time, it stipulates that insurance coverage terminates when unloading from the transport vehicle or other conveyance is completed at the final warehouse or storage location.

For ordinary cargo, the structure is relatively clear: it is transported by truck, rail, ship, or other means, and unloaded at the final warehouse.

However, in cases where automobiles or construction machinery are driven under their own power, the insured cargo itself acts as the means of transport, making it difficult to directly apply the typical concept of “cargo loaded onto a transport vehicle.”

Moreover, upon arrival at the final warehouse, there may be no unloading activity involving removing the vehicle from other means of transport.

For these reasons, the standard ICC insurance period provisions may leave interpretive uncertainties regarding whether self-driving or towing movements are included within the ordinary course of transit and at which point coverage terminates.

The Drive Away Clause is added to formally supplement this unclear phase and treat the designated self-driving or towing segment as covered under the marine cargo insurance.

Need to Confirm the Exact Wording of the Drive Away Clause

The Drive Away Clause is not a provision incorporated under the same name or content within the standard texts of ICC(A), ICC(B), or ICC(C).

It is added as a special clause, additional condition, or endorsement depending on the insurer, the insurance contract, or the type of cargo.

An example of wording used in actual practice provides coverage continuation according to the underlying insurance contract while automobiles, trucks, tractors, or similar vehicles move under their own power or by towing to the final warehouse at the destination.

At the same time, damage to persons resulting in death or injury and damage to property other than the insured cargo are explicitly excluded.

However, not all contracts use identical wording.

Items to Confirm	Contents to Check	Issues if Wording Is Unclear	Practical Response
Insured Cargo	Scope including Automobiles, Trucks, Tractors, Trailers, Construction Machinery, etc.	Some vehicle types or machinery may not be covered by the clause.	Cross-check the cargo details with the exact insured objects in the formal clause.
Method of Movement	Extent of coverage for self-propelling, towing, piloting, or transported load movements	Coverage may be limited to towing only or self-propulsion only.	Declare all intended movement methods in advance.
Starting Point	Whether coverage starts from the vessel’s side, port yard, CY, bonded area, or a designated place	There could be coverage gaps between discharge and the beginning of self-propelled movement.	Confirm the starting point based on the transit schedule.
End Point	Meaning of Final Warehouse, Place of Storage, Named Destination, etc.	Uncertainty whether locations such as maintenance shops, inspection sites, or sales outlets are considered final destinations.	Align the insured destination on the policy with the actual delivery point.
Covered Risks	Whether the clause follows the underlying ICC conditions or independently adds risks like collisions during self-driving	The Drive Away Clause may merely extend the transit segment without broadening the scope of insured risks.	Review the underlying conditions and the special clause as a single combined document.
Third-Party Damage	Explicit exclusions of bodily injury, damage to other vehicles, buildings, road facilities, etc.	There may be mistaken assumptions that marine cargo insurance covers third-party accidents.	Arrange separate automobile and liability insurance for third-party risks.
Driving Conditions	Requirements regarding driver qualifications, permits, distance, route, speed, or time of day	There may be issues related to clause provisions or warranty violations.	Notify the insurer of the planned conditions in advance.

It is necessary to verify the full text actually incorporated into the policy, rather than judging only by the label “Drive Away Clause included.”

Related ICC 2009 Clauses

Clause	Main Content	Relationship with Drive Away Clause	Points to Confirm
Clause 1	Defines the insured perils under applicable ICC(A), ICC(B), or ICC(C).	The Drive Away Clause may only specify the section involved, while the insured perils follow the underlying terms.	Confirm how collisions, overturns, or contacts during self-driving are treated under the underlying terms.
Clause 4.1	Excludes damage caused intentionally by the assured.	Check the relationship with intentional reckless driving or deliberate damage.	Avoid confusing mere negligence with intentional acts.
Clause 4.2	Excludes normal leakage, normal weight or volume loss, and ordinary wear and tear.	Involves the distinction with normal wear such as tires, brakes, batteries, etc.	Confirm whether damage results from an accident or normal wear.
Clause 4.4	Excludes damage caused by inherent defects or qualities of the insured cargo.	Check relationship with pre-existing mechanical faults, corrosion, deterioration, or structural weakness.	Review pre-accident inspection, maintenance records, and existing damage.
Clause 4.5	Excludes damage arising from delay.	Check the relation to delivery delays due to inability to drive, loss of business, or lost sales opportunities.	Delineate physical damage to the vehicle itself from delay-related damage.
Clause 8.1	Defines the ordinary course of transit and basic start and termination of insurance.	Forms the basis for considering whether self-driving or towing is included in the ordinary course of transit.	Confirm the purpose of movement, final warehouse location, and whether there is diversion to storage or distribution.
Clause 8.2	Specifies termination of cover when forwarding to a different destination after discharge.	Relates to self-driving to unexpected alternate warehouses or different sales destinations.	Check destination changes and notification to the insurer.
Clause 8.3	Sets continuation during delays beyond assured’s control, route changes, forced unloading, reloading, or transshipment.	Differentiates reasonable changes due to port circumstances from voluntary movements for other purposes by the assured.	Confirm reason for change, instructing party, and notification to insurer.
Clause 16.1	Requires reasonable measures to prevent or reduce damage.	Relates to moving damaged vehicles, preventing secondary accidents, and removal from the road.	Confirm necessity of measures, costs involved, and notification to insurer.
Clause 16.2	Requires protection of rights against carriers, warehousemen, and other third parties.	Involves accident notification to drivers, land carriers, towing operators, or warehouse operators.	Manage notification deadlines, reservation of rights, and documentation.

