Cargo and transit · India
Two different clause sets govern Indian cargo and they are constantly confused, including by pages that ought to know better. Inland Transit Clauses cover a truck or wagon inside India. Institute Cargo Clauses cover the sea or air leg of an export. Quoting one at the other describes a contract that does not apply to your goods.
Inland Transit (Rail or Road) Clauses
| Clause | What it is |
|---|---|
| ITC-A | All risks, subject to exclusions. Theft, pilferage, non-delivery and accidental breakage come in here and nowhere below. |
| ITC-B | Named perils only. The seven listed below. |
| ITC-C | The narrowest. Fire and a short list of major accidents. |
Institute Cargo Clauses
| Clause | What it is |
|---|---|
| ICC (A) | All risks, subject to exclusions. The widest cover in the set. |
| ICC (B) | Named perils, wider than (C). Includes water damage, washing overboard and entry of sea, lake or river water. |
| ICC (C) | Major casualties only: fire, explosion, stranding, sinking, collision, general average sacrifice and jettison. No water damage, no theft. |
The seven named perils, as they appear in an insurer's filed product wording. Anything outside this list needs ITC-A or a specific extension.
| Peril | What it means on the road |
|---|---|
| Fire or explosion | The most common total loss on a truck, and it takes the whole load rather than part of it. |
| Lightning | Rare, and listed because it is a named peril: if it is not named, it is not covered. |
| Breakage of bridges | A monsoon peril in practice. The bridge fails, the consignment goes with it. |
| Earthquake and volcanic eruption | Present in the wording whether or not it feels relevant to a Rajasthan road movement. |
| Collision with or by the carrying vehicle or wagon | Your fault or theirs, the cover responds either way. |
| Overturning of the carrying vehicle or wagon | The palti. On stone and tiles this is the peril that actually pays. |
| Derailment or accidents of like nature to the wagon or vehicle | The rail equivalent, and the catch-all for accidents of that character. |
Wilful misconduct, ordinary leakage and wear, insufficient packing carried out by you or your staff, and loss caused by delay even where the delay itself came from an insured peril.
The packing exclusion is the one that bites. On marble, tiles and glass the insurer will ask how the load was secured, and if the answer is that the transporter did it the way he always does, the claim gets difficult. Agreeing a packing and lashing standard in writing before the season is cheaper than arguing it after a loss.
The honest test is what your realistic loss looks like. If the thing that keeps you awake is a truck overturning or a bridge going down, ITC-B answers it. If it is a slab arriving chipped, a drum going missing, or a consignment quietly not delivered, only ITC-A answers it, and the premium gap is usually smaller than the gap in cover.
ITC-C exists and is rarely the right answer. If someone has quoted it to you, ask what they think it excludes.
The clause answer changes with what you are moving, because the realistic loss changes. These go into the detail for the four we handle most.
They apply to different journeys. Inland Transit (Rail or Road) Clauses govern movements within India by road or rail. Institute Cargo Clauses govern the marine and air legs of an export or import. A domestic truck movement from Kishangarh to Delhi is an ITC risk, not an ICC one, and pages that quote ICC for it are describing the wrong contract.
Seven named perils: fire or explosion, lightning, breakage of bridges, earthquake and volcanic eruption, collision, overturning, and derailment or accidents of like nature. It is a named-peril cover, so the burden is on you to show the loss was reasonably attributable to one of them.
No. Theft, pilferage, non-delivery and ordinary handling breakage are not in the seven. For those you need ITC-A, or ITC-B with the relevant extensions added. This is the single most common surprise at claim time on stone and tile movements.
For fragile, high-value or easily stolen goods, ITC-A is usually the honest answer and the premium difference is smaller than people expect. ITC-B is defensible for robust cargo where the realistic loss is an accident rather than a theft. ITC-C is rarely the right answer for anyone.
Insufficient or unsuitable packing is excluded when it was done by you or your staff. That exclusion decides a large share of stone and glass claims, and it is why the packing standard is worth agreeing with the transporter in writing before the season starts.
Loss caused by delay is excluded even when the delay itself was caused by an insured peril. A bridge collapse that strands your consignment is covered for the physical damage, not for the market having moved by the time it arrives.
It depends on the clause attachment and the Incoterm. Under FOB and CFR the risk passes to the buyer once the goods are on board, which leaves the seller carrying the inland leg to the port, frequently uninsured. Getting that boundary right is half of what we do for exporters.
Because a common carrier's liability is capped, and recovering it takes time you will not have. You must also serve written notice within 180 days of the booking date under section 16 of the Carriage by Road Act, 2007, and a claim bill does not count as that notice. Insurance pays; recovery from the carrier is the insurer's problem afterwards.