ICC(A) Terms and Conditions
Interlink編集部ICC(A) means the Institute Cargo Clauses (A), one of the principal sets of clauses widely used for marine cargo insurance.
It is commonly described in practice as an “All Risks” form of cover. Unlike ICC(B) and ICC(C), which primarily insure specified listed perils, ICC(A) is structured to provide broad protection against risks causing loss of or damage to the insured cargo, subject to the exclusions contained in the clauses.
However, “All Risks” does not mean that every loss is automatically recoverable. It is still necessary to determine whether the loss occurred during the insured transit, whether the claimant had an insurable interest at the time of loss, whether the loss can be shown to be fortuitous, and whether any exclusion applies, including ordinary loss or wear, insufficient packing, inherent vice, delay, unfitness of a vessel or container, war risks, or strikes risks.
Unless otherwise stated, this article primarily addresses ICC(A) 1/1/09. Actual insurance contracts may incorporate earlier clause versions, special clauses, additional exclusions, deductibles, commodity-specific terms or other amendments. The actual policy and incorporated clauses therefore remain controlling in an individual case.
Scope of This Article
| Item | What This Article Covers | What Other Articles Cover |
|---|---|---|
| Basic structure of ICC(A) | The relationship between broad risks cover and contractual exclusions | Marine Cargo Insurance explains the overall structure of cargo insurance |
| Differences from ICC(B) and ICC(C) | Differences in the approach to insured perils and scope of cover | ICC(B) and ICC(C) examine the listed perils under each form in detail |
| All Risks | Why the expression does not mean unlimited cover for every loss | All Risks examines common misunderstandings arising from the terminology |
| Insufficient packing and inherent vice | Why these issues may remain relevant even under ICC(A) | Insufficient Packing and Inherent Vice examine causation in greater detail |
| Delay | Why loss caused by delay remains a significant exclusion issue | Delay Damage examines consequential and economic loss in greater detail |
| War and strikes risks | Why such risks are not automatically included within ordinary ICC(A) | War Risks and Strikes Risks examine the separate clauses in greater detail |
| Duration and transit route | The basic operation of the Transit Clause and termination of cover | Insurance Period and Transit Route examine Warehouse-to-Warehouse cover in detail |
| Sum insured and amount of loss | Why the scope of ICC(A) is separate from the amount insured | Sum Insured examines insured value and calculation of the sum insured |
Purpose and Basic Structure of ICC(A)
ICC(A), ICC(B) and ICC(C) provide different levels of protection against transit risks. In practice, the selected form depends on factors such as the nature and value of the cargo, susceptibility to damage, mode and route of transport, premium, and the level of uninsured risk the cargo owner is prepared to retain.
The distinguishing feature of ICC(A) is that the analysis does not begin by asking whether the accident falls within a narrowly specified peril such as fire, stranding or collision. The first questions are whether loss of or damage to the insured cargo occurred during the insured period and whether any contractual exclusion applies.
Accordingly, the practical analysis under ICC(A) considers the existence and timing of the damage, the circumstances of the transit, the condition of the cargo before shipment, packing, the nature of the goods and the applicable exclusions. An inability to identify a precise named peril does not by itself establish that the claim is excluded, but an unexplained shortage or damage is not automatically payable either.
ICC(A) also deals with more than direct physical cargo damage. It contains provisions dealing with certain general average and salvage charges and, in relevant circumstances, liability arising under a Both to Blame Collision Clause.