Cargo Prone to Coverage

Cargo	Main Means of Movement	Situations Where Drive Away May Be an Issue	Pre-Check Items
New, Used, and Imported Vehicles	Self-driving, carrier loading	When moving from port yard to storage yard, inspection site, or designated warehouse	Registration, temporary license plates, driver, travel route, existing damage
Trucks, Buses, Commercial Vehicles	Self-driving, towing, loading	When moving to vehicle storage or bodywork factory after discharge	Vehicle weight, dimensions, driving qualifications, brakes and tires
Chassis and Trailers	Towing	When tractor head tows from the port to final yard	Coupling device, kingpin, landing gear, lights, tow vehicle
Tractors and Agricultural Machinery	Self-driving, towing, low-bed loading	When moving from port or warehouse to farm, maintenance site, or storage location	Road travel permissibility, speed, width, tires, and operator
Forklifts	Self-driving, loading	When self-driving within port or warehouse premises to designated storage location	Operating area within premises, surface conditions, slope, handling equipment, driving qualifications
Construction Machinery and Heavy Equipment	Self-driving, towing, low-bed loading	When moving short distances from port yard to adjacent storage location	Road travel permissibility, crawler tracks, undercarriage, working equipment, weight
Special Vehicles and Work Vehicles	Self-driving, towing	When moving to inspection site, modification factory, or final delivery location	Special vehicle traffic permits, dimensions, weight, escort vehicle, route
Self-Propelled Machinery and Equipment	Self-driving, remote operation, towing	When moving from ship side or yard to pre-installation storage location	Operation method, travel speed, road surface load capacity, manufacturer instructions

What is important is not that these are insured as vehicles under road traffic laws, but primarily that they are internationally transported as cargo.

The Drive Away Clause provides a framework to organize limited self-driving or towing performed as part of that cargo transportation process.

Differences Between Drive Away, Towing, and Loaded Transport

Category	Description	Typical Example	Key Insurance Issues	Main Supporting Documents
Drive Away	The insured cargo moves under its own engine or drive mechanism.	Imported used truck driving from the port yard to a designated warehouse	Whether it is part of cargo transportation, vehicle usage, or a Drive Away applicable segment	Movement instructions, route, driver, vehicle condition, accident site
Towing	The insured cargo is moved while being pulled by another vehicle.	Moving chassis, trailer, or broken-down vehicle with a tow truck	Towing method, coupling section, towing vehicle, applicable segment, and cause of accident	Towing instructions, coupling photos, inspection records, towing contract
Loaded Transport	The insured cargo is loaded onto a carrier truck, low-loader, or trailer.	Loading imported cars onto a carrier truck for transport to a warehouse	Whether it is ordinary domestic cargo transport and if loading and securing are appropriate	Waybill, loading photos, securing records, land transport contract
On-site Movement	Short-distance movement within ports, CY, warehouses, or bonded areas.	Self-driving from the offloading point to a storage section within the same yard	Whether it is part of ordinary cargo handling or has shifted to storage or usage	On-site instructions, yard map, work records, purpose of movement
Test Drive	Driving to check performance, maintenance status, or pre-sale condition.	Conducting a test run on public roads or within premises after maintenance	Whether it has shifted from cargo transportation to vehicle usage	Test drive instructions, maintenance records, mileage, arrival records

Distinguishing Between Part of Cargo Transportation or Vehicle Usage

Classification	Purpose of Movement	Movement Section	Insurance Perspective	Verification Documents
Movements Often Considered Part of Cargo Transportation	Movement after discharge to deliver to the final warehouse, storage location, or designated delivery point shown on the document	From port yard, bonded area, CY etc. to a reasonable final destination	If conditions of the Drive Away Clause are met, it is considered an extension of cargo transportation.	Transportation instructions, documents, delivery location, planned route, accident location
Regular Loaded Transport	Movement involving loading onto a carrier car or flatbed vehicle and transporting to a storage location	From port to domestic warehouse, service workshop, or sales base	May be regarded as regular land cargo transportation rather than Drive Away.	Land transport arrangement documents, waybills, loading photos, delivery records
Movement to Inspection Site	Movement to undergo customs, statutory inspection, or import procedures	Reasonable route from port via designated inspection site to final warehouse	Check whether this is a necessary process in the ordinary course of transit or provided for in the clause.	Inspection reservation, transport plan, declaration to insurance company
Test Driving and Performance Confirmation	Movement to verify driving performance, repair status, or sales potential	Test drives after warehouse arrival, around sales locations, test courses, etc.	May be treated as vehicle usage separated from the ordinary course of cargo transportation.	Driving purpose, maintenance records, arrival records, driving distance
Commercial Operation and Business Use	Driving for transport, construction, agricultural work, or other intended uses	Commercial routes, construction sites, farms, etc.	Handled as vehicle operation/use risk rather than cargo insurance.	Business commencement records, user information, operation records, separate insurance
Delivery to Sales Destination	Driving to hand over the vehicle to the purchaser as fulfillment of the sales contract	From storage or sales outlet to final purchaser	Confirm whether it matches the final destination on the document or if insurance coverage has already terminated.	Sales contract, delivery instructions, documents, handover records
Route Deviation or Movement Outside Purpose	Private use, unscheduled detours, or movements for other purposes	Outside designated routes, unscheduled warehouses, tourism, or private use	May fall outside the clause’s covered sections and ordinary course of transit.	GPS data, driver testimony, driving instructions, accident location
Re-movement After Termination of Insurance Period	Movement again after arrival at final warehouse for maintenance, sales, or separate storage	Movement to another warehouse, service workshop, or sales destination after arrival	Coverage under ICC Clause 8 or Drive Away Clause termination may have been reached.	Arrival records, unloading/receipt records, re-movement instructions

