International Cargo Clauses & Inland Transit Clauses in Maritime Insurance

Marine insurance coverage is divided into two primary categories: the International Cargo Clause (ICC) and the Inland Transit Clause (ITC). With each, two different segments describe between National and International transits. These clauses play a vital role in defining the scope and nature of coverage offered by marine insurance, serving as essential guides for understanding the difficulty of insurance protection during various stages of transit.

Inland Transit Clause (ITC)

As the name suggests, the Inland Transit Clause offers insurance coverage exclusively for transits within India. Within this clause, there are two specific types of coverage, each addressing distinct aspects of the inland transit scenario.

  • Inland Transit Clause A: Inland Transit Clause A covers all damages, except rainwater damages.
  • Inland Transit Clause B: Inland Transit Clause B covers only accidental damages.

Whether ITC or ICC, the insured must hold an insurable interest in the property for coverage under any Marine/Cargo insurance clause.

International Cargo Clause (ICC)

As the name suggests, the International Cargo Clause covers only international cargo transits. Two coverage types exist under the International Cargo Clause (ICC).

Marine Insurance Online
  • International Cargo Clause A: International Cargo Clause A covers all damages, excluding rainwater damage.
  • International Cargo Clause A: International Cargo Clause B covers only accidental damages.

Perils Excluded in Marine Insurance

Here are perils not covered under the mentioned clauses under any circumstance:

  • Damage resulting from intentional misconduct
  • Damage from bad packaging
  • Loss or harm due to cargo arrival delay
  • Loss from operator’s financial default or insolvency

Let’s take an example to understand it:

Case Scenario
XYZ Export Pvt. Ltd. is an international goods exporter. The company’s CEO opted for a marine insurance plan for comprehensive coverage, selecting International Cargo Clause A, covering all perils.
Due to choosing International Cargo Clause-A with broad coverage, the CEO faces a substantial premium. Opting for International Cargo Clause-B would offer only accidental damage coverage, resulting in a lower premium compared to International Cargo Clause-A.


As a transporter, you can select these coverage types in the marine insurance policy. Opt for the Inland Transit Clause for domestic transport or the International Cargo Clause (Plan A or B) for international shipments based on your requirements.