Differences Between ICC(A), ICC(B) and ICC(C)
| Condition | Basic Coverage Structure | Typical Losses More Readily Considered | Key Issues to Confirm | Practical Position |
|---|---|---|---|---|
| ICC(A) | Broad protection against risks causing loss of or damage to cargo, subject to exclusions | Breakage, wet damage, theft, non-delivery, contamination, handling damage and shortage | General exclusions, packing, inherent vice, delay, duration, war and strikes risks | Frequently selected for machinery, components, finished goods and other cargo exposed to varied transit risks |
| ICC(B) | Primarily covers specified perils listed in the clauses | Fire, explosion, stranding, sinking, collision, certain water entry and earthquake-related risks | Whether the cause of loss falls within a listed insured peril | Broader than ICC(C) but narrower than ICC(A) |
| ICC(C) | Covers a more limited group of specified perils | Fire, explosion, stranding, sinking, collision and general average sacrifice | Whether breakage, theft, wet damage or shortage can be linked to an insured listed peril | A restricted form focused primarily on major transit casualties |
The widest condition is not automatically the best condition in every case. Cargo value, fragility, theft exposure, temperature sensitivity, packing, route, loss experience, premium and other underwriting terms should all be considered.
Requirements for Considering Cover under ICC(A)
| Item | What to Confirm | Why It Matters | Main Documents |
|---|---|---|---|
| Applicable wording | Version of ICC(A), special clauses, additional exclusions and commodity-specific terms | Two policies described as ICC(A) may not contain identical contractual protection | Policy, Certificate, Declaration and incorporated clauses |
| Insured cargo | Whether the damaged goods fall within the subject matter insured | A loss may fall outside the policy before the scope of ICC(A) even becomes relevant | Invoice, Packing List and insurance declaration |
| Insurable interest | Whether the claimant had an insurable interest at the time of loss | Insurable interest at the time of loss is relevant to recovery under ICC(A) | Sales contract, Incoterms, Invoice and policy documents |
| Duration | Whether the loss occurred during the insured transit | Broad risks cover does not extend a policy beyond its contractual duration | Pickup records, terminal records, B/L, release records and delivery records |
| Existence of loss or damage | Whether actual loss, breakage, wet damage, contamination or shortage occurred | The comparison between the pre-shipment and post-transit condition is fundamental | Photographs, delivery receipt, inspection records and Survey Report |
| Fortuity and causation | Whether the damage can be explained as a fortuitous transit loss rather than normal deterioration | ICC(A) does not mean that every deterioration or commercial loss is insured | Incident report, survey findings, temperature data and transit records |
| Exclusions | Whether Clauses 4 to 7 or other exclusions apply | The scope of ICC(A) must always be read together with its exclusions | Packing documents, cargo specifications, route information and cause evidence |
Principal Exclusions under ICC(A)
For practical purposes, understanding the exclusions is often more important than memorising examples of losses that may be covered. Common areas of dispute include ordinary loss, packing, inherent vice, delay, fitness of vessels or containers, war and strikes risks.
| Clause Area | Main Issue | Practical Meaning | Evidence to Review | Key Caution |
|---|---|---|---|---|
| General exclusions | Wilful misconduct of the Assured | Loss deliberately caused by the Assured is not treated as an ordinary fortuitous transit loss | Incident records, instructions and witness evidence | Do not confuse negligence with wilful misconduct |
| General exclusions | Ordinary leakage, ordinary loss in weight or volume, or ordinary wear | Normal and expected deterioration or reduction is treated separately from accidental loss | Shipment quantities, arrival quantities and commodity data | Distinguish ordinary reduction from abnormal leakage caused by an accident |
| General exclusions | Insufficient or unsuitable packing or preparation | Packing unable to withstand the ordinary incidents of the insured transit may create an exclusion issue | Packing specifications, pre-shipment photographs and lashing records | Confirm who packed the goods, when packing occurred and its relationship to attachment of cover |
| General exclusions | Inherent vice or nature of the cargo | Loss generated by the natural characteristics of the goods may be excluded | SDS, specifications, quality data and temperature or humidity records | Also consider whether an external event caused or materially contributed to the loss |
| General exclusions | Delay | Loss caused by delay is treated separately even where the delay follows an otherwise insured event | Vessel schedule, delay records, sales contract and loss calculation | Separate physical cargo damage from loss of market or other economic loss |