The mere fact of short distance from port to warehouse does not determine coverage under marine cargo insurance. Movement purpose, applicable clause, destination on the document, ordinary route, and termination of insurance should be confirmed.

ICC 2009 Clause 8 and Insurance Period

Under ICC 2009 Clause 8, insurance continues during the ordinary course of transit and terminates at the earliest of the following events.

Clause	Reason for Termination of Insurance	Drive Away Confirmation	Notes
Clause 8.1.1	When unloading from the transport vehicle at the final warehouse or final storage location indicated as the destination on the policy is completed	In the case of drive away, confirm arrival at the final warehouse or the termination point specified in the official clauses.	Since drive away usually involves no unloading in the usual sense, the wording of the Drive Away Clause is important.
Clause 8.1.2	When unloading is completed at an alternative warehouse used for storage, sorting, or distribution outside the ordinary course of transit	Confirm whether the cargo is transferred to a temporary storage facility or a yard for distribution/sales.	Even if named a “temporary warehouse,” if the actual use is for distribution or storage outside the ordinary course of transit, it may be considered the termination point.
Clause 8.1.3	When the insured decides to use the transport vehicle, conveyance, or container for storage outside the ordinary course of transit	Confirm the connection with cases where the vehicle itself is stored or held idle for an extended period.	Distinguish between reasonable transport waiting and conversion for storage purposes.
Clause 8.1.4	Sixty days after unloading is completed from the vessel at the final port of discharge	Use this as the upper limit in cases where drive away from the port is delayed.	The 60-day period is not always guaranteed; if other termination reasons occur earlier, insurance ends at that point.
Clause 8.2	When cargo is first moved to transfer to a location different from the originally intended destination	Check when the destination changes to another warehouse, sales location, or factory.	Ensure unauthorized relocation to a destination different from the original contract is not initiated.
Clause 8.3	During delays, route changes, forced unloading, etc., beyond the insured’s control, insurance continues until the prescribed termination point	Distinguish port closures, roadblocks, forced movements, etc., from voluntary relocation outside the intended purpose.	Notify the insurer promptly when circumstances change.

Even if the self-drive and towing segments are explicitly stated in the Drive Away Clause, if test drives or further moves occur after arrival at the final warehouse, insurance coverage may already have ended.

Also, just because it is within 60 days after unloading from the vessel does not mean that all damages occurring during drive away are necessarily covered.

Damages Considered for Coverage

The core focus of the Drive Away Clause is physical damage sustained by the insured cargo, specifically vehicles or machinery.

Type of Incident	Damage to Insured Cargo	Main Points to Verify	Notes
Collision or Contact While Driving	Damage to body, bumper, cabin, lights, frame, etc.	Covered segment, cause of accident, driver, route, and underlying conditions	Damage to other vehicles is handled separately as third-party liability.
Overturning or Falling While Driving	Damage to body, cabin, working device, running gear, etc.	Road surface, speed, vehicle condition, cargo load, operation method	Causality with pre-existing issues or operator error should be confirmed.
Detachment While Being Towed	Damage to frame, axle, coupling, exterior, and underside	Towing method, coupling device, towing vehicle, and pre-inspection	Separate from damage to the towing vehicle.
Contact Within Port or Yard	Damage to side, roof, mirrors, working devices, etc.	Internal route, guidance, work instructions, and surveillance footage	Confirm whether it is a cargo handling accident or a driving accident.
Overturning While Being Towed	Extensive damage to chassis, trailer, machinery, etc.	Speed, curve, center of gravity, connection status, and road surface	Verify appropriateness of towing method and carrier liability.
Secondary Damage After Accident	Damage caused by roadside abandonment, rainwater, theft, additional contact, etc.	Damage mitigation measures, removal methods, storage location	Confirm reasonable measures based on Clause 16.

The actual coverage scope is determined not only by the Drive Away Clause but also by ICC(A), ICC(B), ICC(C), vehicle-specific conditions, exemptions, deductibles, and warranties.

