Category: Marine · Reviewed by Matt Bartlett, Director · Founder · Last reviewed 2026-06-05
The Institute Strikes Clauses Cargo, reference CL.386 dated 1/1/2009, restore cover for strikes, riots, civil commotions and terrorism risks excluded from the standard Institute Cargo Clauses, extending throughout the duration of transit and not subject to the waterborne agreement.
Category: Marine insurance Also known as: ISCC, SRCC clauses, strikes clauses cargo, CL.386 First codified: Strikes, Riots and Civil Commotions (SRCC) clauses early 20th century; current ISCC (Cargo) 1/1/2009 (CL.386) Related legislation: Marine Insurance Act 1906 [1]; Insurance Act 2015 [2]
The Institute Strikes Clauses Cargo are a separate London market wording that restore cover for the strikes risks excluded by cl.7 of the standard Institute Cargo Clauses. They are conventionally placed alongside the standard ICC and the Institute War Clauses Cargo to provide a complete suite of cover for international cargo transits [3][4].
The current ISCC (Cargo) 1/1/2009 (CL.386) cover loss or damage to the subject-matter insured caused by: strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions (cl.1.1); any act of terrorism, being an act of any person acting on behalf of, or in connection with, any organisation which carries out activities directed towards the overthrowing or influencing, by force or violence, of any government whether or not legally constituted (cl.1.2); and any person acting from a political, ideological or religious motive (cl.1.3). The cover also includes contribution to general average and salvage charges (cl.2) [3].
The terrorism definition in cl.1.2 of the 1/1/2009 wording was tightened compared with the 1/1/82 version, in response to market discussion following 11 September 2001. The reference to organisations ‘whose activities are directed towards the overthrowing or influencing’ of governments seeks to bring within cover both state-organised terrorism and organised non-state actors operating in pursuit of political objectives.
Unlike Institute War Clauses Cargo, the strikes clauses are not subject to the Waterborne Agreement and cover applies throughout the duration of transit defined by cl.5 (mirroring the transit clause in the underlying ICC), including land transit at origin and destination. This reflects the historical pattern that strikes and civil disturbances typically affect goods in ports, warehouses and land transit, not just on board overseas vessels [3].
The ISCC are governed by the Marine Insurance Act 1906 and, for commercial contracts entered into after 12 August 2016, modified by the Insurance Act 2015. Clause 14 provides that the insurance is subject to English law and practice [1][2][3].
The exclusions in cl.3 of the ISCC mirror those of the underlying ICC and the IWCC, with notable items including: wilful misconduct (cl.3.1.1); ordinary wear and tear (cl.3.1.2); insufficient packing (cl.3.1.3); inherent vice (cl.3.1.4); delay (cl.3.1.5); insolvency of carrier (cl.3.1.6); nuclear weapons (cl.3.1.10); and absence, shortage or withholding of labour (cl.3.7, which expressly carves out the consequences of strikes from cover - the cover responds to physical loss from strikers’ acts, not the economic consequences of a strike). Chemical, biological, biochemical and electromagnetic weapons are excluded (cl.3.1.11), and a cyber exclusion (CL370/LMA5403) is commonly attached [3][4].
The exclusion of war risks in cl.3.7 makes clear that the ISCC do not cover war, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, or any hostile act by or against a belligerent power. Cover for those risks is provided separately under the IWCC. The two wordings together cover the spectrum of political and labour-related risks excluded from the standard ICC.
The duration clause (cl.5) follows the ICC transit clause, beginning when the goods are first moved within the warehouse at the place named for commencement of transit and ending on completion of unloading at the final warehouse at destination, on the expiry of 60 days after discharge from the overseas vessel, or on delivery to other storage outside the ordinary course of transit, whichever occurs first. This extended cover throughout the transit is a key distinction from the waterborne-only IWCC cover.
The ISCC are placed alongside the standard ICC and the IWCC, typically with the same panel of insurers and at the same time as the main cover. The strikes premium is usually a small additional percentage of the cargo premium, varying with the routes and the political risk profile of origin and destination countries. For annual open covers, the strikes cover is incorporated into the standard programme. For high-risk routes or particular shipments, strikes premium may be loaded or specific terms applied [3][4].
In practice, the cover responds well to a range of common scenarios. Cargoes physically damaged during port strikes, warehouses looted during civil commotions, containers vandalised by protestors, and goods damaged by terrorist incidents in transit are all examples of losses falling within the ISCC. The cover is particularly important for goods transiting countries with elevated political risk or for shipments to destinations with active labour disputes.
A key practical point is that the cover responds to physical loss caused by the listed perils, not to economic consequences. Goods held up by a port strike with no physical damage are not covered for the resulting delay or storage costs (the delay exclusion in cl.3.1.5 reinforces this). Specialist strike delay or refusal of import (RFI) cover is available separately for some trades, particularly perishable goods susceptible to delay-related deterioration.
Terrorism cover under cl.1.2 has been an area of detailed market focus since 2001. The market position is that the ISCC cover terrorism affecting goods in transit (as physical loss), but standalone terrorism cover for fixed assets is provided by the separate terrorism insurance market through Pool Re and commercial terrorism insurers. The Cargo terrorism cover under ISCC is more limited than full standalone terrorism cover.
The Institute Strikes Clauses Air Cargo (CL.389) provide parallel cover for air shipments. The Institute Strikes Clauses for Bulk Oil (CL.276) and other commodity-specific wordings address particular trade requirements. The Institute Frozen Food Clauses (Excluding Frozen Meat) and the Institute Frozen Meat Clauses include strikes cover provisions tailored to refrigerated cargo [3][4].
Refusal of Import (RFI) clauses are sometimes added to cover loss where import authorities at destination refuse entry of the goods on political grounds. These differ from standard strikes cover by covering the economic consequence of refusal rather than physical loss from strikers’ actions. RFI cover is specialist and not part of the standard ISCC.
The 1/1/82 version of ISCC remains in some use, though the 1/1/2009 version with its updated terrorism definition is now the market standard. The cyber exclusion is routinely attached, with carve-outs for affirmative cyber cover under the LMA5403 wording in policies that intend to cover specified cyber events.
For shipments to specific high-risk regions, strikes cover may be restricted, excluded for particular causes, or subject to cancellation provisions allowing the insurer to terminate cover on short notice. The Joint War Committee Hull Areas List is not directly applicable to strikes cover but serves as a useful reference for elevated risk regions.
A UK importer brings finished textile goods worth £680,000 from a manufacturer in South Asia, on CIF terms. The importer’s annual open cover provides ICC (A) (CL.382), IWCC (CL.385) and ISCC (CL.386). On arrival at a European port for final road transit to the UK, a major industrial dispute breaks out at the discharge terminal. During the dispute, protestors enter the container yard and set fire to several stacked containers, including the importer’s container, destroying its contents. The importer claims under the policy. The loss falls within cl.1.1 of the ISCC (acts of strikers and persons taking part in labour disturbances) and the cover responds to the physical damage caused by the fire. The insurer pays an indemnified loss of approximately £750,000 (CIF value plus 10% notional profit minus salvage value), and pursues subrogated recovery against the terminal operator under its contractual obligations. The strikes cover responded to physical damage from industrial disturbance, complementing the war and standard cargo cover.
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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