| General exclusions | Insolvency or financial default of vessel interests | The Assured's knowledge, or what should reasonably have been known, may become relevant | Contract records, notices and financial information | There are protections for certain good-faith purchasers receiving an assignment, so avoid blanket conclusions |
| Vessel or conveyance | Unseaworthiness or unfitness for safe carriage | A defect in a ship or container does not automatically establish the exclusion | Loading records, container condition and maintenance evidence | Knowledge, timing of loading and the identity of the person loading the cargo may be material |
| War risks | War, civil war, capture, seizure or restraint | Separate war-risk clauses must normally be reviewed | Policy, War Clauses and route information | Under the 2009 wording, piracy receives specific treatment within the war exclusion |
| Strikes and related risks | Strikes, riots, civil commotion, terrorism and politically motivated acts | Such risks are excluded from ordinary ICC(A) and require review of separate clauses | Policy, Strikes Clauses and incident information | Adding Strikes Clauses does not automatically insure loss caused merely by delay |
Insufficient Packing Does Not Mean Every Packing Defect Is Automatically Excluded
The packing exclusion under ICC(A) is more specific than the simple proposition that “bad packing is excluded.” It is necessary to consider whether the packing or preparation was insufficient or unsuitable to withstand the ordinary incidents of the insured transit, who performed the packing, when it was performed, whether it preceded attachment of the insurance, and whether the alleged deficiency caused the damage.
For this purpose, packing may also include stowage within a container. The issue may therefore extend beyond cartons or wooden cases to internal securing, lashing and weight distribution inside the container.
Conversely, where properly packed cargo is damaged by an abnormal and fortuitous impact during transit, the absence of major external damage does not by itself establish insufficient packing. The factual circumstances of the incident and the actual packing arrangement must be examined together.
Relationship with Inherent Vice
Inherent vice concerns damage arising from the natural characteristics of the cargo itself. Natural decay, fermentation, self-heating, evaporation, rust, mould and quality deterioration can raise this issue.
The result alone is not decisive. Food deterioration or rust may also be caused by an abnormal refrigeration failure, seawater entry, rainwater penetration or another external transit event.
Where both the nature of the cargo and an external event may have contributed, temperature records, pre-shipment quality, container condition, transit time and the timing of the damage should be reviewed to identify the effective cause of the loss.
Relationship with Delay
Loss caused by delay is a significant exclusion under ICC(A). Where the cargo remains physically undamaged but late arrival causes loss of market, contractual penalties, production stoppage, loss of a seasonal sales opportunity or reduction in market price, those losses must be distinguished from physical cargo loss or damage.
Importantly, the exclusion issue can arise even where the delay itself followed an event that would otherwise fall within insured risks.
It is therefore unsafe to assume that a ten-day delay following a marine casualty also makes ten days of lost profit recoverable under ICC(A). Physical damage to the goods and economic loss caused by late arrival must be analysed separately.
War Risks, Strikes Risks and Piracy
Ordinary ICC(A) does not automatically include the principal war and strikes-related risks. War, civil war, certain capture or detention, strikes, riots, civil commotion, terrorism and politically, ideologically or religiously motivated acts require examination of separate Institute War Clauses, Institute Strikes Clauses or other applicable endorsements.
There is an important point concerning piracy. Under ICC(A) 1/1/09, piracy is specifically excepted from the relevant capture and detention limb of the war exclusion. It is therefore inaccurate to state categorically that piracy is always excluded from ICC(A) merely because it appears to be a war-related risk. The actual policy wording, additional exclusions and route conditions must still be reviewed.
For cargo moving through conflict areas or high-risk waters, the label “ICC(A)” is therefore insufficient. War, Strikes, Terrorism, Sanctions and other special provisions should be reviewed at policy level.
Duration — Correctly Understanding Warehouse-to-Warehouse Cover
The duration of ICC(A) is commonly described as Warehouse-to-Warehouse cover, but this does not mean that cargo remains insured indefinitely whenever it is located in a warehouse.