Distinguishing Damage to Insured Cargo and Third-Party Liability

Type of Damage	Typical Examples	Main Insurance to Check	Practical Notes
Physical Damage to the Insured Cargo Itself	Damage caused by collision or overturning of imported cars, trucks, or construction machinery	Marine cargo insurance, Drive Away Clause	Confirm the applicable transit section, purpose of movement, cause of accident, and insurance period.
Damage to Third-Party Vehicles	Collision with another vehicle during self-propelled movement	Automobile insurance, property damage liability insurance	Such damage is normally not covered under marine cargo insurance.
Damage to Third-Party Facilities and Equipment	Damage to fences, buildings, guardrails, or port facilities	Property damage liability insurance, liability insurance	Notify the facility owner of the accident and secure evidence.
Injury to Third Parties	Injury to pedestrians, drivers of other vehicles, or workers	Automobile insurance, bodily injury liability insurance	Confirm mandatory insurance required by local laws and regulations.
Injury to Drivers or Workers	Injury to the driver or guide during self-propelled or towing operations	Workers’ compensation insurance, personal accident insurance, employer’s liability insurance	Handle separately from physical damage to the insured cargo itself.
Delivery Delay or Business Loss	Delay in business start due to accident vehicles missing delivery deadlines	Check for delay loss insurance, business interruption insurance, etc.	Losses caused solely by delay generally require separate confirmation beyond standard cargo insurance.

The Drive Away Clause generally does not substitute for automobile liability insurance.

Damages Requiring Careful Verification

Damage Type	Reason for Careful Verification	Relevant Conditions	Main Documentation
Normal Wear and Tear	Normal wear such as tires, brakes, and batteries differs from accidental physical damage.	ICC 2009 Clause 4.2	Maintenance records, mileage, pre-accident photos, condition of parts
Pre-existing Defects Causing Breakdown	Issues with the engine, steering, brakes, or coupling components prior to the accident may be the cause.	ICC 2009 Clause 4.4, Vehicle-specific conditions	Pre-export inspection, import inspection, maintenance records, survey
Damage Due Only to Mechanical or Electrical Failure	Internal failures without external accident involvement may be subject to special deductibles or vehicle-specific conditions.	Mechanical and electrical failure conditions on the policy	Diagnostic records, error codes, disassembly reports, accident circumstances
Test Driving or Commercial Operation	The vehicle may have shifted from cargo transport to use as a vehicle.	Drive Away Clause, ICC 2009 Clause 8	Driving purpose, arrival records, test drive instructions, operational logs
Movement Outside of Intended Purpose or Route	The transport may have deviated from the policy’s reasonably planned transit route.	Drive Away Clause, destination indicated on the policy	GPS data, planned route, driver testimony, accident location
Re-movement After Termination of Insurance	The insurance may have ended upon arrival at final warehouse or conversion to storage/distribution.	ICC 2009 Clauses 8.1.1 to 8.1.3	Receipt, time of arrival, re-movement instructions, storage records
Dangerous Acts Due to Willful Conduct	Damage caused intentionally by the insured is generally excluded.	ICC 2009 Clause 4.1	Police records, driving instructions, video footage, accident investigation
Accidents Involving Unlicensed or Unauthorized Operation	Local laws, third-party liability, other insurance, and special conditions may be significantly affected.	Applicable laws, Warranty, special conditions	Licenses, registration, driving permits, police records

The mere fact of unlicensed driving, unregistered vehicle operation, or violation of traffic permits cannot uniformly determine conclusions under marine cargo insurance.

The details of violations, causal link to the accident, presence or absence of intent, formal clauses, Warranty, and applicable laws should be verified.

Vehicle Condition Checks Before Self-Driving or Towing

Check Point	Main Elements to Inspect	Relation to Accidents	Documentation
Vehicle Exterior	Dents, scratches, rust, cracks, pre-existing deformations	Distinguishes between pre-existing damage and new damage.	Photos from four directions, close-ups of damage, Condition Report
Engine and Drive System	Start-up, abnormal noises, warning lights, oil leaks, operability	Checks for internal faults or pre-existing deficiencies.	Start-up videos, diagnostic records, inspection checklists
Brakes	Braking function, warning lights, air pressure, parking brake	Important for confirming causes of collisions or run-away accidents.	Inspection records, test results, maintenance history
Tires and Suspension	Air pressure, wear, cracks, wheels, suspension	Checks relation to blowouts, overturning, or loss of steering control.	Tire photos, manufacture year, measurement records
Steering	Steering operation, play, oil leaks, warning indicators	Checks relation to lane deviation or collision causes.	Inspection records, driver’s report
Lights and Warning Devices	Headlights, brake lights, turn signals, horn	Related to road safety and third-party accidents during public road use.	Operational photos, inspection checklists
Coupling Devices	Kingpin, coupler, chains, brake hoses	Related to causes of detachment or rollover during towing.	Photos before and after coupling, fastening confirmation sheet
Fuel and Fluids	Fuel quantity, oils, coolant, leaks	Checks relation to fire risk, mechanical failure, and road contamination.	Inspection checklists, photos of leak locations

The fact that a vehicle can be driven under its own power does not necessarily mean it is in a condition to be operated safely and legally to its destination.

Standard Five Classifications of Freight Forwarder Involvement

The five classifications in this article are not classifications established by law or the entire industry but are analytical frameworks used in this series to organize the scope of freight forwarder involvement.

