For each of the following scenarios, determine whether the loss or damage is covered
under:
• ICC (A) / ICC (B) / ICC (C) / Not covered
• Explain your answer briefly based on the Institute Cargo Clauses (2009).
Statements
1. Cargo is damaged due to a fire onboard the vessel.
2. Goods are washed overboard during a heavy storm.
3. Cargo is stolen during transit.
4. Goods are damaged due to improper packaging by the shipper.
5. Cargo is damaged due to seawater entering the vessel.
6. Goods are lost due to piracy attack.
7. Cargo is damaged due to delay in delivery.
8. Goods are destroyed due to an explosion on board.
9. Cargo is damaged due to inherent vice (natural property of the goods).
10. Goods fall overboard during loading operations.
11. Cargo is damaged due to the carrier’s carelessness in checking and monitoring
temperature for frozen cargo
12. Goods are partially damaged due to heavy rain during transit.
13. Cargo is lost due to vessel sinking.
14. Goods are damaged due to insufficient stowage by the carrier.
15. Cargo is contaminated due to leakage from other goods.
16. Goods are damaged due to war risks.
17. Cargo is damaged due to strikes and riots.
18. Goods are damaged due to collision between vessels.
19. Cargo is damaged due to temperature variation during transit.
20. Goods are lost due to general average sacrifice.
21. Bags torn due to collision with underwater rock
Case 1:
Fruit transported by sea becomes damp and deteriorates due to the carrier’s negligence in
monitoring and controlling the temperature. Under which insurance clause(s) would this loss
be covered/ indemnified?
Case 2
A shipment transported by sea is insured under ICC (C) - 2009 with a sum insured for whole
value. Upon arrival at the destination port, due to the unavailability of cargo handling cranes,
the vessel has to remain anchored offshore for an extended period. During this waiting time, a
fire breaks out on board, and the cargo suffers a total loss (100%).
Will the insurer compensate this loss? Explain your answer.
Case 3
Company A exports a shipment of flour under CIF terms (Incoterms 2020) (bagged cargo
stored in the ship’s hold) to Company B in Thailand. The insurance condition is ICC (A) -
2009.
At the port of destination, the survey report indicates:
Loss 1: Short delivery of 200 bags
Loss 2: Contamination of 300 bags, resulting in a 40% reduction in commercial value
Loss 3: 200 bags become lumpy due to the inherent nature of the goods, resulting in a 15%
reduction in commercial value
Which losses are recoverable from the insurer? Explain your answer.
Case 4:
Company Beta in Vietnam exported goods to Company MYZ in China with the
following details:
Unit price: USD 300/MT CFR Ningbo Port, Incoterms 2020; Quantity: 10,000 MTs
Insurance condition: ICC (A) 2009; Insurance rate: 0.2%; Insured amount: 110% of
CFR value
At the port of destination, the survey report stated:
- Shortage delivery of 50 MTs
- 300 MTs were damaged by the entry of sea water in the typhoon, reducing their
commercial value by 60%
a. Who purchased the insurance?
b. Please calculate the insurance premium.
c. Please calculate the compensation amount claimable from the insurer.