Under ICC(A) 1/1/09, cover generally begins when the cargo is first moved at the place named in the insurance contract for the purpose of immediate loading onto the carrying vehicle or other conveyance to commence transit, and continues during the ordinary course of transit.
Cover may terminate when unloading is completed at the final warehouse or place of storage, when another warehouse is chosen for storage outside the ordinary course of transit or for allocation or distribution, when a vehicle or container is elected to be used for non-transit storage, or when the specified period after discharge from the overseas vessel at the final port expires, subject to whichever contractual termination event occurs first.
Accordingly, the statement that cargo is “always covered for 60 days after discharge” is inaccurate. Cover may terminate earlier if final delivery occurs or the cargo is placed into storage outside the ordinary course of transit.
Where the contract of carriage terminates unexpectedly or the Assured changes destination, prompt notification to the insurer and agreement on continuation of cover may be required.
ICC(A) Coverage Analysis Flow
- Identify the applicable wording.
Confirm the version of ICC(A), policy, Certificate, special clauses, additional exclusions and any War or Strikes cover. - Identify the insured cargo and claimant.
Confirm that the cargo falls within the insurance and that the claimant had an insurable interest when the loss occurred. - Establish the time and place of the loss.
Arrange pickup, terminal receipt, loading, discharge, release and final delivery in chronological order and determine whether the loss occurred during insured transit. - Establish actual loss or damage.
Use photographs, quantities, quality evidence, delivery remarks and inspection records to establish the difference between the pre-shipment and post-transit condition. - Analyse causation.
Consider whether impact, water entry, theft or another fortuitous event, packing, inherent vice or delay caused or contributed to the damage. - Test the exclusions.
Apply the general exclusions, vessel or container provisions, war exclusions and strikes-related exclusions in sequence. - Check additional clauses.
Refrigerated cargo, used machinery, dangerous goods and high-value cargo may be subject to additional commodity-specific conditions. - Mitigate the loss and preserve rights.
Prevent further damage and preserve claims against the shipping line, freight forwarder, warehouse, inland carrier and other potentially responsible parties. - Submit the evidence to the insurer or insurance intermediary.
The freight forwarder should organise facts and documentation rather than purport to make the final coverage determination.
The key discipline is not to begin with a conclusion such as “breakage is covered” or “packing is excluded.” The contract, duration and existence of loss should be established first, followed by causation and the exclusions.
Cases That Frequently Cause Practical Problems
| Case | Main Cause or Issue | Evidence to Review | Decision Point | Initial Action |
|---|---|---|---|---|
| Internal damage to precision machinery on arrival | Transit impact versus inadequate cushioning or securing | Pre-shipment photographs, packing specification, Shock Indicator, external condition and Survey Report | Consider both a fortuitous transit event and the packing exclusion | Preserve the unpacking condition and consider survey before repair or disposal |
| Wet damage inside a container | Seawater or rainwater entry versus condensation or cargo moisture | Container photographs, seal record, salt testing, damage pattern and weather data | Identify the source of moisture and distinguish it from inherent characteristics | Photograph the container and cargo together and preserve the damage pattern |
| Deterioration of refrigerated cargo | Refrigeration failure, power interruption, incorrect setting, delay or inherent vice | Temperature Log, set point, PTI and pre-shipment quality records | Confirm causation, physical damage and any special refrigerated-cargo terms | Secure temperature data and consider inspection before disposal |
| Shortage discovered on delivery | Theft or non-delivery versus incorrect shipment quantity | B/L, Packing List, CFS records, Devanning Report and delivery receipt | Identify the stage at which the quantity discrepancy arose | Record shortage remarks and preserve seal and opening evidence |
| Missing components from used machinery | Loss or theft during transit versus pre-existing absence | Pre-shipment photographs, inspection sheet, packing details and arrival photographs | Lack of pre-shipment evidence may make transit loss difficult to establish | Maintain detailed condition records before shipment of used goods |
| Cargo delayed by a port strike | Physical loss caused by strike activity versus loss caused merely by delay | ICC(A), Strikes Clauses, port information and damage records | Strikes cover does not by itself make delay loss recoverable | Separate actual physical damage from delay-related loss |
| Leakage of dangerous or chemical cargo | External impact, unsuitable receptacle, internal pressure or inherent characteristics | SDS, container specification, dangerous goods declaration, photographs and inspection report | Assess compatibility, causation and any packing exclusion | Prioritise safety and promptly contact appropriate specialists and insurers |
| Damage during unscheduled warehousing | Whether the cargo remained in the ordinary course of transit or cover had terminated | Policy, warehousing instructions, receipt and dispatch records and delivery plan | Consider the purpose of storage and the termination provisions of the Transit Clause | Notify the insurer before material changes to the intended transit where possible |
Application Scenario 1 — Internal Damage to Precision Machinery
Scenario: Precision machinery with an invoice value of JPY 20 million is insured under ICC(A). When the wooden case is opened at the final destination, internal support components are found broken. There is no major damage to the outside of the case and no confirmed dropping incident during transit.
