Marine Cargo Insurance Clauses: ICC(A), ICC(B) and ICC(C) Explained for Importers

Cargo insurance for China-to-Bangladesh shipments is usually sold and bought as a single line-item cost without much discussion of what is actually covered, and that gap matters more than most importers realise until a claim is denied. The Institute Cargo Clauses — commonly referred to as ICC(A), ICC(B) and ICC(C) — are the standard policy wordings used across international marine insurance to define exactly what causes of loss a policy responds to, and the difference between the three tiers is not a minor detail. An importer holding a C-tier policy who suffers a claim that only A-tier would have covered has, in practical terms, been paying for insurance that was never going to protect them against the risk that actually materialised.

ICC(C): The Narrowest Cover, Built Around Total Loss Events

ICC(C) covers a short, specifically named list of major casualty events: fire or explosion, the vessel being stranded, grounded, sunk or capsized, overturning or derailment of land transport, collision of the carrying vessel with another object, and general average sacrifice or jettison. What it explicitly does not cover is the everyday damage that actually generates most cargo claims — theft, pilferage, non-delivery of individual packages, water damage from rain or condensation, rough handling that cracks or dents cargo without the vessel itself suffering a casualty. A C-tier policy is essentially catastrophe cover: it protects against the ship sinking or burning, not against a container arriving with half its contents missing or water-stained.

ICC(B): Adds Named Perils Beyond Catastrophic Loss

ICC(B) includes everything ICC(C) covers, plus a broader list of named perils: earthquake and volcanic eruption, cargo being washed overboard, entry of sea, lake or river water into the vessel or container, and total loss of a package during loading or unloading (falling overboard, for example). This closes some of the biggest gaps in C-tier cover, particularly around water ingress, which is a genuinely common cause of cargo damage claims on the China-Bangladesh route given the monsoon exposure at Chattogram port and the number of handoffs a shipment goes through. B-tier still does not cover theft, general handling damage that falls short of total loss of a package, or partial damage to goods that were not washed overboard or subject to water ingress as specifically defined.

ICC(A): All Risks, Subject to Specific Exclusions

ICC(A) flips the structure entirely: instead of listing what is covered, it covers all risks of physical loss or damage to the cargo except for a defined list of exclusions, which generally includes inherent vice (the cargo’s own tendency to deteriorate, such as fruit naturally ripening and spoiling), ordinary wear and tear, insufficient or unsuitable packing, and loss caused by the insured’s own wilful misconduct. This means theft, pilferage, rough handling damage and most of the everyday causes of partial cargo loss that B and C tiers exclude are covered under A-tier, which is why A-tier is the standard recommendation for higher-value cargo or shipments where partial pilferage is a realistic risk, such as consumer electronics or branded goods moving through ports with known pilferage histories.

War and Strikes Clauses Sit Outside All Three Tiers

None of the three ICC tiers cover war risk or strikes, riots and civil commotion by default — these are excluded from all of ICC(A), (B) and (C) and require separate additional clauses (the Institute War Clauses and Institute Strikes Clauses) if the importer wants that specific cover. This surprises some buyers who assume an “all risks” A-tier policy genuinely covers everything, when in fact war and strikes risk sits in a completely separate policy layer that has to be requested and priced independently, and is generally more relevant to specific higher-risk trade lanes or periods of regional instability than to routine China-Bangladesh container shipping.

Choosing a Tier for a Real China-Bangladesh Shipment

The right tier depends on cargo value, packaging quality and the specific risk profile of the shipment rather than a blanket rule. A bulk shipment of low-value, well-packed industrial raw material with limited pilferage appeal might reasonably be insured at B-tier, accepting that minor handling damage is a cost of doing business while still protecting against the bigger water-ingress and casualty risks. A container of branded consumer electronics or high-value finished goods, where partial pilferage of a few cartons is a realistic scenario that would not trigger a B or C-tier claim at all, generally justifies the additional premium for A-tier cover. Whoever is responsible for arranging insurance under the shipment’s Incoterm — buyer or seller, depending on whether the deal is on FOB, CIF or another term — should confirm the actual tier being purchased, not just assume “cargo insurance” on the invoice means comprehensive cover.

• ICC(C) covers major casualty events only — fire, sinking, stranding, collision — not everyday handling or water damage.
• ICC(B) adds water ingress, earthquake and total loss of packages during loading, but still excludes theft and partial handling damage.
• ICC(A) covers all risks except specific exclusions like inherent vice, poor packing and wear and tear — the only tier that generally covers theft and pilferage.
• War and strikes risk is excluded from all three tiers and must be added separately if needed.
• Confirm the actual ICC tier on your policy, not just that a line-item called “insurance” exists on the invoice.

Filing a Claim: What Insurers Actually Ask For

A cargo insurance claim moves faster and is less likely to be disputed when the documentation is assembled before the insurer asks for it, rather than gathered piecemeal after a query comes back. At minimum, insurers generally expect the original insurance certificate or policy showing the ICC tier purchased, the commercial invoice and packing list showing the insured value, photographs of the damaged cargo and its packaging taken at the point of discovery, and a survey report from a qualified cargo surveyor for anything beyond minor damage, since insurers often will not process a significant claim on the importer’s own description of the damage alone. Where the damage might relate to the cause of loss discussed in our cargo securing guide — shifting, impact, or water ingress during transit — the container’s condition at the point of opening and any visible displacement of dunnage inside are also worth documenting immediately, since this evidence degrades quickly once unloading and handling continue.

One point worth remembering when comparing quotes between insurers: a lower premium quoted against a lower ICC tier is not automatically the better deal once the actual risk profile of the cargo is considered, since the premium saved on a C-tier policy can be far smaller than the value of a single pilferage or handling-damage claim that tier would never have paid out on in the first place. Comparing insurance costs across tiers only makes sense alongside a realistic assessment of what could actually go wrong with that specific cargo on that specific route.

DE International helps Bangladeshi importers understand cargo insurance options as part of full door-to-door shipping arrangements from China. If you are unsure what level of cover your current shipments carry, our logistics and consultation services can help you check before a claim, not after. See also our guides on why you shouldn’t skip cargo insurance and what to do when your shipment arrives damaged. Reach us through our contact page or browse the shop.