Standard Five Classifications	Main Involvement in the Drive Away Section	Focus of Liability Assessment	Main Reference Documents
Simple Intermediary	Acts as liaison between the cargo owner and land transportation companies, towing companies, insurance companies, etc.	Whether the role went beyond mere intermediation to guarantee coverage, vehicle condition, or driving safety	Quotation, emails, notices, intermediation records
Cargo Transportation Service Provider	Provides cargo transportation services including self-driving and towing sections.	Contracted sections, land transportation arrangement, driver selection, accident section, and notification obligations	Transportation contract, shipping instructions, booking, operation records
NVOCC / House B/L Issuer	Issues the House B/L and is involved as the contracting party for international transportation.	Destination on House B/L, liability sections, liability limits, and notification deadlines	House B/L, Master B/L, in-gate instructions, accident notifications
Door-to-Door Single Contractor	Assumes overall responsibility for shipment, unloading, self-driving/towing, storage, and final delivery.	Scope of the aggregated contract, subcontractor management, handover between processes, and insurance arrangement	Comprehensive quotation, specifications, subcontract contracts, process schedule
Agent/Coordinator for Specific Operations	Coordinates specific tasks such as drivers, driving permits, surveys, repairs, or accident communications.	Scope of delegation, verification obligations, authority to issue instructions, and final decision maker	Delegation records, verification requests, inspection reports, accident reports

Contracting Carrier and Actual Carrier are concepts indicating legal or contractual status and are not alternative classifications replacing the Standard Five Classifications in this article.

Operational tasks such as driving, towing, maintenance, inspection, loading, lashing, or surveying do not themselves constitute a sixth classification.

Example 1: In Case of a Collision Accident While Drive-Away of an Imported Used Truck

Assume an imported used truck has been discharged from the vessel and was being driven from the port yard to the warehouse designated on the insurance policy, when it collided with another vehicle on the road, damaging the front of the truck.

First, it should be confirmed whether the drive-away segment is included within the section specified by the Drive Away Clause, whether it followed a reasonable route to the designated warehouse, and whether the insurance coverage had not yet terminated.

Next, distinguish between the damage to the truck itself and the damage to the other vehicle.

The physical damage to the insured cargo, i.e., the truck itself, is examined based on the Drive Away Clause and the underlying policy terms.

Repair costs for the other vehicle and any injuries to the other driver are handled under automobile insurance or liability insurance, not marine cargo insurance.

Additionally, if there is a possibility that brake defects or tire wear existed prior to the accident, inspection records, maintenance logs, and survey reports before the accident should be reviewed.

Even in the same accident, damage to the insured cargo itself and third-party liability are processed separately under different insurance relationships.

Example 2: Disconnection During Towing of Construction Machinery

Suppose that while towing imported construction machinery from the port yard to a nearby storage location, the coupling device detached, causing the machinery to fall beside the road and resulting in damage to the frame, undercarriage, and working equipment.

In this case, it should be confirmed whether the towing segment is covered under the Drive Away Clause and whether the towing method complied with the official clause terms and the transportation plan.

The pre-accident condition of the coupling device, pre-towing inspections, records of the towing operator’s work, and road surface conditions at the accident site are also important factors.

If cracks or significant wear existed at the coupling point before the accident, an investigation should determine whether the primary cause was an accidental external event or a pre-existing defect.

If damage occurred to road infrastructure or other third-party property, the cargo damage to the construction machinery itself should be distinguished from third-party property damage.

In accidents during towing, not only the relevant segment but also the coupling method, the towing party, and the pre-accident condition are central to assessing the damage.

Example 3: Accident Occurring During Test Drive After Arrival at Final Warehouse

Suppose an import vehicle successfully drives itself from the port to the designated warehouse, with a receipt record created upon delivery, and then while conducting a test drive around the warehouse area for performance verification prior to sale, it is involved in a collision.

In this case, the self-driving from the port to the designated warehouse could be covered under the Drive Away Clause as part of the cargo transportation.

However, if the insurance terminates upon arrival and delivery to the designated warehouse, the subsequent test drive may be treated as vehicle use or a pre-sale inspection, rather than cargo transit.

Documents to be verified include the warehouse arrival time, delivery receipt, key handover, person who authorized the test drive, purpose of the test drive, driving distance, and the final destination as stated on the insurance policy.

Even when a Drive Away Clause exists, coverage does not automatically extend to test drives conducted after arrival at the final warehouse.

Although the action of driving is the same, the purposes and insured periods differ between delivery into the final warehouse and the test drive conducted thereafter.