The first conclusion should not be that the claim fails because there is no external damage. ICC(A) is not structured solely around matching the accident to one of a limited number of named perils. The issue is whether fortuitous damage can be shown to have occurred during the insured transit.
The analysis should then review the pre-shipment condition, packing specification, internal securing, cushioning, Shock Indicator data, stowage and the condition observed during unpacking. A fortuitous vibration or impact may be relevant, while packing that was unable to withstand the ordinary incidents of transit may raise the packing exclusion.
The correct conclusion is therefore neither “no external damage means no cover” nor “ICC(A) guarantees payment.” The insurer must evaluate the evidence concerning the pre-loss condition, fortuity, packing, causation and exclusions.
Application Scenario 2 — Temperature Excursion of Frozen Cargo
Scenario: Frozen food with an invoice value of JPY 8 million is insured under ICC(A). During transit, the temperature inside the Reefer Container rises for an extended period and quality deterioration is confirmed on arrival.
The fact that the temperature increased does not by itself determine coverage. Refrigeration machinery failure, interruption of electrical supply, incorrect set point, cargo temperature at loading, transit time and natural deterioration must be distinguished.
If a fortuitous machinery failure occurred during insured transit and caused physical deterioration of the cargo, the loss may proceed to consideration under ICC(A). If the goods were already deteriorating before shipment, if inherent vice was the operative cause, or if the loss resulted solely from delay, an exclusion may become relevant.
Refrigerated cargo may also be subject to special temperature-control provisions, time thresholds or other endorsements in addition to standard ICC(A). The Temperature Log therefore cannot be considered in isolation from the complete insurance contract.
Application Scenario 3 — Port Strike and Late Arrival
Scenario: Seasonal goods with an invoice value of JPY 12 million are held at a port for 14 days because of a strike. The goods are physically undamaged, but the cargo owner claims JPY 5 million for lost sales because the sales season was missed.
The first issue is that ordinary ICC(A) excludes principal strikes-related risks, so the existence of Institute Strikes Clauses or another relevant endorsement must be checked. However, the presence of Strikes cover does not by itself establish that every commercial loss connected with the strike is insured.
The JPY 5 million claim represents economic loss resulting from late arrival rather than physical loss of or damage to the cargo. Delay is therefore a separate exclusion issue, and physical cargo damage must be distinguished from loss of market or lost profit.
The correct analysis is not “Strikes cover means every strike-related loss is covered.” The insured peril, the type of loss actually suffered and the causal role of delay must each be considered separately.
