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🚢 '''Institute Cargo Clauses''' are a set of standardized [[Definition:Policy wording | policy wordings]] published by the Institute of London Underwriters (now maintained by the International Underwriting Association) that define the scope of coverage for goods in transit under [[Definition:Marine cargo insurance | marine cargo insurance]] policies worldwide. Three primary versions exist—Institute Cargo Clauses (A), (B), and (C)—each providing a different breadth of cover, with Clause A offering the widest [[Definition:All-risks coverage | all-risks]] protection and Clause C the most restrictive, named-perils form. These clauses serve as the global benchmark: even markets outside [[Definition:Lloyd's of London | Lloyd's]] routinely incorporate or reference them when structuring cargo [[Definition:Insurance policy | policies]].

📦 Under Clause A, the [[Definition:Insured | insured]] enjoys coverage against all risks of physical loss or damage to cargo, subject to specific [[Definition:Policy exclusion | exclusions]] such as inherent vice, willful misconduct, ordinary leakage, and delay. Clauses B and C progressively narrow the covered perils; Clause B covers events like fire, explosion, vessel sinking, overturning of conveyance, earthquake, and washing overboard, while Clause C strips back further to the most catastrophic scenarios. Ancillary clauses—such as the Institute War Clauses (Cargo) and Institute Strikes Clauses (Cargo)—can be attached to extend protection for [[Definition:War risk | war risks]] and [[Definition:Strikes, riots, and civil commotions (SRCC) | strikes, riots, and civil commotions]]. [[Definition:Underwriting | Underwriters]] select and combine clauses based on the nature of the cargo, trade route, mode of transport, and the [[Definition:Policyholder | buyer's]] risk appetite.

🌍 The Institute Cargo Clauses matter because they bring uniformity and predictability to a market where goods move across multiple jurisdictions and through the hands of numerous parties. [[Definition:Broker | Brokers]], [[Definition:Insurance carrier | carriers]], and [[Definition:Claims adjuster | claims adjusters]] around the world share a common vocabulary when an Institute clause set is referenced, which streamlines [[Definition:Placement | placement]], [[Definition:Claim | claims]] negotiation, and [[Definition:Subrogation | subrogation]]. For the [[Definition:Marine insurance | marine insurance]] market specifically, these clauses reduce frictional costs and legal uncertainty that would otherwise arise if every policy were drafted from scratch. Their periodic revision also ensures the wordings evolve alongside changes in global trade patterns, vessel technology, and emerging perils.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Marine cargo insurance]]
* [[Definition:Institute clauses]]
* [[Definition:All-risks coverage]]
* [[Definition:War risk]]
* [[Definition:Subrogation]]
* [[Definition:Lloyd's of London]]
{{Div col end}}

Definition:Institute Cargo Clauses - Revision history

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