ICC(C) — Coverage and Key Checks under Marine Cargo Insurance
Interlink編集部ICC(C) means the Institute Cargo Clauses (C), a marine cargo insurance condition that principally covers loss of or damage to cargo resulting from a limited group of risks specified in the clauses.
Among ICC(A), ICC(B) and ICC(C), ICC(C) provides the narrowest standard scope of cover. Its principal listed risks include fire or explosion, stranding, grounding, sinking or capsizing of a vessel or craft, overturning or derailment of a land conveyance, collision or contact with an external object, discharge at a port of distress, general average sacrifice and jettison.
Accordingly, the mere fact that cargo was broken, wet, stolen, not delivered or found short during transit does not determine coverage under ICC(C). The cause must first be identified, matched to a listed peril and connected with the particular cargo loss claimed.
Even where a listed peril applies, general exclusions, insufficient packing, inherent vice, delay, vessel or container unfitness, war risks, strikes risks, duration and other policy conditions must still be reviewed.
Unless otherwise stated, this article primarily addresses ICC(C) 1/1/09. Actual insurance contracts may incorporate special clauses, additional risks, additional exclusions, commodity-specific terms or other amendments. The actual policy and incorporated wording therefore remain controlling in an individual case.
Scope of This Article
| Item | What This Article Covers | What Other Articles Cover |
|---|---|---|
| Basic structure of ICC(C) | The limited listed-perils structure and sequence of coverage analysis | Marine Cargo Insurance examines the overall structure of cargo insurance |
| Differences from ICC(A) and ICC(B) | Differences in scope, listed risks and causation analysis | ICC(A) and ICC(B) examine their respective coverage structures in detail |
| Fire, vessel casualties and land-conveyance casualties | Major listed events and their causal relationship with cargo damage | Carrier liability arising from individual casualties is addressed in related casualty articles |
| General average and jettison | Why insurance action may be required even where the cargo itself is undamaged | General Average examines guarantees, contributions and adjustment procedures in detail |
| Wet damage and earthquake | Risks included in ICC(B) but not listed under standard ICC(C) | ICC(B) and Wet Damage examine those risks in detail |
| Insufficient packing and inherent vice | Why exclusions may remain relevant even where a listed peril has occurred | Insufficient Packing and Inherent Vice examine those exclusions in detail |
| Duration | The Transit Clause and basic Warehouse-to-Warehouse principles | Insurance Period and Transit Route examine attachment and termination in detail |
| Claims handling | Listed perils, causation, mitigation, evidence and preservation of third-party rights | Carrier liability and subrogation are addressed in related claims and liability articles |
Purpose and Basic Structure of ICC(C)
ICC(C) is not designed to provide broad protection against all fortuitous transit losses. It is a listed-perils form under which loss of or damage to cargo is considered when it results from one of a limited number of risks specified in the clauses.
The analysis therefore separates the existence of cargo damage from the cause of that damage. It also separates the occurrence of a listed peril from the question of whether that peril caused the particular loss claimed.
For example, the fact that a vessel stranded does not automatically make every item of damage aboard the vessel recoverable. The investigation should determine whether impact, vessel movement, flooding, shifting of cargo or another consequence of the stranding actually caused the relevant cargo damage.
ICC(C) is also more than a restricted form dealing only with physically damaged cargo. It contains provisions concerning general average sacrifice, specified general average and salvage charges and, in relevant circumstances, liability under a Both to Blame Collision Clause. This is particularly important where a general average event occurs without physical damage to the insured cargo.
