Institute War clauses (Cargo)-2009

ICC-A is an All-Risk cover on named exclusions basis. One of the exclusions relate to the War group of perils. Then how are War risks covered under marine cargo policies? Almost as a matter of routine, Institute War Clauses(Cargo) are attached along with ICC thereby nullifying the exclusion.

There are certain interesting differences between ICC and IWC apart from the apparent risks covered. General exclusions are common except that IWC have one additional exclusion arising out of “ frustration of the voyage or adventure”.

The Duration clause is markedly different. The risk under IWC attaches only when the cargo is placed on board the oversea vessel and terminates on the subject- matter being discharged from the vessel at the final port/place of discharge OR 15 days after arrival of the vessel at such port/place of discharge. War risk as per the Waterborne Agreement will not be in force on land. There is one exception though. During transshipment at any intermediate port, war cover continues for a period of upto 15 days even if the cargo is on land.

If cargo is discharged from the oversea vessel mid-stream on to crafts, lighters, etc. limited cover against derelict mines or torpedoes is available for a period of upto 60 days from date of discharge.