Cargo insurance
with particular average · and under ICC (B) / ICC (C)
Cargo insurance with particular average covers loss of and damage to the goods only from the perils listed in the insurer's rules — casualty, fire, collision, natural disasters. Particular average is a loss borne by the owner of the specific cargo, unlike general average, which is shared between the ship and all cargo on the voyage.
Russian terms and the ICC clauses are similar but not identical: "with particular average" is closer to ICC (B), "free of damage except in case of casualty" to ICC (C). The actual scope is set by the wording of the specific policy, and we go through it before the premium is paid. ATF acts as an intermediary; the policy is issued by an insurance company.
Specification
Specification · Cover with particular average. Standard terms · the scope of cover is set by the specific insurer's policy wording
Service
- Terms
- Russian terms and ICC (B) / ICC (C)
- Cargo
- robust and low-value, bulk, timber, steel
- Options
- theft and non-delivery by separate clause
Terms
- Duration
- warehouse to warehouse
- Sum insured
- usually CIF + 10%
- Currency
- USD / RUB
Logistics
- Before shipment
- choice of terms, policy
- In transit
- monitoring incidents and general average
- In a loss
- proof of cause, survey
Price
- Base
- premium — % of the sum insured, below ICC (A)
- Extras
- war risks, survey — on request
Service flow
- 01
Cargo and route review
We assess what actually threatens the cargo on the route: for steel and timber — major casualties, for bagged cargo — water, for machinery — handling. That decides whether named perils are enough.
same day - 02
Choosing the terms
We compare the options: with particular average, free of damage except casualty, ICC (B) or (C). We show the premium difference and what remains uncovered.
1–2 working days - 03
Policy
We get the policy issued by the insurance company before shipment and check cargo description, package count and route against the invoice and transport document.
before shipment - 04
Evidence of loss
Under named perils the assured must prove that a listed peril caused the loss. So after an incident we immediately gather evidence: survey report, the master's sea protest or the carrier's incident report, the general average notice.
right after the incident
Problems
The cargo was insured on ICC (C) and the container arrived with wet goods — water entry is not covered by (C), and the claim is declined.
Before choosing the terms we review the real risks of the route: if the cargo is sensitive to water — at least ICC (B), to theft or breakage — ICC (A).
The contract says "with particular average" but the policy was issued on ICC (C) — the cover is narrower than the buyer expected.
We check the policy wording against the contract requirement and the insurer's rules before the premium is paid and explain which events are covered and which are not.
After an incident no evidence of the cause was collected: without a survey report and carrier documents the insurer does not accept that a named peril caused the damage.
At the first report of an incident we request the carrier's report or sea protest and call a surveyor approved by the insurer.
Documents
The documents for a named-perils policy are the same as for all risks. We also record the chosen terms: the wording in the application must match the insurer's rules or the ICC clauses.
Incoterms
- CIF
- the seller must insure at least ICC (C) for 110% of the price
- CFR
- the seller pays freight; transit risk and insurance are on the buyer
- FOB / FCA
- the buyer insures and chooses the terms
Documents
- Invoice
- commercial invoice — the basis of the sum insured
- Packing List
- packages, weights, packing or bulk carriage
- Transport document
- B/L, SMGS or CMR — route, vessel or wagon
- Contract
- delivery term and insurance requirements
- Insurance application
- chosen terms, cargo, route, sum insured
FAQ
The insurer pays for total loss and partial damage to the cargo, but only if caused by one of the events listed in its rules: casualty, fire, collision, natural disaster and the like. Theft, handling breakage and shortage are not covered. In scope it is closest to ICC (B).
Particular average is a loss borne by the owner of the specific damaged cargo or ship. General average is sacrifices and expenses made to save ship and cargo from a common peril; under the York-Antwerp Rules it is shared between the ship and all cargo on the voyage in proportion to value. GA contributions are covered by all ICC variants.
ICC (C) is the narrowest set: fire and explosion, stranding and grounding, overturning or derailment, collision, discharge at a port of distress, general average sacrifice and jettison. ICC (B) adds earthquake and lightning, washing overboard, entry of sea, lake or river water, and total loss of a package dropped during loading or discharge.
No: neither ICC (B), ICC (C) nor the Russian particular average terms cover theft and non-delivery. They can be added by a separate clause if the insurer agrees, or you can insure on all risks (ICC A) from the start. For LCL shipments and consumer goods the latter is usually more sensible.
Shippers whose cargo is little affected by ordinary transit mishaps: steel, timber, building materials, bulk, large used machinery. For them the main risk is casualty, fire or general average, and paying for all risks makes little sense. Basic cover does not suit electronics, fragile or high-value cargo.
Often not. Under Incoterms 2020 CIF only obliges the seller to insure on ICC (C) or similar terms for 110% of the price, usually with a local insurer. If the cargo is sensitive to water, theft or breakage, the buyer should require ICC (A) in the contract or insure it separately.