Principal Risks Listed under ICC(C)
| Category | Listed Risk | Typical Situation | Main Issue to Confirm |
|---|---|---|---|
| Fire and explosion | Fire or explosion | Vessel fire, warehouse fire, truck fire or explosion | Relationship between the event and cargo damage |
| Vessel casualty | Vessel or craft stranded, grounded, sunk or capsized | Vessel stranding, craft capsizing or sinking | Timing, stowage position and actual effect on cargo |
| Land-conveyance casualty | Overturning or derailment of land conveyance | Truck overturning or railway derailment | Whether actual overturning or derailment occurred |
| Collision or contact | Collision or contact of vessel, craft or conveyance with an external object other than water | Contact with another vessel, quay, bridge structure or other object | Object contacted, circumstances and effect on cargo |
| Distress | Discharge of cargo at a port of distress | Unscheduled discharge following a vessel casualty | Reason for discharge and resulting cargo loss |
| General average | General average sacrifice | Cargo sacrificed for the common safety | General average act, sacrificed property and declaration |
| Jettison | Jettison | Cargo deliberately thrown overboard for the common safety | Reason for disposal, vessel report and relationship with general average |
Clause 1 of ICC(C) uses different formulations for its groups of risks. Fire, stranding, overturning and similar casualties involve loss or damage reasonably attributable to the listed event, while general average sacrifice and jettison are expressed as causes of the insured loss.
The casualty label alone is therefore insufficient. The relationship between the listed peril and the particular cargo damage should be supported by casualty reports, photographs, stowage information, vehicle records, survey evidence and other objective material.
Differences Between ICC(A), ICC(B) and ICC(C)
| Condition | Basic Coverage Structure | Typical Losses More Readily Considered | Losses More Likely to Fall Outside the Standard Cover | Main Analytical Focus |
|---|---|---|---|---|
| ICC(A) | Broad risks cover subject to exclusions | Breakage, wet damage, theft, non-delivery, shortage, contamination and handling damage | Insufficient packing, inherent vice, ordinary wear, delay, war and strikes risks | Existence of loss, fortuity and exclusions |
| ICC(B) | A broader group of specified listed perils | Fire, stranding, overturning, earthquake, washing overboard and specified water entry | Ordinary breakage, theft, rain damage, unexplained shortage and partial handling damage | Listed peril and causation |
| ICC(C) | A narrower group of specified listed perils | Fire, stranding, sinking, overturning, derailment, collision, general average sacrifice and jettison | Ordinary breakage, theft, wet damage, earthquake, washing overboard and unexplained shortage | Whether the limited listed peril applies and caused the loss |
ICC(C) should not be understood merely as a condition that is slightly narrower than ICC(B). Earthquake, volcanic eruption, lightning, washing overboard, entry of sea, lake or river water and the specified package-total-loss provision during loading or unloading are listed under standard ICC(B) but not under standard ICC(C).
Requirements for Analysing a Loss under ICC(C)
| Item | What to Confirm | Why It Matters | Main Documents |
|---|---|---|---|
| Applicable wording | ICC(C) version, additional risks, special clauses and exclusions | The label ICC(C) alone does not establish the complete contractual cover | Policy, Certificate, Declaration and incorporated clauses |
| Insured cargo | Whether the damaged goods fall within the subject matter insured | The listed-peril analysis is secondary if the goods are outside the insured subject matter | Invoice, Packing List and insurance declaration |
| Insurable interest | Whether the claimant had an insurable interest at the time of loss | This is a fundamental claims issue | Sales contract, Incoterms, Invoice and policy documents |
| Duration | Whether the casualty occurred during the insured transit | A listed peril occurring outside insured duration raises a separate issue | Pickup, terminal, B/L, release and delivery records |
| Cause | What actually caused the cargo loss | ICC(C) cannot be analysed from the description of damage alone | Casualty report, photographs, vehicle records, voyage information and Survey Report |
| Listed peril | Whether the cause falls within Clause 1 of ICC(C) | This is the central coverage question | Policy wording and casualty reports |
| Causation | Whether the listed peril caused the particular cargo damage | The occurrence of a major casualty alone is insufficient | Stowage position, photographs, chronology and inspection evidence |
| Exclusions | Whether packing, inherent vice, delay or another exclusion applies | A listed peril does not override the exclusions | Packing specifications, commodity information and transit records |
Fire and Explosion — Separate the Casualty from the Cargo Damage
Fire and explosion are principal listed perils under ICC(C). Where a fire or explosion occurs aboard a vessel, in a warehouse, on a truck or elsewhere during insured transit and causes physical loss or damage to cargo, the claim may fall for consideration.
