What are the Risks Covered By ICC (A)?

What are the Risks Covered By ICC (A)?

This clauses includes all risks of loss or damage to the subject-matter insured except by risks specifically excluded, General average and Salvage charges incurred to avoid loss from any cause or causes except those excluded by the policy liability under Both to Blame collision clause of the contract of affreightment.

Under this clause, the assured has only to show that the insured cargo was lost or damaged during the currency of the insurance.

General average is there where any extraordinary sacrifice or expenditure is voluntarily and reasonably made or insured at a time of peril for the purpose of preserving the property imperiled in the commend adventure.

There is a direct liability on the insurer for general average sacrifice which is treated in the same manner as particular average or partial loss claim. The Jettison is also included under this clause which relates to cargo or other property thrown overboard at time of peril to save the adventure from total loss.

When ship and cargo belong to different owners, such jettison would constitute a general average sacrifice but where only one interest (ownership) is involved, there would be no claim for general average sacrifice.

This clause also covers loss overboard of any sort. When goods are lost or damaged in an accident to the overland conveyance, this clause deemed to be covered. The institute malicious clause is also covered.

Institute Cargo Clauses (B) and (C):

These clauses are identical with only different of risks clause. The risks covered by these clauses are fire or explosion, vessel or craft being standard, granted sunk or capsized, overturning or derailment of land conveyance, collision on or contract of vessel craft, or conveyance with any external object other than water discharge of cargo at a port of distress, general average sacrifice and jettison.

Additional risks covered under ICC (B) are earthquake volcanic eruption or lightning, washing overload lake or river water into the vessel, craft, gold, conveyance, container, liftman or place of storage.

Similarity ship loss is also included which relates to total loss of any package lost overboard or dropped during loading or unloading operations of the vessel or craft.

These clauses are on the basis of “Named perils with exclusions” while ICC (A) is based on “All risks with exclusion” under the clauses of the “Named risks with exclusions” an additional burden on the assured is there because he has not only to show that the loss/damage occurred during the policy period but also that it was due to the operation of one of the named perils.

The assured is entitled to indemnity under the policy unless the insurers are able to establish that the loss/damage arose because of the operations of an excluded peril.

Institute War Clauses:

The risks covered under these clauses are war, civil war, revolution, rebellion, insurrection or civil strife arising there from, or any hostile act by or against a belligerent power.

It also includes capture, seizure, arrest, restraint or detainment arising from risks covered under (a) above and the conse­quences there of any attempt threat, torpedoes, bombs or other derelict weapon of war.

These clauses also cover genera average and salvage charges adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid, or in connection with the avoidance of loss from a risk covered.

There is exclusion of frustration which means that the insurance does not generate the completion of the voyage and the arrival of the goods at destination.

Increased Value Insurance Clause:

Insurance may be arranged to cover increased value of the cargo i.e. the market value of goods at destination port in the date of landing is higher than CIF and duty value of the cargo. The assured is the holder or assignee of the import license or is the actual user who has purchased goods from a recognised Export House.

This policy is not assignable. No claim shall be paid for increased value until the claim under the CIF value insurance policy is payable and proof of liability for loss under that policy shall be furnished to the company.

This policy is not valid if affected after arrival of the vessel at destination. Insurance in not on agreed value basis. The claim payable together with CIF value, duty policy and increased value policies shall not exceed the specified proportion of the market value of the goods at destination.