Insurance (ICC A & B)

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Aziz
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Joined: 02/19/2009
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The LC requires Insurance with INSTITUTE CARGO CLAUSE B. Our insurance is showing INSTITUTE CARGO CLAUSE A.

Please clarify this is discrepancy?

ICC A is Warehouse to Warehouse and ICC B is Port to Port, is it ok?

henson lim
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Joined: 07/23/2010
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Insurance ICC A & ICC B

ICC A B & C are different types of insurance coverages.  It is suggested that you read specimen of these insurance clauses. As advised earlier ICC A covers all risks or all accidents while ICC B & C cover specific named perils listed in the clauses.  The warehouse to warehouse and port to port describe the period for which cargo is being insured, and can such coverage can be bought according to your requirement under ICC A B or C presumably subject to additional premium as against a port to port coverage.  Hope this helps. 

Frammi
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Joined: 08/17/2007
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ICC A and ICC B

Your interpretation  "ICC A is Warehouse to Warehouse and ICC B is Port to Port" - if you meant that as a sounding, not a a description of credit and documents contextes - is not correct.

I found the following link which should help you understand the difference:

http://www.insurance.francoudi.com/Main/main.aspx?id=401:

Institute Cargo Clause C or ICC 'C'

This is the most restricted coverage and subject to the listed
exclusions, covers loss or damage to the subject matter insured caused
by:

  • Fire or explosions
  • Stranding, grounding, sinking or capsizing
  • Overturning or derailment
  • Collision or contact of vessel craft or conveyance with any external object other than water
  • Discharge of cargo at port of distress
  • General Average Losses
  • Jettison

This Clause covers major casualties during the land or sea transit
and tends to be used for cargo that is not easily damaged like scrap
steel, coal, oil in bulk, etc.

Institute Cargo Clause B or ICC 'B'

This cover is wider and apart from the risks covered under ICC ‘C’, it also covers loss or damage to cargo caused by:

  • Earthquake, volcanic eruption or lightning
  • Water damage by entry of sea/river water
  • Total loss of package lost overboard
  • Total loss of package dropped during loading and unloading

There is significant additional coverage against wet damage from
sea, lake river water and accidents in loading and discharge are
covered but there is no coverage for theft, pilferage, shortage and
non-delivery.

Institute Cargo Clause A or ICC ‘A’

This option is the widest of all three and is generally summed up as
‘All Risks’ of loss or damage to the insured cargo. The cover includes
everything under both the foregoing Clauses and also:

  • Breakage
  • Scratching, chipping, denting and bruising
  • Theft, malicious damage, non-delivery
  • All water damages including rain water damage

Exclusions

The Institute Cargo Clauses incorporates the following exclusions from the scope of cover:

  • Willful misconduct of the assured
  • Ordinary leakage, ordinary loss in weight or volume or ordinary wear and tear
  • Insufficiency or unsuitability of packing or preparation of packing of the insured cargo
  • Inherent vice or nature of the cargo
  • Delay
  • Insolvency or financial default of carriers
  • Un-seaworthiness and unfitness of the vessel or conveyance
  • War, strikes, riots and civil commotion (these risks are
    excluded under all the clauses but can be insured by payment of an
    additional premium)  

So, coming back to your question. Even if your sounding (if so) was not correct, as ICC B is included in ICC A, there is no discrepancy.

 

If your last line was meant as a description, there was also no discrepancy as "port to port" is included in the "from warehouse to warehouse"-clause.

I hops this helped out.

 

   -Each long journey starts with a small step-

Best regards

Frammi