Marine Insurance for Spice Exports: What It Actually Covers

Marine cargo insurance is typically written against one of the Institute Cargo Clauses (ICC), which set out what's covered at three tiers:

• ICC (A) — the broadest cover, commonly described as "all risks," subject to standard exclusions (such as inherent vice, inadequate packing, or wilful misconduct).
• ICC (B) — a mid-tier, named-perils cover: a defined list of events (fire, explosion, vessel sinking or capsizing, collision, and similar) rather than all risks.
• ICC (C) — the narrowest named-perils cover, limited to major casualty events — it excludes many risks that (B) includes, such as certain water damage and washing overboard.

As referenced in our Incoterms guide, CIF requires the seller to arrange only a minimum level of cover under Incoterms rules — in practice this is commonly ICC (C), the narrowest tier. If your cargo or route carries meaningful risk, ask specifically which clause is being used rather than accepting "insured" as sufficient information.

Standard market practice is to insure cargo at around 110% of the CIF invoice value, not the invoice value alone — the additional 10% is intended to cover anticipated profit margin that would otherwise be lost if the shipment is damaged or lost. If a policy is written at exactly 100% of invoice value, that's worth flagging rather than assuming it's simply thorough.

• Inherent vice — quality degradation intrinsic to the product itself (natural moisture loss, gradual spoilage) rather than an insured event during transit.
• Inadequate or improper packing — if packaging wasn't suited to the mode of transport or route conditions, resulting damage may be excluded regardless of clause level.
• Delay — financial loss purely from a shipment arriving late, as opposed to physical loss or damage, is generally excluded even under ICC (A).
• War and strikes — these typically require separate additional clauses (Institute War Clauses, Institute Strikes Clauses) rather than being included in the standard ICC tiers.

Notify the insurer as soon as damage or loss is discovered — most policies specify a notification window, and delay can affect the claim. Don't sign a clean delivery receipt if damage is visible on arrival; note it on the document itself. Keep the packing list, bill of lading, and photographic evidence of the damaged cargo, and request a surveyor's report before disposing of or reworking any damaged stock.

• Which Institute Cargo Clause — A, B or C — is the policy written under?
• What percentage of invoice value is the cargo insured for?
• Are war and strikes risks included, or would they need a separate clause?
• Who is named as the insured party, and does that match who actually bears the risk of loss under the agreed Incoterm?