(C) is basic cover but still covers the obvious stuff.

It covers major casualty to the conveyance, not damage to your cargo. Water, theft and handling — the common causes — are all out.

It is cheaper, so it is a sensible saving.

Only if you could genuinely absorb every partial loss. For containerised goods the saving over (A)/(B) rarely justifies the exposure, and a bank may reject it outright.

Institute Cargo Clauses (C)

Major casualty only — the shortest list

Catastrophe cover. It responds when something happens to the ship, aircraft or truck, not when something happens to your cargo.

Rate factor ×0.58Named-perils structure

What it covers

Fire or explosion
Stranding, grounding, sinking or capsizing
Overturning or derailment of land conveyance
Collision of the vessel or conveyance
Discharge of cargo at a port of distress
General average sacrifice and jettison

What it does not cover

Water damage of any kind, including sea water entering the container
Washing overboard
Earthquake, volcanic eruption and lightning
Theft, pilferage and non-delivery
Handling damage and breakage
Everything in the (A) exclusion list also applies

War and strikes can be bought back as separate Institute clauses — see add-ons. Delay, inherent vice and insufficient packing cannot.

When this is the right choice

Low-value bulk where the only loss worth insuring is the total one — and where the buyer accepts it. Rarely appropriate for containerised manufactured goods.

Commodities that typically sit here

General merchandise, mixedPaper & packaging productsOffice & stationery goodsIndustrial machinery, newPlastic resin & pelletsGrain & agricultural bulkCement, minerals & aggregates

Compared with the others

ICC (A)×1.00

All risks of loss or damage, except what is excluded

ICC (B)×0.76

Named perils, including water damage and washing overboard

Full peril-by-peril matrix →

Understanding ICC (C)

Institute Cargo Clauses (C) is the narrowest standard cargo cover — catastrophe insurance for the conveyance rather than protection for the cargo itself. It responds when something happens to the ship, aircraft or vehicle: fire or explosion; the vessel stranding, grounding, sinking or capsizing; collision; overturning or derailment of a land conveyance; discharge of cargo at a port of distress; and general average sacrifice and jettison. That is essentially the whole list.

Crucially, (C) does not cover water damage of any kind — not even sea water entering the container — nor washing overboard, earthquake, theft, pilferage, non-delivery, or ordinary handling damage. For most containerised trade this leaves the majority of realistic losses uninsured, which is why (C) is rarely the right answer for manufactured or containerised goods. Where it does make sense is low-value bulk cargo whose only loss worth insuring is a total one — where a partial loss would be absorbed anyway, the unit value is low, and a buyer or contract has explicitly accepted (C).

Even then it is worth confirming that no letter of credit or sale term quietly requires more: banks and CIF/CIP buyers commonly reject cover written below all-risks, and discovering that after shipment is expensive. As a rule of thumb, if a partial loss on the cargo would hurt, (C) is the wrong clause.

How a loss resolves under ICC (C)

The vessel catches fire and the entire consignment is destroyed.

Covered under (C): fire is a listed peril and this is exactly the total-loss catastrophe (C) is for.

Sea water enters the hold and damages half the cargo.

Not covered under (C): water damage, including sea-water ingress, is outside the clause entirely. (B) or (A) would respond.

A carton is dropped and crushed during discharge.

Not covered under (C): ordinary handling damage is not a listed peril. Only a total loss of a package lost overboard would attract cover, and only under (B) or (A).

Common misconceptions

"(C) is basic cover but still covers the obvious stuff.": It covers major casualty to the conveyance, not damage to your cargo. Water, theft and handling — the common causes — are all out.
"It is cheaper, so it is a sensible saving.": Only if you could genuinely absorb every partial loss. For containerised goods the saving over (A)/(B) rarely justifies the exposure, and a bank may reject it outright.

What would ICC (C) cost on your cargo?

The rate factor above is only one term in the calculation — commodity, route, mode and deductible move the number just as much. Price it against a real shipment and see all three clause levels side by side.

Rate a shipment at ICC (C)

This page summarises the Institute Cargo Clauses (C) family in plain language. It is not the wording, and insurers issue amended and market-specific versions. The certificate, policy schedule and attached clauses issued to you govern your cover and prevail over anything here. Nothing on this page is a recommendation that ICC (C) is suitable for your cargo — see the Terms for our role.