The Institute Cargo Clauses are a set oftermsforcargo insurancepoliciesvoluntarily adopted asstandardterms by many internationalmarine insuranceorganizations, including the Institute Of LondonUnderwritersand the American Institute Of Marine Underwriters. Widestinsurancecoveris provided under ‘InstituteCargoClause A’, a more restrictive cover under ‘Institute Cargo ClauseB’, and the most restrictive cover under ‘Institute Cargo Clause C.’
Clause A is sometimes referred to as “Full Cover” or “All Risk”, Clause B as “With Particular Average”, and Clause C as “Free of Particular Average”.
|Insurance, All-risk||This type of insurance offers the shipper the broadest coverage available, covering against all losses that may occur in transit.|
|Insurance, General-Average||In water transportation, the deliberate sacrifice of cargo to make the vessel safe for the remaining cargo.Those sharing in the spared cargo proportionately cover the loss.|
|Insurance, Particular Average||A Marine insurance term to refer to partial loss on an individual shipment from one of the perils insured against, regardless of the balance of the cargo. Particular-average insurance can usually be obtained, but the loss must be in excess of a certain percentage of the insured value of the shipment, usually three to five percent, before a claim will be allowed by the company.|