The existence of a fire, however, does not establish damage to every cargo unit involved in the transit. The actual effects of burning, heat, soot, smoke or extinguishing water should be examined.
For food, pharmaceuticals, precision components and similar cargo, visible burning may be absent while heat or smoke raises questions concerning physical quality or safety. Inspection reports, manufacturer assessments, saleability evidence and survey findings may be needed to distinguish physical cargo damage from a purely commercial concern regarding market acceptance.
Stranding, Sinking, Capsizing and Collision — A Major Casualty Is Not Enough by Itself
Stranding, grounding, sinking or capsizing of a vessel or craft, together with collision or contact of a vessel, craft or conveyance with an external object other than water, are central ICC(C) listed perils.
Nevertheless, the occurrence of a vessel casualty and the cause of each cargo loss are separate issues. If a vessel strands without materially affecting a particular cargo unit and that cargo is subsequently damaged by an unrelated handling accident, the later damage does not automatically become stranding damage.
The casualty time, stowage position, condition of the container, degree of impact, evidence of shifting and time of discovery should be arranged chronologically to determine how the listed peril affected the particular cargo.
Overturning or Derailment of Land Conveyance
ICC(C) is not limited to the sea leg. During the insured transit, overturning or derailment of a land conveyance is expressly listed as an insured peril.
For example, where a truck overturns while carrying cargo from the port of discharge to the final destination and the cargo is damaged by the impact, the listed peril may apply.
By contrast, cargo shifting following hard braking, abrasion caused by ordinary road vibration or minor handling shocks during a journey are different from overturning of the conveyance itself. The fact that damage occurred during inland transport does not make it an ICC(C) loss.
General Average — Insurance May Be Relevant Even When the Cargo Is Undamaged
General average is one of the most important practical issues under ICC(C) because it is not limited to physical damage to the particular cargo.
Where an extraordinary and reasonable sacrifice or expenditure is made for the common safety of the maritime adventure, the resulting general average burden may, subject to the applicable requirements, be apportioned among the vessel, cargo and other interests.
A cargo owner may therefore face a general average contribution even where the goods ultimately arrive without physical damage. Release of the cargo may also require security documentation such as a General Average Guarantee or General Average Bond.
ICC(C) contains separate provisions for specified general average and salvage charges. It is therefore incorrect to conclude that insurance is irrelevant merely because the insured cargo itself is undamaged.
Upon receiving a general average declaration or a request from an Average Adjuster, the cargo owner should promptly contact the insurer or insurance intermediary and confirm the security documents, guarantee arrangements and subsequent contribution process.
Relationship with Jettison
Jettison is expressly listed under ICC(C). A typical example is the deliberate throwing overboard of cargo for the common safety of the vessel and the property involved in the maritime adventure.
Loss of jettisoned cargo may also form part of a general average sacrifice. However, cargo simply disappearing overboard does not automatically establish jettison.
Washing overboard is listed under standard ICC(B) but not under standard ICC(C). Cargo deliberately thrown overboard and cargo swept overboard by waves must therefore be distinguished.