Common Misunderstandings
| Misunderstanding | Actual Practice | Practical Caution |
|---|---|---|
| ICC(A) pays every type of loss | ICC(A) provides broad cover but remains subject to general exclusions, inherent vice, delay, war and strikes exclusions and other policy terms. | Review the complete wording rather than the label alone. |
| If the precise cause cannot be identified, ICC(A) must reject the claim | ICC(A) is not structured solely around matching the loss to a limited list of named perils. | Establish the loss, timing, fortuity and exclusions from the available evidence. |
| Internal damage is excluded whenever the outer packing is undamaged | The condition of the outer packing is relevant evidence but does not alone determine coverage. | Review internal securing, impact data and pre-shipment condition as well. |
| Any weakness in packing automatically excludes the whole claim | The adequacy of packing, the person who packed, timing and causation must be examined. | Avoid treating “insufficient packing” as a label applied after the event. |
| Warehouse-to-Warehouse means cargo is insured whenever it is in a warehouse | Cover may terminate when cargo enters storage outside the ordinary course of transit or is unloaded at the final warehouse. | Review the purpose of storage and continuity of transit. |
| Cargo is always insured for 60 days after discharge | The 60-day period is only one termination mechanism and another termination event may occur earlier. | Confirm final unloading and any election to use storage outside the ordinary course of transit. |
| War and strikes risks are automatically included because ICC(A) is All Risks | Principal war and strikes-related risks are excluded from ordinary ICC(A) and require separate clause review. | Check War, Strikes, Terrorism and other endorsements at policy level. |
| Piracy must always be excluded as a war risk | ICC(A) 1/1/09 gives piracy specific treatment within the war exclusion. | Review additional exclusions and route conditions before reaching a conclusion. |
| Adding Strikes cover means delay losses caused by a strike are insured | Physical damage caused by strike activity and economic loss caused by delay are separate issues. | Separate the type of loss and its cause. |
Comparison of Freight Forwarder Involvement
| Stage | What the Freight Forwarder Can Assist With | What the Freight Forwarder Should Not Determine | Main Party to Consult | Practical Action |
|---|---|---|---|---|
| Insurance arrangement | Organising cargo, route, trade term and requested coverage information | Guaranteeing that a future claim will be paid | Insurer or insurance intermediary | Provide accurate cargo characteristics and transit information |
| General explanation | Explaining that ICC(A) is generally broader than ICC(B) and ICC(C) | Making the final interpretation of an exclusion in a specific claim | Insurer or insurance intermediary | Explain broad cover and exclusions together |
| Discovery of damage | Helping collect photographs, delivery receipts, transport documents and incident records | Making an immediate final coverage determination | Insurer, insurance intermediary or surveyor | Preserve evidence before disposal or repair |
| Transit analysis | Organising Booking, B/L, CFS, warehousing and delivery records chronologically | Finally determining whether the loss occurred within insured duration | Insurer or insurance intermediary | Compare From, To and Via information with the actual transit history |
| Claim against carriers | Assisting with incident notices, documents and identification of relevant transport parties | Automatically determining legal liability or the amount recoverable from a carrier | Contracting Carrier, Actual Carrier or maritime lawyer | Protect notice periods, contractual time bars and limitation periods |
| Insurance claim | Helping the cargo owner organise supporting documents and communicate with the insurance side | Promising coverage or claim amount on behalf of the insurer | Insurer or insurance intermediary | Separate established facts from legal or coverage assertions |
Decision Checklist for Cargo Claims
| Stage of Review | Party to Confirm With | What to Confirm | Action If There Is a Problem |
|---|---|---|---|
| Discovery of damage | Cargo owner, warehouse and delivery company | Outer condition, cargo condition, quantity, delivery remarks and discovery time | Preserve photographs and video and place appropriate damage remarks on the delivery receipt |
| Insurance review | Insurer, insurance intermediary and internal insurance personnel | ICC(A) version, duration, cargo, route, endorsements and exclusions | Do not state a coverage conclusion until the policy wording has been checked |
| Transit history review | Freight forwarder, shipping line, warehouse and delivery company | Dates of pickup, terminal receipt, loading, discharge, release and delivery | Identify the likely loss period chronologically |