Cases Prone to Issues in Practice

Case	Main Causes / Disputes	Reference Materials	Key Points for Judgment	Initial Response
Collision while driving from port to warehouse	Applicable section, designated route, driver negligence	Policy, driving instructions, GPS, police records	Whether it is part of cargo transportation or involves third-party damages	Record site photos and vehicle damage.
Chassis rollover while towing	Connection, speed, center of gravity, road surface conditions	Towing records, connection photos, accident reports	Confirm towing method and pre-existing defects.	Preserve coupling parts.
Contact with wall inside port premises	Insufficient guidance, blind spots, internal routes	On-site video, work instructions, driver testimony	Confirm whether it occurred during cargo handling or driving section.	Secure surveillance footage promptly.
Tire burst while driving	Impact from accident, wear, deterioration, air pressure	Tire photos, manufacture year, inspection records	Determine if accidental or due to normal wear or pre-existing deterioration	Preserve damaged tire.
Collision caused by brake failure	Pre-existing defects, insufficient maintenance, pre-accident inspection	Maintenance records, diagnostics, warning light logs	Check relation with Clause 4.4 and others.	Conduct survey before repairs.
Accident off designated route	Movement for other purposes, personal use, instruction changes	GPS, instruction documents, call logs	Determine if outside the ordinary course of transit	Record reason for route deviation.
Accident during test drive after warehouse arrival	Termination of insurance, transition to vehicle use	Receipt, arrival records, test drive instructions	Whether Drive Away coverage section had ended	Verify arrival time and test drive start time.
Additional damage during removal after accident	Damage mitigation, removal method, storage method	Removal instructions, photos, contractor reports	Whether reasonable damage mitigation measures were taken	Notify insurance company promptly.

Drive Away Clause Application Determination Flow

1. Identify the date and time of the accident, the location where it occurred, the starting point of self-driving or towing, and the originally planned final destination.
2. Confirm whether the purpose of the movement at the time of the accident was delivery to the final warehouse, storage location, inspection site, or designated delivery point, or whether it was a test run, commercial operation, delivery to a sales destination, or movement for purposes other than intended.
3. Review the marine cargo insurance policy and the formal wording of the embedded Drive Away Clause, verifying the applicable vehicle types, relevant sections, scope of self-driving or towing, operating conditions, and exclusions against the accident details.
4. Check the underlying ICC(A), ICC(B), or ICC(C) to determine if the cause of the accident falls within the insured risks under the applicable conditions or if there may be exclusions such as those in Clause 4 or others.
5. Confirm the insurance termination point under ICC 2009 Clause 8 and the Drive Away Clause to verify whether the insurance had ended before the accident due to arrival at the final warehouse, delivery, storage, or diversion for distribution.
6. Separate the physical damage to the insured vehicle or machinery itself from third-party personal injury, damage to other vehicles, buildings, road facilities, etc., and check the insurance coverage applicable to each.
7. Examine pre-accident photos, Condition Reports, maintenance records, and pre-self-driving/towing inspection records to distinguish new damage caused by the accident from normal wear and tear, pre-existing faults, mechanical failures, or characteristics inherent to the cargo.
8. Verify the qualifications, affiliations, work instructions, travel route, GPS data, police records, and accident scene documents of the driver or towing operator to clarify the cause of the accident and the roles of involved parties.
9. Implement reasonable measures for damage prevention and mitigation under ICC 2009 Clause 16.1, such as roadside removal of the accident vehicle, prevention of secondary accidents, countermeasures against rainwater and theft, and secure storage.
10. Check the notification deadlines for land transport operators, towing operators, Actual Carriers, warehouse operators, and other parties, and provide accident notification and reservation of rights in accordance with ICC 2009 Clause 16.2.
11. Organize vehicle damage photos, repair estimates, survey reports, residual value, third-party damage documentation, and arrival/delivery records.
12. Summarize the applicable section of the Drive Away Clause, insurance period, cause of the accident, damage amount to the insured cargo, and segregation results of third-party damages, then submit to the insurer or insurance agent.

Documents to Check in Case of an Accident

Document Type	Main Documents	Purpose of Confirmation	Practical Notes
Insurance Documents	Cargo Insurance Policy, Drive Away Clause, ICC, Special Clauses, Warranties	Confirm the insured cargo, sections, risks, exclusions, and termination of cover.	Review the full text, not just the clause names.
Purpose of Movement	Shipping Instructions, In-gate Instructions, Inspection Appointments, Delivery Destination Information	Confirm whether the movement is cargo transport or for test drive/sales use.	Convert verbal instructions into written form.
Route Taken	Planned Route, GPS Data, Maps, Passage Permits, Accident Location	Check if the section is designated and whether the route is reasonable.	Document reasons for any route changes outside the plan.
Vehicle Condition	Pre- and Post-accident Photos, Inspection Sheets, Maintenance Records, Condition Reports	Differentiate between new damage and pre-existing defects.	Preserve the actual vehicle condition before repairs.
Driver/Towing Operator	Name, Affiliation, Licenses, Qualifications, Work Instructions	Confirm the party responsible for operations, qualifications, and instruction relationships.	Also verify third-party liability insurance.
Accident Details	Police Reports, Accident Reports, On-site Photos, Videos, Witness Statements	Confirm the accident cause and third-party damages.	Be aware of retention periods for surveillance footage.
Damage Documentation	Repair Estimates, Parts Lists, Survey Reports, Residual Value	Verify the scope of damage and reasonable repair costs.	Separate pre-existing repairs and improvement expenses.
Third-party Damages	Opposing Vehicle, Personal Injury, Facility Damage, Invoices, Accident Notifications	Distinguish cargo damage from liability for compensation.	Avoid mixing these with cargo insurance claims.
Arrival and Delivery	Receipts, Warehouse Entry Records, Handover of Keys, Start of Storage Records	Confirm termination of cover under ICC Clause 8 and the Drive Away Clause.	Clearly specify arrival time and time of further movement.
Notification to Third Parties	Accident Notices, Reservation of Rights, Deadline Management Sheets	Confirm rights preservation based on Clause 16.2.	Manage deadlines separately for each notified party.

