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This policy covers cargo whilst in transit and including storage in the ordinary course of transit. They are subject to the terms of the Institute Cargo Clauses. The most commonly used clauses are:
Institute Cargo Clauses (A) or Institute Cargo Clauses (Air)
Covers all risks of loss of or damage to the cargo.
Institute Cargo Clauses (B)
Covers loss of or damage caused by the following perils:
- Fire or explosion
- Vessel or craft being stranded, grounded, sunk or capsized
- Overturning or derailment of land conveyance
- Collision or contact of the vessel, craft or conveyance with any external object other than water
- Discharge of cargo at a port of distress
- Earthquake, volcanic eruption and lightning
- General average sacrifice
- Jettison or washing overboard
- The entry of sea, lake or river water into the vessel craft conveyance container or place of storage
- Total loss of any package overboard or dropped whilst loading on to, or unloading from vessel or craft
Institute Cargo Clauses (C)
Covers the following named perils:
- Fire or explosion
- Vessel or craft being stranded, grounded, sunk or capsized
- Overturning or derailment of land conveyance
- Collision or contact of vessel craft or conveyance with any external object other than water
- Discharge of cargo at a port of distress
- General average sacrifice
- Jettison
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