القدس الفني للتأمين Comparison of Institute Cargo Clauses (A), (B) and (C)

The New Institute Cargo Clauses
The new clauses are not exact replacements of the old clauses. Some companies may still use the old clauses. The counterparts of the new cargo clauses are as follows:

New Cargo Clauses	Old Cargo Clauses
Institute Cargo Clauses (A)	Institute Cargo Clauses (All Risks)	(A.R.)
Institute Cargo Clauses (B)	Institute Cargo Clauses (With Average)	(W.A.)
Institute Cargo Clauses (C)	Institute Cargo Clauses (Free of Particular Average)	(F.P.A.)

Comparison of
Institute Cargo Clauses (A), (B) and (C)

LEGEND:
	Risks covered
	Risks not covered (or Exclusions)

Risks Covered and the Exclusions	Institute Cargo Clauses
	(A)	(B)	(C)
Loss or damage to the subject matter insured proximately caused by [in Clauses (A)] and reasonably attributable to [in Clauses (B) and (C)]:
Fire or explosion
Vessel or craft stranded, sunk, burnt or capsized
Land conveyance overturned or derailed
Collision or contact of vessel, craft or conveyance with any external object except water
Discharge of cargo at port of distress
	(A)	(B)	(C)
Earthquake, lightning or volcanic eruption
Malicious damage
Theft
Delay
Inherent vice or nature of the subject matter insured
Willful misconduct of the assured
	(A)	(B)	(C)
Loss or damage to the subject matter insured caused by:
General average sacrifice
Jettison
Washing overboard
Entry of sea, river or lake water into vessel, craft, conveyance, container or place of storage
Total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft
Piracy
	(A)	(B)	(C)
War
Strikes, riots and civil commotions, includes terrorists or any persons acting from a political motive
Use of any atomic or nuclear weapon
Ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear
Insufficiency or unsuitability of packing
The assured privy to the unseaworthiness of vessel or craft and/or unfitness of vessel, craft, conveyance or container at the time of loading
Insolvency or financial default of the owners or operators of the vessel

Endorsement of the Insurance Clauses

The term endorsement used in the endorsement of insurance clauses refers to the modifying of insurance to include risks not covered in the basic policies by adding suitable clauses and paying additional premium. For example, in the Institute Cargo Clauses none of the three basic policies covers the risks of war, strikes, riots, and civil commotions. In order to cover against such risks, the F.C.&S. Clause (Free of Capture and Seizure Clause) and the F.S.R.&C.C. Clause (Free of Strikes, Riots and Civil Commotions Clause) are deleted from the policy (by stamping the word "DELETED" over such clauses usually) and the Institute War Clauses and the Institute Strike Clauses are endorsed.

The endorsement usually is in the form of pre-printed clauses attached (i.e., stapled, gummed or taped) to the policy. Some policy forms may be provided with an endorsement space wherein the clauses are typed and/or attached.

There are clauses which are approved by certain associations (e.g. bank, trade, etc.) to suit the particular market needs. For example, the Bank Clause:

"It is warranted and agreed to by the Assured and the Company that in the event of loss or damage becoming recoverable under this Policy, the Company will not be liable for more than its share of the loss or damage at the rate of exchange mentioned in this Policy."

(The word "Company" above refers to the insurance company.)

The exporter may consult the insurance company or its agents for any specific endorsements that may be required in a particular market and trade.

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