- June 16, 2026
- Posted by: Rishabh Agrawal
- Categories: Export Financing, Blog
Almost every Indian exporter who ships their goods overseas has encountered marine cargo insurance in India. When your certificate is filed and the shipment leaves, it is natural to assume that the goods are covered for whatever goes wrong during the transit. And this is where the problem starts.
Marine cargo insurance for Indian exporters is an excellent safety net. However, it is not a single financial product; it has different coverage levels, and the one you choose among these determines whether the real loss gets paid or disputed. The three clauses that define this coverage are the ICC A, ICC B, and ICC C. For an SME exporter, understanding what these clauses are and how they are different is crucial.
Over the last few years, India’s export volumes have skyrocketed, specifically in sectors like textiles, agricultural products, engineering goods, organic chemicals, and pharmaceuticals. When the routes for these exports are complex, each handling point exposes the goods to the risk of damage or loss. In such situations, defining who bears the loss requires knowledge of ICC A B C Clauses.
This blog explains what each clause covers and how to determine which one applies to your shipment.
What are Institute Cargo Clauses?
ICC Clauses in marine insurance refer to the standardized guidelines used across the globe to define the coverage provided under marine cargo insurance. By clearly explaining the protections, exclusions, and responsibilities, marine cargo clauses ensure consistency in all insurance contracts, no matter which countries they are in.
Cargo insurance for SME exporters can seem complicated at times. However, once you have understood the clauses, you can determine how much risk has actually been transferred to the insurer and how much risk still remains with you.
Now, let us have a closer look at the Clauses A, B and C of ICC:
ICC A
- What is ICC A?
This is the broadest coverage because it covers both physical loss and damage (unless these are specifically excluded in the policy). Often referred to as the ICC A all risk coverage, this clause is widely chosen by many exporters. However, it is essential that you read the inclusions in the “all risks” section before finalizing anything.
| Section | Details |
| What Does ICC A Cover? | Theft, Pilferage, Breakage, Rough handling damage, Wet cargo, Crushed cartons, Damaged goods during transit, Physical loss |
| Important Note | Coverage for these risks is subject to policy terms, conditions, and proof of loss or damage. |
| Exclusions Under ICC A | Poor packing, Delay-related loss, Inherent vice, Natural deterioration, Ordinary leakage, Ordinary wear and tear, Wrong declaration, War, Strike, Riot, Civil commotion, Buyer dissatisfaction, Marketplace penalties, Lost profit, Bad reviews |
| ICC A is Best For | E-commerce exports, Fragile goods, Important buyers, New routes, High-value cargo, Urgent orders, Shipments involving multiple handovers |
ICC B
- What is ICC B?
Sitting right between ICC A and C, the Institute Cargo Clause B is known to offer a limited coverage in comparison to Clause A while still being more flexible than Clause C. ICC B coverage is applicable only for accidental damages. However, exporters can also request additional coverage to protect their valuable items.
| Section | Details |
| What Does ICC B Cover? | Losses caused by major voyage accidents, Earthquake, Volcanic eruption, Lightning, Washing overboard, Entry of sea, lake, or river water into the vessel, container, conveyance, or place of storage |
| Exclusions Under ICC B | Theft, Pilferage, Rough handling damage, Contamination, Ordinary carton damage, and other losses where the cause does not match the specific risks covered under ICC B |
| ICC B is Best For | Stable goods, Shipments on familiar routes, Exporters seeking more protection than basic coverage but not requiring comprehensive all-risk insurance |
ICC C
- What is ICC C?
The ICC C basic coverage typically concerns only major transport-related events, such as fire, collision, or capsizing. If minor damage is caused as a result of rough handling or if loss occurs, Clause C doesn’t stand. This is one of the narrowest clauses available under marine cargo insurance for Indian exporters.
| Section | Details |
| What Does ICC C Cover? | Basic-level coverage for losses arising from major transport accidents, such as vessel collision, truck overturning, or other serious transport events specifically listed in the policy |
| Exclusions Under ICC C | Wet cartons, Crushed packaging, Theft, Pilferage, Minor shortage, Rough handling damage, Unexplained loss, and many other risks not specifically covered under the policy |
| ICC C is Best For | Low-value goods, Low-risk goods, Stable products, and shipments moving through simple and predictable routes |
Institute Cargo Clauses A B C Difference: A Comparative Account
By now, you have a clear idea of the Clauses A, B and C of ICC. Next, let us understand how they are different from each other.
| Features | ICC A All Risks Cover | ICC B Named Risks Cover | ICC C Basic Risks Cover |
| Type of Coverage | All risks (except exclusions) | Medium coverage (only for specific risks) | Minimum coverage (very basic inclusions) |
| Use of Coverage | For high-value, sensitive, or fragile cargo | For general cargo with medium-level risk | For low-value, bulk, or non-fragile cargo |
| Risks Covered | Maximum | Medium | Little |
| Exclusions | Specific: war, wilful misconduct, delay, etc. | Broader exclusions than ICC A | Most comprehensive exclusions |
| Cost of Premium | Very High | Medium | Very Low |
Documents Required for Marine Insurance Claims
Having a strong claim file is the key to ensuring that your claim isn’t weak or rejected. Here are some documents you need to keep handy before your shipment begins transit:
- Insurance policy or certificate
- Airway bill or bill of lading
- Commercial invoice and packing list
- Photos before dispatch
- Videos before dispatch
- Buyer-side damage proof
- Survey report
- Written intimation
Steps for Filing Marine Cargo Insurance Claim
Just knowing the ICC Clauses in marine insurance and choosing the right one for your shipment is not enough. You also need to understand the exact steps that need to be followed if you want to file a claim. We have outlined the process below:
- Thoroughly assess the damage and identify its cause
- Notify the insurer about the event within the claim filing deadline
- The insurer sends a surveyor who will analyze the loss, prepare an assessment report, and submit it to the insurance service provider
- Once the report is approved, the claim amount is disbursed
Credlix: Offering Reliable Financial Protection to Indian Exporters
Choosing the right ICC clause protects your cargo. But even if you have the right insurance in place, unforeseen circumstances such as a damaged shipment, a delayed claim, or a disputed consignment can create a gap in your cash flow. This gap is for your business to absorb. For Indian exporters, the period between shipment dispatch and claim amount disbursal holds the maximum pressure. When your cargo loss lies in this window, it puts your working capital under strain. This is where Credlix steps in. We offer trade finance and export financing solutions that can help SMEs and exporters while they are waiting for cargo insurance for SME exporters to come into effect. So, if you need liquidity to keep your operations moving, you must come to Credlix.
FAQs–
- Is ICC A always the best choice for marine cargo insurance for Indian exporters?
Not necessarily. ICC A offers the widest coverage to exporters, which is why it is also termed ICC A all risk coverage. However, the right clause for you will depend on the goods you are shipping, the destination, and how you are packaging them.
- Does marine cargo insurance cover theft during international shipments?
Theft and pilferage are covered under ICC A, but not under ICC B or ICC C of the marine cargo insurance in India. If you are an SME exporter shipping high-value goods through routes with multiple handling points, having the right coverage will prove to be the most crucial the moment when one of your cartons goes missing.
- What happens if my cargo is damaged, but I filed the claim late?
Almost every marine insurance policy for exporters requires the insured to notify the insurer within a defined window after the damage is discovered. If you somehow miss this deadline, even by one day, it can either weaken your claim or invalidate it altogether. This is why experts recommend notifying the insurer as soon as you have identified the damagerd count was necessary to cover all the information related to the topic.
