Category: Marine · Reviewed by Mark Fox, Broker · Renewals · Last reviewed 2026-06-05
The Institute Cargo Clauses (B), reference CL.383 dated 1/1/2009, are the intermediate named-perils marine cargo insurance wording in the London market, providing cover for loss of or damage to insured goods caused by a specified list of perils including fire, explosion, stranding, collision, earthquake and washing overboard.
Category: Marine insurance Also known as: ICC (B), ICC B, CL.383, intermediate ICC First codified: Institute Cargo Clauses (Sea) WA 1963; ICC (B) 1/1/82; current ICC (B) 1/1/2009 (CL.383) Related legislation: Marine Insurance Act 1906 [1]; Insurance Act 2015 [2]
The Institute Cargo Clauses (B) are the intermediate of the three principal marine cargo wordings maintained by the Joint Cargo Committee. They provide named-perils cover, responding only to loss of or damage to the insured goods reasonably attributable to a specified list of perils set out in cl.1. The current version, dated 1/1/2009 and assigned market reference CL.383, replaced the earlier ICC (B) 1/1/82 [3][4].
The structure of ICC (B) mirrors ICC (A) and ICC (C), with 19 numbered clauses covering risks, exclusions, duration, claims, benefit of insurance, minimising losses, and avoidance of delay and law and practice. The critical differences from ICC (A) lie in cl.1 (risks covered) and cl.4 (general exclusions, which in ICC (B) and (C) also exclude deliberate damage by wrongful act of any person) [3].
ICC (B) cover historically traces to the ‘With Average’ (WA) wordings of the 19th and early 20th centuries, which superseded the original ‘Free of Particular Average’ (FPA) cover. The 1982 revision rationalised the named perils into a structured list, and the 2009 revision made limited improvements without changing the basic cover. ICC (B) sits between the broad all risks cover of ICC (A) and the narrowest cover of ICC (C), offering a middle ground for cargoes where named perils cover is appropriate but the lowest-tier cover would be too restrictive [3][4].
ICC (B) is typically used for bulk commodities such as grain, oilseeds, fertilisers and ores, where the principal exposures are well understood and align with the listed perils, and where buyers and sellers in the trade have historically negotiated based on named-perils cover. It is also used for some low-value finished goods and trades with a long tradition of named-perils cover.
ICC (B) is governed by the Marine Insurance Act 1906 and, for commercial contracts entered into after 12 August 2016, modified by the Insurance Act 2015. Clause 19 provides that the insurance is subject to English law and practice [1][2][3].
Section 55 of the MIA 1906 is the foundational provision: the insurer is liable for any loss proximately caused by a peril insured against. Under named-perils cover such as ICC (B), the assured bears the burden of proving that the loss was reasonably attributable to (cl.1.1) or caused by (cl.1.2 and cl.1.3) one of the listed perils. This contrasts with the all risks cover under ICC (A), where the assured only needs to prove that the loss occurred during the cover period from an external cause [1][3].
Clause 1 of ICC (B) lists the covered perils in three groups. Clause 1.1 covers loss or damage reasonably attributable to: fire or explosion; the vessel or craft being stranded, grounded, sunk or capsized; overturning or derailment of land conveyance; collision or contact of vessel, craft or conveyance with any external object other than water; discharge of cargo at a port of distress; earthquake, volcanic eruption or lightning. Clause 1.2 covers loss or damage caused by: general average sacrifice; jettison; or washing overboard. Clause 1.3 covers loss or damage caused by entry of seawater, lake water or river water into vessel, craft, hold, conveyance, container or place of storage [3].
Clause 1.4 covers total loss of any package lost overboard or dropped whilst loading on to, or unloading from, vessel or craft. The cover also includes contribution to general average and salvage charges (cl.2) and the ‘both to blame collision’ clause (cl.3).
The exclusions in cl.4–7 broadly mirror ICC (A), with one important addition in cl.4.7: ICC (B) excludes ‘deliberate damage to or deliberate destruction of the subject-matter insured or any part thereof by the wrongful act of any person or persons’. This is sometimes called the ‘malicious damage’ exclusion and is the principal substantive cover gap between ICC (B) and ICC (A). Malicious damage cover can be reinstated by separate endorsement (the Institute Malicious Damage Clause CL.266) [3][4].
ICC (B) is incorporated into a policy by reference and used with the MAR 91 schedule. Annual open covers using ICC (B) are common for bulk commodities. The placement process mirrors that for ICC (A): a slip is prepared by the broker, presented to a lead underwriter who sets terms, and following markets subscribe on the agreed wording [3][4].
For commodities where ICC (B) is the trade norm, the cover responds well to the principal exposures: fire and explosion (significant for grain elevators and oilseed cargoes), stranding and grounding (significant for bulk vessels in shallow waters), collision and contact (covering events such as quay impacts during berthing), seawater ingress (covering hold damage from heavy weather) and overboard packages (covering containers lost in heavy weather). Less obvious exposures - notably pilferage, malicious damage and unexplained shortage at destination - are not covered under ICC (B).
The burden of proof matters in practice. A cargo claimant under ICC (B) must show what happened, with evidence that the loss fell within a listed peril. For example, a grain cargo arriving with wet damage requires evidence (typically from a surveyor’s report and the ship’s logs) that seawater entered the hold; if the wet damage is from condensation or sweat, it is not covered under ICC (B). Under ICC (A), the burden is reversed and the wet damage would be covered unless the insurer could show it was inherent vice [3].
Malicious damage and pilferage cover is commonly added back to ICC (B) covers where the trade requires it. The Institute Malicious Damage Clause CL.266 deletes the relevant exclusion in cl.4.7 and restores cover.
ICC (B) is used in a number of specialist trades with associated commodity clauses. The Federation of Oils Seeds and Fats Associations (FOSFA) clauses incorporate ICC (B) for bulk oilseeds and edible oils, with specific provisions for taint, contamination and shortage. The Grain and Feed Trade Association (GAFTA) similarly references ICC (B) for grain. The Coffee Trade Federation has its own clauses. Bulk metals and minerals are often covered on ICC (B) with specific clauses for sweat damage and inherent vice [3][4].
The 1/1/82 version of ICC (B) remains in occasional use in some markets and trades. Some commodity contracts continue to reference the 1982 wording specifically.
Cover for war and strikes risks under ICC (B) operates the same way as under ICC (A): the war and strikes exclusions in cl.6 and cl.7 are excluded, and Institute War Clauses Cargo and Institute Strikes Clauses Cargo are placed separately to restore cover.
A commodities trader buys 30,000 tonnes of wheat FOB Black Sea port for shipment to North Africa under a sale based on Grain and Feed Trade Association terms incorporating ICC (B) (CL.383) plus War and Strikes clauses. The insured value is approximately $9m. During the loaded passage the vessel encounters heavy weather and water enters No. 3 hold through a damaged ventilator. On discharge, surveyors confirm seawater damage to approximately 1,800 tonnes of wheat in the lower part of the hold. The damaged grain is sold for animal feed at a discount of $230 per tonne against the sound market value. The trader claims under the policy, providing the ship’s logs, surveyor’s reports and sales accounts. The loss falls within cl.1.3 of ICC (B) (entry of seawater into vessel or hold), so the insurer pays the indemnified loss of approximately $415,000. The trader’s grain insurance under ICC (B) responded as expected for this classic named-perils exposure.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-05. Next review: 2026-12-05.
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