What are Institute Cargo Clauses A, B and C?
The Institute Cargo Clauses are the standard wordings used for marine cargo insurance worldwide, including in Kenya. ICC (A) covers all risks of loss or damage except listed exclusions. ICC (B) and ICC (C) cover only named events, with (C) the narrowest. Most Kenyan importers are best served by ICC (A). See our marine cargo insurance overview for the local import rule.
What each clause covers
| Event | ICC (A) | ICC (B) | ICC (C) |
|---|---|---|---|
| Fire or explosion | Yes | Yes | Yes |
| Ship stranded, grounded, sunk or capsized | Yes | Yes | Yes |
| Road vehicle overturned or train derailed | Yes | Yes | Yes |
| Collision with anything other than water | Yes | Yes | Yes |
| Discharge at a port of distress | Yes | Yes | Yes |
| General average sacrifice and jettison | Yes | Yes | Yes |
| Earthquake, volcanic eruption or lightning | Yes | Yes | No |
| Washing overboard | Yes | Yes | No |
| Sea, lake or river water entering the ship, container or store | Yes | Yes | No |
| Total loss of a package dropped during loading or unloading | Yes | Yes | No |
| Theft, pilferage and non-delivery | Yes | No | No |
| Rough handling, breakage, malicious damage | Yes | No | No |
- ICC (A)
- Yes
- ICC (B)
- Yes
- ICC (C)
- Yes
- ICC (A)
- Yes
- ICC (B)
- Yes
- ICC (C)
- Yes
- ICC (A)
- Yes
- ICC (B)
- Yes
- ICC (C)
- Yes
- ICC (A)
- Yes
- ICC (B)
- Yes
- ICC (C)
- Yes
- ICC (A)
- Yes
- ICC (B)
- Yes
- ICC (C)
- Yes
- ICC (A)
- Yes
- ICC (B)
- Yes
- ICC (C)
- Yes
- ICC (A)
- Yes
- ICC (B)
- Yes
- ICC (C)
- No
- ICC (A)
- Yes
- ICC (B)
- Yes
- ICC (C)
- No
- ICC (A)
- Yes
- ICC (B)
- Yes
- ICC (C)
- No
- ICC (A)
- Yes
- ICC (B)
- Yes
- ICC (C)
- No
- ICC (A)
- Yes
- ICC (B)
- No
- ICC (C)
- No
- ICC (A)
- Yes
- ICC (B)
- No
- ICC (C)
- No
War, strikes, riots and terrorism are outside all three unless the war and strikes clauses are added.
Which clause suits your goods?
ICC (A): most imports
Manufactured goods, electronics, machinery, vehicles and anything fragile or easy to steal.
ICC (B): robust goods
Steel, timber and other heavy goods where theft and breakage are unlikely but water damage is a risk.
ICC (C): bulk and budget
Bulk commodities and goods where only a major casualty could cause a loss.
ICC (Air)
An all-risks clause for air freight, similar to ICC (A); used for flowers, pharmaceuticals and courier consignments.
Clauses you add on top
Institute War Clauses
War, capture and mines. Charged extra, and much more on routes through listed war zones such as the Red Sea.
Institute Strikes Clauses
Strikes, riots, civil commotion and terrorism.
Classification Clause
Sets which ships are acceptable at the normal rate; cargo on older or unclassed ships costs extra.
Extensions
Extra storage time, deferred unpacking, refrigeration breakdown and duty or increased value can be added.
When cover starts and ends
- Cover starts when the goods leave the warehouse named in the policy for the journey.
- It continues through normal transit, transhipment and storage on the way.
- It ends on delivery to your warehouse, or 60 days after unloading at the final port, whichever comes first.
- Long storage at the port or a CFS beyond that needs an extension.
- Under Kenyan cover the final warehouse can be your premises upcountry, not just Mombasa.
Your duties under the Marine Insurance Act
A marine policy is a contract of utmost good faith. You must disclose every material circumstance or the insurer may avoid the contract, and a warranty must be complied with exactly (Marine Insurance Act, ss.17, 18 and 33).
Everyone with an interest in a marine adventure has an insurable interest, and it only has to exist when the loss happens, not when the cover is bought (Marine Insurance Act, ss.5 and 6).
In practice: describe the goods, packing and value accurately, and keep to any warranty in the policy, such as packing or security conditions.
Frequently asked questions
Should I choose ICC A, B or C?
Choose ICC (A) for most goods, especially anything fragile, valuable or easy to steal: it covers all risks except the listed exclusions, including theft and handling damage. ICC (B) and (C) cover named events only and suit robust bulk goods where theft and breakage are unlikely. The price gap is often smaller than the gap in cover.
What do Institute Cargo Clauses A, B and C all exclude?
All three clauses exclude:
- Wilful misconduct by you
- Ordinary leakage, loss of weight or volume, and wear and tear
- Poor or insufficient packing
- Inherent vice: damage caused by the nature of the goods
- Delay, even if caused by an insured event
- Insolvency or financial default of the ship's owners or operators
- Nuclear risks
- Unseaworthiness you knew about when the goods were loaded
- War, strikes, riots and terrorism, unless the war and strikes clauses are added
ICC (B) and (C) also leave out anything that is not on their list of named events, such as theft and rough handling.
Is war and strikes cover included?
Usually not. War, strikes, riots and civil commotion are added with the Institute War and Strikes Clauses for an extra premium, which market estimates put at about 0.05% of the cargo value. Routes through listed war zones, such as the Red Sea since 2024, can cost much more.
What does warehouse to warehouse mean?
Cover starts when the goods leave the warehouse named in the policy and ends when they are delivered to your warehouse, or 60 days after they are unloaded at the final port, whichever comes first. It includes normal storage and transhipment on the way. Kenyan cover can run past Mombasa to your premises upcountry.
Does marine insurance cover theft and pilferage?
Under ICC (A), yes: theft, pilferage and non-delivery are covered unless excluded. ICC (B) and (C) do not cover theft. For phones, electronics and other high-theft goods, insurers may add security conditions or a higher excess.
Are used cars and second-hand machinery fully covered?
Often not. Insurers may limit used goods to total loss or named events, exclude rust, scratches and mechanical faults, or pay only scrap value under some overseas policies. Check the basis of cover before you buy.
Is there an excess on marine cargo claims?
Usually yes. Insurers set the excess in the quote, often as a fixed amount or a percentage of the claim, and it can be higher for theft, used goods or fragile items. No Kenyan insurer publishes standard excess figures, so compare them when you compare quotes.
How much is marine cargo insurance in Kenya?
Insurers do not publish rates, but market estimates put most import cargo at about 0.15% to 0.6% of the insured value, with minimum premiums of about KES 2,500 to 5,000 a shipment. On goods worth KES 2 million that is roughly KES 3,600 to 14,500 before levies. Fragile, high-theft or used goods cost more.
Not sure which clause you need?
Tell us what you ship and how. We recommend the right clause and compare its price across Kenyan insurers.
Licensed by IRA · No obligation · We reply within 1 hour
Sources
- Naveah Capital review of 33 Kenyan insurer websites, 18 October 2026
- The EastAfrican, 31 July 2025
- Marine Insurance Act (Cap 390), ss.17, 18, 33
- Marine Insurance Act (Cap 390), ss.5–6
- Eastleigh Voice, July 2026
Facts and published prices checked 18 Oct 2026; last reviewed October 2026 by Naveah Capital. Rates shown are market estimates before levies, not a quote or a promise. Naveah Capital Insurance Agency is an IRA-licensed insurance agency in Nairobi; this page is general information, and your policy wording decides your cover.
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