Principal Risks Listed under ICC(B) but Not Standard ICC(C)
| Risk | ICC(B) | ICC(C) | Practical Significance |
|---|---|---|---|
| Earthquake, volcanic eruption and lightning | Listed | Not listed under the standard form | The difference can be material where natural-hazard exposure is significant |
| Washing overboard | Listed | Not listed under the standard form | Particularly relevant to certain on-deck cargo |
| Entry of sea, lake or river water | Listed | Not listed under the standard form | A major distinction for container wet-damage exposure |
| Specified package total loss during loading or unloading | Listed | Not listed under the standard form | The scope for loading and unloading casualties differs materially |
| Fire or explosion | Listed | Listed | A fundamental major-casualty risk under both forms |
| General average sacrifice and jettison | Listed | Listed | Important marine risks under both forms |
Principal Exclusions under ICC(C)
| Exclusion Issue | Main Point | Significance under ICC(C) | Practical Evidence |
|---|---|---|---|
| Wilful misconduct | Loss attributable to wilful misconduct of the Assured | It is not treated as an ordinary fortuitous insured casualty | Incident history, instructions and conduct of relevant parties |
| Ordinary loss | Ordinary leakage, ordinary loss in weight or volume and ordinary wear and tear | Normal deterioration remains separate from listed perils | Normal loss rates, shipment and arrival quantities and commodity characteristics |
| Insufficient packing | Packing or preparation insufficient for the ordinary incidents of transit | It may remain relevant even where a major casualty has occurred | Packer, timing, packing specifications and container stowage |
| Inherent vice | Loss arising from the inherent vice or nature of the cargo | Damage generated by the commodity itself must be distinguished from a listed external event | Commodity specifications, pre-shipment quality and environmental data |
| Delay | Loss or damage caused by delay | The exclusion may apply even where delay follows an insured risk | Separate physical loss from lost profit and loss of market |
| Certain insolvency or financial default | Financial default of vessel interests and relevant knowledge of the Assured | The specific contractual knowledge requirements should be reviewed | Information available when the shipment was arranged |
| Deliberate damage by third parties | Deliberate damage or destruction by the wrongful act of any person | This is an important exclusion under standard ICC(C) | Review any additional malicious-damage protection |
| Vessel or container unfitness | Certain unseaworthiness or unfitness for safe carriage | Knowledge and loading circumstances may be material | Container condition, loading records and prior knowledge |
| War risks | War, civil war, capture, detention and derelict weapons of war | Separate war-risk cover must be reviewed | War Clauses, route and policy |
| Strikes and related risks | Strikes, riots, civil commotion and terrorism | Separate Strikes cover and other endorsements should be reviewed | Strikes Clauses and policy endorsements |
Duration — A Major Casualty Outside the Insured Transit Is a Separate Issue
Although ICC(C) limits the insured perils, the duration of insurance remains a separate and essential question. Even fire, stranding or truck overturning cannot be analysed solely by reference to the listed peril if the casualty occurred outside the insured period.
Under ICC(C) 1/1/09, cover generally attaches when the insured cargo is first moved at the place named in the insurance contract for the purpose of immediate loading into or onto the carrying vehicle or other conveyance to commence transit, and continues during the ordinary course of transit.
Cover may terminate on completion of unloading at the final warehouse, on completion of unloading at another warehouse selected for storage outside the ordinary course of transit or for allocation or distribution, when a vehicle or container is elected to be used for storage outside the ordinary course of transit, or upon expiry of the specified period following discharge from the overseas vessel, subject to whichever contractual termination event occurs first.
Accordingly, “Warehouse-to-Warehouse” does not mean that every accident occurring while cargo is physically inside a warehouse remains insured. The purpose of storage and continuity of the ordinary transit must be examined.