Checklist for Freight Forwarder Practical Use

Verification Situation	Party to Verify With	Items to Verify	Actions If Issues Arise
At Contract Acceptance	Cargo Owner, Importer, Exporter	Whether the cargo is self-propelled/tractable vehicles such as automobiles, chassis, or construction machinery	Do not handle as regular cargo; confirm the movement method and transport segment.
At Insurance Arrangement	Cargo Owner, Insurance Company, Insurance Agent	Official wording of the Drive Away Clause, applicable goods, transport segment, risks, and exclusions	Pre-declare the planned self-propelled or towing operations.
At Insurance Period Confirmation	Insurance Company, Insurance Agent	ICC 2009 Clause 8, final warehouse, treatment at arrival, unloading, and delivery	Obtain written confirmation of termination of insurance for self-propelled transport.
At Transportation Planning	Cargo Owner, Land Transport Operator, Warehouse Operator, Local Agent	Final destination, route, distance, purpose of movement, driver or towing operator	Record transport instructions, route, and in-gate destination.
At Regulatory Compliance Check	Local Agent, Land Transport Operator, Specialist	Registrations, licenses, transit permits, temporary number plates, compulsory insurance	Do not commence transport until lawful operating conditions are met.
Before Self-Propelled or Towing Operation	Cargo Owner, Operations Staff, Driver, Maintenance Personnel	Exterior, engine, brakes, tires, lighting, couplings, undercarriage	Maintain photo, video, and inspection records.
At Third-Party Liability Confirmation	Cargo Owner, Land Transport Operator, Driver, Insurance Company	Automobile insurance, third-party bodily injury/property damage liability insurance, carrier’s liability insurance	Arrange necessary insurance separately from marine cargo insurance.
At Accident Occurrence	Driver, Land Transport Operator, Police, Warehouse Operator, Local Agent	Location, time, route, cause, vehicle damage, third-party damage	Secure site photos, police reports, accident reports, and GPS data.
At Damage Mitigation	Insurance Company, Surveyor, Removal Contractor	Removal from road, storage, secondary accident prevention, and additional damage	Confirm relationship with Clause 16.1.
At Insurance Claim	Insurance Company, Insurance Agent, Surveyor	Damage to insured cargo, applicable segment, insurance period, and accident cause	Cross-check with the Drive Away Clause and accident documentation.
At Third-Party Claim	Land Transport Operator, Towing Operator, Actual Carrier, Warehouse Operator	Accident cause, liable party, notification deadlines, liability limits	Preserve rights according to Clause 16.2.
At Liability Settlement	Cargo Owner, Insurance Company, Land Transport Operator, Maritime Lawyer	Marine cargo insurance, automobile insurance, liability insurance, and carrier liability	Distinguish and organize insured cargo damage and third-party liability separately.

Common Misunderstandings

Misunderstanding	Actual Consideration	Points to Confirm
If the distance from the port to the warehouse is short, cargo insurance automatically applies.	Check the Drive Away Clause, purpose of the movement, covered segment, and insurance period rather than distance.	Confirm the formal clause, designated route, and final destination.
If there is a Drive Away Clause, all accidents during self-driving are covered.	The underlying ICC conditions, deductibles, warranties, and formal clauses apply.	Verify covered perils, driving conditions, and exclusions.
Third-party accidents are also covered under cargo insurance.	Marine cargo insurance primarily covers physical damage to the insured cargo itself.	Check automobile insurance, as well as personal and property liability insurance.
If it can be self-driven, the vehicle is in a safely drivable condition.	Even if drivable, there may be defects in brakes, tires, lighting, or couplings.	Confirm pre-drive inspections, maintenance records, and photographs.
If there is a Drive Away Clause, trial runs are also covered.	Trial runs may be regarded as vehicle use rather than cargo transportation.	Confirm arrival time, purpose of driving, and termination of insurance.
Any movement within 60 days after discharge from the vessel is covered.	ICC Clause 8.1.4 applies the earliest termination among various termination events.	Confirm final warehouse arrival and whether the cargo is diverted to storage or distribution.
If there is a violation of laws such as driving without a license, cargo insurance automatically excludes coverage.	Individually check formal clauses, intentional acts, causal relationships, warranties, and applicable laws.	Verify license, permits, cause of the accident, and insurance conditions.
All breakdowns during self-driving qualify as transportation accidents.	Distinguish between normal wear and tear, pre-existing defects, inherent flaws, or internal failures.	Confirm Clause 4.2, Clause 4.4, and vehicle-specific conditions.
Even after arriving at the final warehouse, cargo insurance continues for some time.	Insurance may terminate at arrival, unloading, handover, or diversion to storage.	Check Clause 8, receipt records, and the Drive Away Clause.
All driver negligence is handled under cargo insurance.	Separate damage to the insured cargo from the driver’s third-party liability.	Verify accident details, automobile insurance, and liability insurance.
If the freight forwarder handles accident response, it means they accepted responsibility.	Preserving evidence, notifying insurance, and arranging surveys are separate from admitting legal liability.	Clarify the purpose of arrangements and any reservation of liability.
If the clause is called Drive Away Clause, coverage content is the same.	Covered vehicles, segments, perils, and exclusions may vary by insurer and contract.	Confirm the formal wording incorporated in the policy.

