Marine Cargo Insurance
for Importers & Exporters:
ICC A vs B vs C Explained
When shipping goods internationally, choosing the right marine cargo insurance isn't optional — it's the difference between a manageable setback and a devastating loss. Yet most importers and exporters get quoted three mysterious letters — ICC A, B, and C — with little explanation of what they actually mean for their specific shipment.
Choose the wrong clause, and you could end up paying for coverage you don't need, or worse, discover too late that your cargo was never protected against the risk that actually hit it. This guide breaks down exactly what each clause covers, so you can make an informed choice instead of a guess.
What Is Marine Cargo Insurance?
"Marine" insurance is a bit of a misnomer — it doesn't only cover cargo traveling by sea. Marine cargo insurance protects goods in transit (and incidental storage) by sea, air, road, rail, post, or courier — or any combination of these, from the point of origin to the final destination.
It covers loss or damage to cargo, and in some cases the vessel or transport itself, during the entire journey — not just the ocean leg.
What Are Institute Cargo Clauses (ICC)?
Institute Cargo Clauses are standardised policy wordings created by the Institute of London Underwriters (ILU), used as the global benchmark for cargo insurance. Think of them as ready-made policy templates that spell out exactly what is and isn't covered — removing ambiguity for shippers, freight forwarders, and insurers alike.
The three most common versions are ICC A, ICC B, and ICC C, with ICC A offering the widest protection and ICC C the most restricted.
ICC A vs ICC B vs ICC C: The Core Difference
- ICC A — "All Risks": Covers all risks of physical loss or damage to cargo, except for specific named exclusions.
- ICC B & ICC C — "Named Perils": Only covers loss or damage caused by the specific perils explicitly listed in the clause.
| Risk / Coverage | ICC A (All Risks) | ICC B (Named Perils) | ICC C (Named Perils) |
|---|---|---|---|
| Fire & Explosion | Covered | Covered | Covered |
| Jettison & Washing Overboard | Covered | Covered | Covered |
| Earthquake, Volcano, Lightning | Covered | Covered | Not Covered |
| Entry of Sea/Lake/River Water | Covered | Covered | Not Covered |
| Total Loss of Package Overboard | Covered | Covered | Covered |
| General Average & Salvage | Covered | Covered | Covered |
| Negligence of Crew | Covered | Covered | Not Covered |
| Piracy | Covered | Covered | Not Covered |
| Theft | Covered | Not Covered | Not Covered |
| Breakage & Leakage | Covered* | Not Covered | Not Covered |
| Ordinary Wear & Tear | Excluded | Excluded | Excluded |
| Inherent Vice | Excluded | Excluded | Excluded |
| Intentional Mismanagement | Excluded | Excluded | Excluded |
*Covered under ICC A unless caused by an excluded reason like inherent vice.
A Closer Look at Each Clause
ICC A: Maximum Protection
ICC A is an "All Risks" policy — it covers physical loss or damage to your cargo unless specifically excluded (e.g., willful misconduct, inadequate packing, war and strikes — though war/strikes cover can often be added back separately).
Best for: high-value goods, electronics, sensitive equipment, consumer goods, and any shipper who wants maximum peace of mind.
ICC B: The Middle Ground
ICC B moves to a "Named Perils" basis, covering only the specific events listed — including fire, explosion, vessel grounding or collision, earthquake, lightning, and water ingress.
What's missing vs. ICC A: theft of entire packages, piracy (though sometimes added back by insurers), and breakage/leakage not caused by a listed peril.
Best for: bulk cargoes like coal or grain, robust goods where theft is less of a concern, or where a lower premium is a priority.
ICC C: Major Hazards Only
ICC C is the most restricted standard clause, often called "Fire and Collision" cover. It covers only catastrophic events — fire, explosion, vessel grounding or collision, and general average sacrifice.
What's missing vs. ICC B: earthquake, lightning, water damage, washing overboard, and theft — a significant reduction in protection.
Best for: low-value, non-sensitive cargo where you're only concerned about catastrophic events. Not recommended for most general merchandise.
How to Choose the Right Clause for Your Shipment
- Consider your cargo's nature — Is it fragile, high-value, or prone to theft? Choose ICC A. Is it robust and low-value? ICC B or C may suffice.
- Evaluate the transit route — Shipping through high-piracy waters or rough seas favors ICC A.
- Weigh cost against risk — ICC C is cheapest, but the cost of an uninsured claim usually far exceeds the premium saved. ICC A is generally the recommended default for most businesses.
What Is a Marine Open Insurance Policy?
A Marine Open Declaration Policy lets you insure all your shipments for an entire year under a single policy — a major advantage if you ship regularly, since you don't need to arrange fresh cover for every consignment.
Key highlights:
- Provides automatic, continuous cover for regular exporters/importers.
- Premium is paid in advance based on a projected annual sum insured (typically at least 4x your single-shipment/per-bottom limit).
- Every shipment must be declared without exception; adjustments to premium and sum insured are made based on these declarations.
- The sum insured can be enhanced up to 4 times during the year if needed.
- Genuine errors or omissions in declarations can often be rectified even after a loss.
- Unused sum insured is refunded after the policy expires.
Open policies are available for domestic (inland) movement as well as import/export shipments between countries.
Documents Needed to Issue a Marine Cargo Policy
To get your policy issued quickly, keep these ready:
- Copy of the Invoice
- Copy of the Packing List (number of packages, net/gross weight, packing type, contents)
- Applicable INCO Term
- Copy of GST Certificate
- Copy of PAN Card or Certificate of Incorporation
What Risks Are Excluded from Marine Insurance?
Regardless of which clause you choose, standard exclusions apply across all policies:
- Willful misconduct of the insured
- Ordinary leakage (liquid cargo) or ordinary loss in weight
- Ordinary wear and tear
- Improper or inadequate packing
- Inherent vice (the cargo's own natural tendency to deteriorate)
- Insolvency of the carrier
- Deliberate damage
- Nuclear weapons
- Damage caused by rats and vermin
Frequently Asked Questions
Is ICC A always the best choice?
For most general merchandise and high-value cargo, yes — ICC A's "all risks" basis provides the broadest protection and the fewest coverage surprises. ICC B or C can be reasonable, lower-cost choices for robust, low-value bulk cargo where the specific excluded risks are genuinely unlikely.
What's the real difference between ICC B and ICC C?
ICC C only responds to major hazards like fire, explosion, and vessel collision. ICC B adds protection against earthquake, lightning, water damage, and washing overboard — perils that ICC C leaves completely uninsured.
Does marine insurance cover cargo transported by air or road, not just sea?
Yes. Despite the name, marine cargo insurance covers transit by sea, air, road, rail, post, or courier — the "marine" label refers to the type of policy, not the mode of transport.
Can I insure all my shipments under one policy instead of buying insurance per shipment?
Yes — a Marine Open Declaration Policy covers all your shipments for a full year under one policy, which is far more convenient for businesses that ship regularly.
Get the Right Marine Cover for Your Shipment
Choosing between ICC A, B, and C shouldn't be a guessing game — it should be based on your cargo, your route, and your risk appetite. With over 27 years of EXIM consulting experience, MULTIMODAL helps Indian importers and exporters choose and arrange the right marine cargo cover, without over-paying for protection they don't need or under-insuring the risks that matter most.