Situations in Which ICC(C) May Be Considered
| Cargo or Transit Situation | Main Risk Concern | Reason ICC(C) May Be Considered | Condition-Selection Caution |
|---|---|---|---|
| Bulk cargo | Fire, stranding, sinking and collision | Major marine casualties may be more significant than routine minor damage | Consider whether wet damage, theft or shortage protection is also required |
| Raw materials | Major transport casualties | Individual physical damage exposure may sometimes be treated as relatively limited | Certain commodities may still require broader protection |
| Relatively damage-resistant cargo | Fire, vessel casualties and vehicle overturning | The insurance objective may focus on a restricted group of major events | Actual theft, wet-damage and handling exposure should still be reviewed |
| Through transport including an inland leg | Truck overturning and railway derailment | Land-conveyance casualties may be relevant during insured transit | Ordinary shock or cargo shifting is a separate issue |
| Ocean cargo exposed to general average | General average contribution | A financial burden may arise even where the cargo itself is undamaged | Understand security and guarantee procedures in advance |
| Where premium and scope are intentionally restricted | Major casualties | ICC(C) provides a narrower alternative to ICC(A) or ICC(B) | Select it only where the principal cargo risks match the listed perils |
ICC(C) should not be selected merely because it is perceived as a lower-cost form of insurance. It should be selected only after the principal risks of the cargo and transit have been compared with the limited listed perils.
Finished goods, high-value cargo, machinery, precision equipment and general merchandise may be exposed to ordinary breakage, theft, non-delivery, wet damage and shortage that standard ICC(C) does not broadly insure.
ICC(C) Coverage Analysis Flow
- Identify the applicable insurance contract.
Confirm the ICC(C) version, policy, additional risks, exclusions and any War or Strikes cover. - Identify the insured cargo and insurable interest.
Confirm that the goods are insured and that the claimant had an insurable interest at the time of loss. - Establish the time and place of the casualty.
Arrange pickup, terminal receipt, vessel loading, discharge, warehousing, release and final delivery chronologically and determine whether the casualty occurred during insured transit. - Establish the actual cargo loss or general average demand.
For physical damage, compare the pre-loss and post-loss condition. For general average, review the declaration and security request. - Identify the cause of the event.
Determine whether fire, explosion, stranding, sinking, overturning, derailment, collision, jettison or another event occurred. - Match the event to an ICC(C) listed peril.
Determine whether the cause falls within the limited risks specified in Clause 1. - Establish causation between the peril and the loss.
A major casualty is not enough unless it is connected with the particular cargo damage claimed. - Review general average and salvage separately.
Even without cargo damage, a general average contribution or salvage charge may require separate analysis. - Review exclusions and additional terms.
Consider packing, inherent vice, delay, unfitness, war, strikes and other applicable provisions. - Mitigate the loss and preserve third-party rights.
Prevent further deterioration and preserve claims against carriers, warehouses and other potentially responsible parties. - Submit the evidence to the insurer or insurance intermediary.
Organise the cause, listed peril, causation, exclusions, quantum and any general average documents for the coverage determination.
Steps five to seven are particularly important under ICC(C). The analysis should not move directly from “cargo is damaged” to “the insurance applies.” It should ask what happened, whether the event is actually listed and whether that event caused the particular loss.
Cases That Frequently Cause Practical Problems
| Case | Main Cause or Issue | Evidence to Review | Decision Point | Initial Action |
|---|---|---|---|---|
| Only part of the cargo is damaged after vessel stranding | Causation between the stranding and each item of damage | Vessel report, stowage position, photographs and Survey Report | Establish the actual effect of the casualty on the cargo | Record the casualty chronology and time of damage discovery |
| Cargo damaged when a truck overturns | Actual overturning versus cargo shifting or hard braking | Accident certificate, vehicle photographs, carrier report and cargo photographs | Confirm that the land conveyance actually overturned | Preserve evidence of the accident scene, vehicle and cargo |
| Undamaged cargo subject to a general average declaration | General average contribution rather than physical cargo damage | General average declaration, security request, policy and shipping line notice | Insurance action may be required despite the absence of physical damage | Promptly notify the insurer or insurance intermediary and confirm security procedures |
| Smoke or soot contamination after vessel fire | Relationship between the fire and actual physical loss | Fire report, photographs, inspection report and product assessment | Separate the existence of fire from actual cargo impairment | Inspect or survey before disposal or sale |
| Sea-water damage inside a container | Entry of water is not a Clause 1 peril under standard ICC(C) | Policy wording, container photographs, salt testing and endorsements | Review the difference from ICC(B) and any additional cover | Preserve causation evidence and review the actual policy |
| Partial handling damage | Whether an ordinary handling accident falls within any ICC(C) listed peril | Handling records, photographs, incident report and repair estimate | A dropped package alone does not establish standard ICC(C) cover | Preserve evidence and review additional terms |
| Unexplained shortage | Theft, non-delivery or shipment discrepancy | B/L, Packing List, seal records, Devanning Report and delivery records | Shortage itself is not an ICC(C) listed peril | Trace the stage at which the discrepancy arose |
| Dangerous goods fire damaging surrounding cargo | Listed fire peril together with packing and declaration issues | SDS, dangerous goods declaration, fire investigation and packing records | Analyse the listed peril and exclusions separately | After securing safety, promptly preserve causation evidence |
Application Scenario 1 — Partial Cargo Damage Following Vessel Stranding
Scenario: Industrial machinery with an invoice value of JPY 25 million is insured under ICC(C). The vessel strands during the voyage. On arrival at destination, internal components are found damaged in one of several cases.