| Packing review | Cargo owner, packing contractor and warehouse | Packing specification, securing, waterproofing, moisture protection, packer and timing | Obtain additional pre-shipment photographs and packing specifications |
| Cargo characteristics review | Cargo owner, manufacturer and inspection company | Quality characteristics, temperature, humidity, decay, rust and self-heating exposure | Use specialist or survey evidence to distinguish an external event from inherent characteristics |
| Quantum review | Cargo owner, repairer, insurer and surveyor | Repair cost, replacement cost, salvage value, disposal cost and physical loss amount | Separate physical loss from delay, lost profit and other consequential loss |
| Preservation of carrier rights | Contracting Carrier, Actual Carrier, warehouse and other relevant parties | Notice requirements, claim periods, evidence and responsibility for the relevant stage of transit | Do not allow pursuit of the insurance claim to cause loss of rights against third parties |
| Before disposal, repair or sale | Insurer, insurance intermediary and surveyor | Need for physical inspection, survey, salvage valuation or prior approval | Confirm requirements before evidence is altered or destroyed |
Loss Mitigation and Preservation of Rights Against Carriers
After a casualty, the Assured should not focus solely on preparing an insurance claim. Reasonable measures should be taken to prevent further deterioration and rights against the shipping line, freight forwarder, inland carrier, warehouse or other third party should be properly preserved.
Practical measures may include preventing further damage, issuing timely notices to carriers, recording appropriate damage remarks on delivery documents and preserving damaged goods until any necessary survey has been completed.
After an insurer indemnifies the cargo owner, the insurer may pursue recovery from a responsible carrier or other party by subrogation. Failure to preserve those third-party rights during the initial response can therefore affect the overall cargo claim process.
When to Involve an Insurer, Insurance Intermediary or Maritime Lawyer
A general explanation of ICC(A) should be distinguished from a final coverage determination in an individual loss. The freight forwarder should consider escalation to an insurer, insurance intermediary, surveyor or, where appropriate, a maritime lawyer in circumstances such as the following:
- a high-value claim where application of an exclusion is disputed;
- a dispute over whether packing or an external transit event was the effective cause;
- a dispute concerning termination of insurance or a change of destination;
- general average, a major vessel casualty or a large fire involving multiple contracts;
- an approaching contractual or statutory time bar against a shipping line or NVOCC;
- a dispute requiring interpretation of the clauses under English law and practice; or
- a case involving both a disputed insurance exclusion and a disputed carrier liability claim.
Practical Points
The principal error to avoid is reaching a conclusion from the accident label alone: “All Risks means it is covered,” “breakage means it is covered,” or “packing means it is excluded.”
A disciplined analysis asks, in sequence: which policy and clauses apply; who had the insurable interest at the time of loss; when and where the loss occurred; what physical loss or damage actually occurred; what evidence explains the cause; whether an exclusion applies; and whether rights against responsible third parties have been preserved.
The breadth of ICC(A) makes evidence management particularly important. Accurate records of cargo condition, packing, transit history and the circumstances of the loss are often more valuable in a claim than the simple statement that the cargo was insured on “All Risks” terms.
Summary
ICC(A) is a principal marine cargo insurance condition providing substantially broader protection than ICC(B) and ICC(C). Its basic structure is to consider loss of or damage to the insured cargo broadly during the insured transit and then apply the contractual exclusions.
Important exclusion issues include wilful misconduct, ordinary loss and wear, certain insufficient packing, inherent vice, delay, certain vessel or container unfitness, war risks and strikes-related risks. Warehouse-to-Warehouse cover is also subject to contractual attachment and termination rules and is not unlimited warehouse insurance.
When a loss occurs, the policy wording should be considered together with the pre- and post-loss condition of the cargo, packing, transit route, timing, causation, additional clauses and rights against third parties.
Marine cargo insurance outcomes can differ materially because of policy conditions and the quality of evidence available after a casualty. Selection of coverage, underwriting of special cargo and final interpretation of individual claims should therefore be confirmed with an experienced insurer or insurance intermediary.
