Clauses under Marine Open Insurance

Marine insurance is no less than a safe haven for shippers and traders as it helps to safeguard against financial loss in case of any unforeseen event. The correct marine cargo insurance policy must be purchased depending on the nature, scope, and type of business. However, it is also essential to understand the various clauses under a marine open insurance policy for a better decision-making process.

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Institute Cargo Clauses

Institute Cargo Clauses under marine insurance policy defines the extent of coverage provided under a particular plan. These clauses mention the type of items that are covered in case of any damage or loss to the consignment. Institute cargo clauses usually cover everything, including the goods themselves, the container in which the cargo is placed, or, the vessel in which the shipment is being transported.

Clauses Under Marine Insurance

Institute Cargo Clauses were first developed by the International Chamber of Commerce, a global business governing body. These clauses were first announced in 1982 but have undergone profound changes due to changing business patterns, increasing global risks, and threats, etc.

Institute Cargo Clauses under marine open insurance policy serve a specific purpose. These clauses specify the terms that are covered and those that are not in case of damage or loss to the shipment.

There are three basic categories of these clauses: A, B, and C. The differences between these depend on the levels of restriction these clauses provide. Clause A is the widest of the three, and, Clause C is the most restrictive.

Similar to auto insurance, higher coverage is given on higher premium payments. The three clauses also function on parallel lines.

  1. Institute Cargo Clause A

    Institute Cargo Clause A provides you with the widest form of coverage. Also known as ‘All Risk’ cover, you need to pay a maximum premium for purchasing this policy. Clause A covers the cargo, goods, container, and, vessel. If there are any exclusions, they are generally mentioned under the General Exclusion Clause.

  2. Institute Cargo Clause B

    Institute Cargo Clause B is a bit restrictive; thus, the premium amount for this clause is moderate. All risks are not covered, and the shipper/trader can request the coverage of partial cargo or for valuable items.

  3. Institute Cargo Clause C

    Institute Cargo Clause C is considered the most restrictive type of coverage, making it the cheapest in premium payment. The coverage of risks under this clause is minimal.

    Each clause provides detailed parameters of its inclusions and exclusions. Due to the difference in cover, the premium payable also varies. It is to be noted that each institute cargo clause is reserved for goods in transit. Goods in transit are the goods that are departed from the loading location and are yet to reach the final destination. 


As a shipper or transporter, it is important to be informed about the Institute Cargo Clauses under marine open insurance. These clauses play a vital role in the purchase decision. The experts at Policybazaar can help clear doubts in order to make informed decisions about buying the right marine open policy for your business.

Written By: PolicyBazaar - Updated: 10 August 2023

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Policybazaar for Business - Marine Insurance - Customer Reviews
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Based on 114 reviews
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3.8 April 20, 2023
Great Experience
I recently purchased Marine insurance from Policybazaar for my shipping business and I must say I am thoroughly impressed with their service and coverage. From start to finish, the experience has been smooth and hassle-free.Thankyou.
4.3 April 03, 2023
Provides Comprehensive Protection
When it comes to coverage, Marine insurance that i bought from PolicyBazaar has exceeded my expectations. It provides comprehensive protection for my cargo and vessels during transit, ensuring I can focus on my business operations with peace of mind. Thankyou.
4.3 March 17, 2023
Excellent Services
I highly recommend Marine insurance from PolicyBazaar website to anyone in the shipping or logistics industry. Their user-friendly website, comprehensive coverage, and excellent customer service make them stand out from the competition. With Policybazaar, I feel confident in navigating the high seas, knowing that my business is well-protected. Thank you, Policybazaar.
4.3 February 28, 2023
User Friendly Interface
The website's user-friendly interface made it easy to compare different plans and find the perfect fit for my business needs.Thanks
4.3 February 11, 2023
Prompt Services
I appreciate the transparency and honesty with which Policybazaar handled my claims. They were prompt in processing my claim and their claim settlement process was hassle-free.Thanks PolicyBazaar.
3.8 February 10, 2023
Exceeds Expectations
I recently had the pleasure of purchsing marine insurance from Policy bazaar website and I must say it has been an outstnding experience from start to finish. I am thrilled to share my positive customer review, as this truly exceeded my expectations. Thanks PB.
3.8 January 31, 2023
Easy Navigation
The ease of navigating the Policy bazaar website and finding the right marine insurance policy was impressive. The website's user-friendly interface and intuitive design made it incredibly simple to compare various options, understand the coverage details and make an informed decision. I appreciated the transparency provided throughout the process. Thanks.
3.8 January 21, 2023
Excellent Support
The customer service provided by Policy bazaar was decent. Their team was responsive, knowledgeable and went above and beyond to assist me at every step. Their professionalism and commitment to customer satisfaction were truly commendable.Thankyou.
4.3 January 11, 2023
Sanjeev Rathor
Efficient Process
When it came to claims processing, Policy bazaar demonstrated remarkable eficiency and effectivenes. I had an unfortunate incident during the coverage period and filing a claim was a breeze. The entire process was streamlined and their team guided me throuugh every necssary step, making it hassle-free. The promptness with which my claim was setled reflected their commitment to their customers' well-being and peace of mind. Thankyou.
3.8 January 01, 2023
Comprehensive Coverage
I must mention the comprehensive coverage provided by the marine insurance policy I purchasd through Policy bazaar. It offered me the necesary protection and peace of mind. Thankyou PolicyBazaar.