The first requirement is satisfied at the level of the casualty because stranding of the vessel is an ICC(C) listed peril. That fact, however, does not automatically establish that the internal damage to the particular case is insured.
The investigation should examine impact and vessel movement during the casualty, stowage position, securing within the container, pre-shipment condition and the time at which the damage was discovered.
If the damage resulted from inadequate securing unrelated to the stranding or from a pre-existing defect, the existence of a stranding does not by itself make the damage recoverable. The analysis therefore has two stages: identifying the listed stranding peril and establishing that the stranding caused the particular loss.
Application Scenario 2 — Cargo Damage Following Truck Overturning
Scenario: Raw materials with an invoice value of JPY 8 million are insured under ICC(C). While travelling from the port of discharge to the final destination, the truck overturns on an expressway and part of the cargo is damaged.
Overturning of a land conveyance is expressly listed under ICC(C). If the accident occurred during insured transit and the actual overturning is established by an accident report or similar evidence, the listed-peril requirement can be considered.
The next issue is whether the impact or cargo movement during the overturning caused the particular damage. Vehicle records, cargo photographs and delivery evidence should be reviewed.
If the truck did not overturn and the cargo merely shifted after hard braking, the same description of “damage during truck transport” may lead to a different result because the specified overturning peril may not apply. The actual event affecting the vehicle must therefore be identified precisely.
Application Scenario 3 — General Average Declared Although the Cargo Is Undamaged
Scenario: Raw materials with an invoice value of JPY 30 million are insured under ICC(C). A major fire occurs aboard the vessel, which enters a port of refuge after firefighting and towage operations. General average is declared. The insured cargo itself suffers no visible damage and ultimately remains usable.
The conclusion should not be that insurance is irrelevant because the cargo is undamaged. A general average event may impose a contribution on the cargo interest for sacrifices or expenditure incurred for the common safety.
The cargo owner may be required to provide security before release of the cargo. Upon receiving the general average declaration or a request from the Average Adjuster, the insurer or insurance intermediary should therefore be contacted promptly to confirm the required guarantee arrangements.
A final contribution may subsequently be determined through the general average adjustment. Under ICC(C), physical cargo damage and general average liability should therefore be understood as separate insurance issues.
