Institute Cargo Clauses
What are they?
The backbone of marine insurance policies in many countries, the Institute Clauses define the level of coverage given by the insurance.
Things to think about:
- The Institute Clauses are published by Witherbys London and are drafted by the Lloyd’s Market Association (LMA) and International Underwriting Association of London (IUA).
- Many international insurance markets have adopted the Institute Clauses as the basis for their marine insurance covers.
- Standardisation of insuring conditions facilitates international trade, especially where banks are funding an import or export and they wish to see evidence of marine insurance.
- There are many exposures not contemplated by the Institute Clauses, hence marine insurers’ covers also include a suite of additional clauses that enhance or vary the cover.
Example
Different Institute Clauses exist which can significantly vary cover.
For example, if an insurer wishes to only give a limited events cover (as opposed to all risks/accidental damage) they would incorporate the Institute Cargo Clauses B or C into their cover.
Commodities such as frozen food, meat, coal, and traded commodities all have their own specific Institute Clauses.
There are over 100 different Institute Clauses used by marine insurers.
Different clauses will apply to different modes of transport, insured risks, and types of commodities.
Proteus’ annual marine cargo insurance includes 44 additional clauses enhancing the cover provided by the Institute Clauses.
Institute Clauses also exist for the insurance of commercial hull and pleasurecraft.
Trust the Marine Specialists
Proteus Marine Insurance risk appetite specialises in:
- Single and Annual Cargo
- Carriers Cargo & Carriers Cargo Liability
- Commercial Hull
- Marine General Liability