Marine Cargo Insurance Protocols: All-Risk ICC (A) Clause Breakdown, Valuation Models & Claim Settlement SOPs

Direct Answer Capsule: Marine cargo insurance protects goods against physical loss or damage during international transit. The standard coverages are defined by the Institute Cargo Clauses (ICC): ICC (A) = "all risks" (broadest, covers fortuitous loss/damage), ICC (B) = named perils (includes sinking, collision, fire, earthquake), and ICC (C) = limited named perils (major casualties only). The insured value is typically CIF + 10% (cost, insurance, freight plus 10% for anticipated profit). Claims require the original policy, bill of lading, commercial invoice, packing list, and a surveyor's damage report filed within the policy time limit.

1. Institute Cargo Clauses Coverage Comparison

2. Insured Value Calculation (CIF + 10%)

Insured Value = CIF Value × 1.10 (10% uplift for profit)

Example:
  FOB value (goods)     = $10,000
  Ocean freight         = $1,500
  Insurance premium     = $50
  → CIF value       = $11,550
  → Insured value   = $11,550 × 1.10 = $12,705

Premium (ICC A, ~0.2%–0.5%):
  $12,705 × 0.30% = $38.12

The 10% uplift covers anticipated profit and incidental costs; it is the international trade standard under Incoterms CIF / CIP.

3. Claim Settlement SOP

1. Notify immediately — report damage to the insurer and the carrier within 3 days of delivery.
2. Preserve evidence — do not discard damaged goods; take photos and videos.
3. Surveyor inspection — the insurer appoints a surveyor to assess the damage.
4. Submit documents — original policy, B/L, invoice, packing list, survey report, carrier claim letter.
5. Claim decision — the insurer pays the claim (or denies) within 30–90 days of complete documentation.

4. Common Exclusions

• Inherent vice (e.g., perishable goods spoiling without an external cause).
• Insufficient packing by the shipper.
• Delay in transit (covered only by a separate delay policy).
• War, strikes, riots (require ICC War / Strikes clauses).

Baton Logistics arranges ICC (A) all-risk marine cargo insurance on your behalf. Add cargo insurance to your next shipment for ~0.2%–0.5% of insured value.