Situations Requiring Consultation with Maritime Lawyers or Experts

• When there is a dispute over whether drive-away or towing constitutes ordinary course of transit or vehicle use
• When the termination of cover under ICC 2009 Clause 8 is contested
• When the applicable transit segments or vehicle types under the Drive Away Clause are unclear
• When the distinction from test driving, delivery, or non-purpose movement is in question
• When pre-accident poor maintenance or mechanical breakdown as cause of the accident is disputed
• When damages to insured cargo and third-party bodily or property damage claims overlap
• When total loss or severe damage occurs to high-value imported vehicles, commercial vehicles, or construction machinery
• When high-value claims are made against inland transporters, towing companies, or freight forwarders
• When local vehicle registration, road permission, compulsory insurance, or traffic laws become issues
• When accident notification deadlines, claim submission deadlines, or litigation deadlines are approaching

Practical Points

• The Drive Away Clause is a special clause that clarifies the self-driving or towing segments of vehicles and similar transport equipment shipped as cargo.
• The Drive Away Clause is usually added separately from the standard texts of ICC(A), ICC(B), or ICC(C).
• Because wording may vary by contract even under the same name, the full official clause text should be checked.
• ICC 2009 Clause 8 serves as the basis for determining the ordinary course of transit and the termination of insurance.
• It is necessary to distinguish whether the self-driving or towing segment involves delivery to the final warehouse, test driving, commercial operation, or handover.
• Even short-distance movements from port to warehouse are not automatically covered.
• The primary focus of marine cargo insurance is physical damage to the insured vehicles or equipment themselves.
• Personal injury or property damage to third parties should be separately confirmed under automobile insurance or liability insurance.
• Normal wear and tear, pre-existing defects, and inherent faults should be checked in relation to ICC 2009 Clause 4.2 and Clause 4.4.
• Being operable does not necessarily mean the vehicle can be driven safely and legally.
• Photos taken before accidents, inspection records, driving instructions, GPS data, and arrival records should be preserved.
• After an accident, damage mitigation and protection of third-party rights should be conducted in accordance with Clause 16.
• The freight forwarder should not determine insurance payment or liability, but should verify insurance conditions separately from the factual circumstances.

Summary

The Drive Away Clause is a special clause that clarifies the marine cargo insurance coverage period for vehicles such as automobiles, trucks, chassis, tractors, and construction machinery after they have been transported as cargo, specifically during the period when they are driven or towed from the discharge location to the final warehouse, storage site, or designated delivery point.

While ordinary cargo is transported loaded onto transport vehicles, in the case of self-propelled movement of vehicles, the insured cargo itself functions as the means of transportation.

Therefore, the ordinary course of transit defined by ICC 2009 Clause 8 and the concept of unloading at the final warehouse alone may not clearly define the self-propelled movement section and the termination of insurance.

The Drive Away Clause serves to supplement this section; however, clauses bearing the same name do not necessarily have identical content.

It is necessary to confirm the applicable vehicles, the scope of self-driving or towing, the starting and ending points, covered perils, exclusion of third-party damage, driving conditions, and the underlying ICC conditions.

If the self-driving or towing is a reasonable extension of cargo transport for the purpose of delivery to the final warehouse, it may be regarded as part of the cargo transit.

Conversely, trial runs, commercial operations, movements unrelated to delivery, post-sale handover, or repositioning after termination of insurance at the final warehouse may be treated as a transition from cargo transport to vehicle use.

Damage to the insured vehicle itself and third-party bodily injury or property damage should be handled separately.

Marine cargo insurance does not substitute for automobile insurance or third-party liability insurance for bodily injury and property damage.

Before self-driving or towing, the vehicle body, engine, brakes, tires, steering, lighting equipment, coupling parts, and undercarriage should be inspected, and pre-incident photos and inspection records should be preserved.

After an accident, the purpose of travel, route, accident location, driver identity, pre-accident condition, third-party damage, arrival and handover records, official clauses, and termination of insurance should be promptly confirmed.

Final insurance payments and liability determinations are made on a case-by-case basis considering the Drive Away Clause, applicable ICC clauses, vehicle-specific conditions, special clauses, insurance policy, cause of the accident, movement purpose, covered segment, insurance period, and supporting evidence.

If self-driving or towing of automobiles or similar vehicles is planned, or if an accident occurs, prepare the marine cargo insurance policy, the formal wording of the Drive Away Clause, travel plans, vehicle inspection records, and third-party liability insurance details, and consult with the insurer or an insurance agent specializing in marine cargo insurance for ocean carriage.

This article provides general information and does not determine the applicability of insurance coverage, claim payments, legal liability, legality of road use, or existence of third-party liability.