Common Misunderstandings
| Misunderstanding | Actual Practice | Practical Caution |
|---|---|---|
| ICC(C) is cargo insurance, so ordinary breakage is generally covered | ICC(C) principally covers a limited group of listed perils. | Identify the cause of the breakage and determine whether it is listed. |
| Once a vessel strands or collides, all cargo damage is automatically covered | The causal relationship between the listed peril and each cargo loss must still be established. | Review stowage position, casualty circumstances and damage pattern. |
| Any damage during truck transport qualifies as a land-conveyance casualty | Overturning or derailment of the land conveyance is the relevant listed peril. | Distinguish cargo shifting, hard braking and ordinary vibration. |
| General average is irrelevant if the cargo is undamaged | An undamaged cargo interest may still face a general average contribution and security requirements. | Contact the insurance side promptly after a general average declaration. |
| Sea-water damage is covered because ICC(C) is marine cargo insurance | Specified entry of sea, lake or river water is listed under standard ICC(B), not standard ICC(C). | Review the difference from ICC(B) and any additional cover. |
| Earthquake damage is automatically covered under ICC(C) | Earthquake is listed under standard ICC(B), but not under standard ICC(C). | Natural-hazard exposure should be considered when selecting the condition. |
| ICC(C) is always sufficient for damage-resistant cargo because the premium is lower | Theft, wet damage, handling and route exposures may remain significant regardless of physical robustness. | Select the condition by actual risk rather than price alone. |
| Once a listed peril applies, exclusions no longer matter | Packing, inherent vice, delay and other exclusions remain relevant after the listed-peril analysis. | Review insured perils and exclusions as separate stages. |
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 |
|---|---|---|---|---|
| Selection of condition | Organising cargo details, route and the risks of concern to the shipper | Guaranteeing that ICC(C) will cover every required casualty | Insurer or insurance intermediary | Compare the scope of ICC(A), ICC(B) and ICC(C) |
| Major casualty | Obtaining casualty records from the shipping line or inland carrier | Assuming that every cargo loss is insured merely because a major casualty occurred | Insurer, insurance intermediary or surveyor | Establish the relationship between the listed peril and each cargo loss |
| General average | Organising the declaration, security request and cargo information | Concluding that no insurance action is required because the cargo is undamaged | Insurer, insurance intermediary and Average Adjuster | Confirm the documents required for security promptly |
| Wet damage | Collecting causation evidence and container information | Stating that sea-water damage is covered under standard ICC(C) | Insurer or insurance intermediary | Review the distinction from ICC(B) and any additional terms |
| Claim against carriers | Organising casualty notices, transport documents and the relevant stage of transit | Automatically determining liability of the Contracting Carrier or Actual Carrier | Carrier, insurer or maritime lawyer where appropriate | Preserve claim and litigation time limits |
| Insurance claim | Helping organise factual evidence, casualty chronology and damage documents | Promising the insurance decision or claim amount on behalf of the insurer | Insurer or insurance intermediary | Separate insurance coverage from carrier liability |
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 | Cargo condition, outer packing, quantity, discovery time and delivery remarks | Preserve photographs before and after unpacking and place appropriate remarks on delivery documents |
| Listed-peril review | Shipping line, inland carrier, warehouse and terminal interests | Fire, stranding, sinking, overturning, derailment, collision or jettison | Obtain casualty certificates, voyage information, site records and vehicle records |
| Causation review | Insurer, surveyor and transport parties | Whether the listed peril actually caused the particular cargo damage | Obtain additional stowage, chronology and damage evidence |
| Wet-damage risk review | Cargo owner, insurer and insurance intermediary | Whether additional water-entry cover exists and how ICC(C) differs from broader conditions | Do not assume standard ICC(C) cover; review the policy and endorsements |
| General average review | Shipping line, insurer, insurance intermediary and Average Adjuster | General average declaration, security request, contribution and cargo-release requirements | Notify the insurance side promptly even if the cargo is physically undamaged |
| Duration review | Freight forwarder, warehouse and insurer | Pickup, terminal receipt, discharge, storage, release and final delivery chronology | Determine whether storage outside the ordinary course of transit or another termination event occurred |
| Preservation of third-party rights | Contracting Carrier, Actual Carrier, warehouse and other relevant parties | Notice requirements, claim periods, responsibility stage and necessary evidence | Preserve third-party rights within the applicable time limits while the insurance claim proceeds |
| Before disposal, repair or sale | Insurer, insurance intermediary and surveyor | Need for survey, salvage valuation or physical inspection | Confirm requirements before evidence is destroyed or altered |
Loss Mitigation and Preservation of Rights Against Third Parties
When a casualty potentially falling within ICC(C) occurs, the Assured should do more than submit an insurance claim. Reasonable measures should be taken to avert or minimise further loss.
This may include protecting cargo affected by firefighting water from further corrosion or moving salvageable cargo to a safe location after a vehicle overturning.
At the same time, immediate disposal, repair or sale can destroy evidence concerning causation, extent of damage or salvage value. Any necessary survey and communication with the insurer or insurance intermediary should therefore be considered first.
Rights against the shipping line, Contracting Carrier, Actual Carrier, freight forwarder, warehouse, inland carrier and other potentially responsible third parties should also be preserved through appropriate delivery remarks, casualty notices, claim notices, photographs and transport documents.
After indemnifying the cargo owner, a marine cargo insurer may pursue a responsible party by subrogation. The insurance claim and preservation of rights against carriers or other third parties should therefore proceed in parallel.
When to Involve an Insurer, Insurance Intermediary or Maritime Lawyer
Although ICC(C) contains a limited list of insured perils, major claims can involve causation, general average, exclusions and carrier liability at the same time.
- a high-value loss where application of the listed peril or causation is disputed;
- a major stranding or fire where the relationship with the particular cargo damage is unclear;
- a general average declaration requiring security, contribution or salvage-related action;
- a case involving both insufficient packing and a listed peril as possible causes;
- a dispute over whether warehousing remained within the ordinary course of transit;
- a claim involving both marine cargo insurance and potential liability of a Contracting Carrier or Actual Carrier;
- an approaching claim or litigation time limit against a carrier; or
- a dispute requiring interpretation of ICC(C) under English law and practice.
A freight forwarder may assist with evidence collection and communication, but is not necessarily the party responsible for finally determining insurance coverage or legal carrier liability. Where multiple issues are disputed, the matter should be escalated to the insurer, insurance intermediary, surveyor and, where appropriate, a maritime lawyer.
Practical Points
The essential discipline under ICC(C) is to recognise that the existence of cargo damage and the existence of an insured loss are separated by the listed-peril and causation analysis.
A practical sequence is to confirm: the applicable policy and clauses; insured cargo and insurable interest; insured duration; actual cargo loss; cause of the casualty; the relevant ICC(C) listed peril; causation between that peril and the loss; exclusions; general average or salvage issues; and preservation of rights against third parties.
At the insurance-arrangement stage, ICC(C) should not be described simply as a lower-premium form of cargo insurance. Standard ICC(C) does not broadly insure ordinary breakage, theft, non-delivery, shortage, wet damage, earthquake or washing overboard.
This distinction is particularly important for finished goods, high-value cargo, machinery, precision equipment and general merchandise, where the most frequent practical losses may fall outside the limited ICC(C) list.
Summary
ICC(C), the Institute Cargo Clauses (C), is a principal marine cargo insurance condition covering loss of or damage to cargo resulting from a limited group of listed perils.
The principal listed risks include fire or explosion, stranding, grounding, sinking or capsizing of a vessel or craft, overturning or derailment of land conveyance, collision or contact with an external object, discharge at a port of distress, general average sacrifice and jettison.
Earthquake, volcanic eruption, lightning, washing overboard, entry of sea, lake or river water and the specified package-total-loss provision during loading or unloading are listed under standard ICC(B) but not under standard ICC(C). Standard ICC(C) also does not broadly cover ordinary breakage, theft, non-delivery or unexplained shortage.
General average remains particularly important under ICC(C). Insurance action and security may be required even where the cargo itself is undamaged, so absence of physical cargo damage does not mean that the insurance is irrelevant.
Following a casualty, the analysis should proceed through duration, cause, listed peril, causation, exclusions, general average, mitigation and preservation of third-party rights. Selection of the insurance condition and interpretation of an individual claim should be confirmed with an experienced insurer or insurance intermediary.
