ICC(A) for High-Value Goods: Why Watches and Jewellery Need the Broadest Cover
Your broker tells you the shipment is covered under "Institute Cargo Clauses." You nod and move on. But there are three levels of Institute Cargo Clauses, and the difference between them can mean the difference between a paid claim and a denied one. A S$40,000 Patek Philippe stolen from a courier depot is covered under ICC(A). Under ICC(C)? Not even close. ICC(C) doesn't cover theft at all.
This guide breaks down the three levels of Institute Cargo Clauses, explains why high-value goods like watches and jewellery specifically need ICC(A), and details what "all risks" actually excludes so you know exactly where you stand.
This guide covers:
- ICC(A) vs ICC(B) vs ICC(C): what each level covers and excludes
- Why theft, mysterious disappearance, and non-delivery matter for luxury goods
- The exclusions that apply even under ICC(A)
- War, strikes, and terrorism: what's excluded by default and how to buy it back
- How to confirm you have the right level of cover
Not sure which level of cargo cover you have?
The difference between ICC(A) and ICC(C) is the difference between a claim that pays and one that doesn't. MINT arranges ICC(A) marine cargo cover for watch and jewellery dealers.
The Three Levels of Institute Cargo Clauses
The Institute Cargo Clauses are standardised insurance wordings developed by the Institute of London Underwriters (now the International Underwriting Association). They come in three levels: A, B, and C. The letter determines what's covered and, more importantly, how coverage works.
| Feature | ICC(A) | ICC(B) | ICC(C) |
|---|---|---|---|
| Coverage approach | All risks minus stated exclusions | Named perils only | Named perils only (fewer than B) |
| Burden of proof | Insurer must prove an exclusion applies to deny a claim | Assured must prove loss was caused by a named peril | Assured must prove loss was caused by a named peril |
| Theft | Covered | Not covered | Not covered |
| Non-delivery | Covered | Not covered (unless total loss of package overboard) | Not covered |
| Water damage (entry of sea/lake/river water) | Covered | Covered | Not covered |
| Earthquake, volcanic eruption, lightning | Covered | Covered | Not covered |
| Washing overboard | Covered | Covered | Not covered (jettison only) |
| Fire, explosion, sinking, collision | Covered | Covered | Covered |
| Typical use case | High-value, theft-attractive goods | Medium-value manufactured goods | Low-value bulk commodities |
The structural difference is important. Under ICC(A), the starting position is "everything is covered" and the insurer must point to a specific exclusion to deny a claim. Under ICC(B) and ICC(C), the starting position is "nothing is covered" and the assured must prove the loss was caused by one of the listed perils. For luxury goods, this burden-of-proof difference is significant.
Why Theft and Non-Delivery Matter Most for Luxury Goods
For bulk commodities like grain or steel, the most common transit losses come from physical damage: water ingress, rough handling, contamination. Theft of an entire container of rice is relatively rare. The economics don't work for thieves.
For watches and jewellery, the calculus is completely different. A single small parcel can contain S$100,000 or more in easily portable, easily resellable goods. Theft and non-delivery are the dominant risks, not fire or sinking.
| Risk | Relevance to Watches & Jewellery | ICC(A) | ICC(B) | ICC(C) |
|---|---|---|---|---|
| Theft from courier hub | High: small, valuable, resellable | ✓ | ✗ | ✗ |
| Parcel "lost" in logistics chain | High: happens regularly with small parcels | ✓ | ✗ | ✗ |
| Pilferage (partial theft) | High: one watch removed from a multi-piece parcel | ✓ | ✗ | ✗ |
| Damage from rough handling | Moderate: watches are durable, jewellery less so | ✓ | Limited | ✗ |
| Fire or explosion during transit | Low probability, catastrophic if it happens | ✓ | ✓ | ✓ |
If you insure watches or jewellery under ICC(B) or ICC(C), you're covering the risks that are least likely to happen (fire, sinking) while leaving the risks that are most likely to happen (theft, loss, non-delivery) completely uninsured. That's backwards.
What ICC(A) Still Excludes
"All risks" is the broadest standard cover available, but it is not unlimited. ICC(A) contains specific exclusions that every dealer should know.
| Exclusion | What It Means in Practice |
|---|---|
| Wilful misconduct of the assured | Fraud or deliberate damage voids coverage |
| Ordinary wear and tear | Normal aging or surface wear during transit is not an insured event |
| Insufficient or unsuitable packing | If you or your staff packed the goods inadequately, damage claims can be denied |
| Inherent vice | Damage caused by the nature of the goods themselves (less relevant for watches, more for perishable or reactive materials) |
| Delay | Financial loss from late delivery is not covered, even if the delay was caused by an insured peril |
| Insolvency of carrier | If the courier or logistics company goes bust while holding your goods, that loss is excluded |
| Nuclear, radioactive, chemical, biological weapons | Standard market exclusion across all levels |
| Cyber attack | Loss caused by malicious use of computer systems is excluded under the Institute Cyber Attack Exclusion Clause |
These exclusions apply at all three levels. The difference is that ICC(A) covers everything that isn't excluded, while ICC(B) and ICC(C) only cover what's specifically listed. For a deeper walkthrough of each exclusion, see our guide on what happens when a watch gets lost in transit.
Concerned your cargo cover might be ICC(B) or ICC(C) instead of ICC(A)?
Check your policy schedule. If it doesn't say "Institute Cargo Clauses (A)," you may not have the theft and non-delivery cover your shipments need. MINT can help you assess and upgrade.
War, Strikes, and Terrorism
War and strikes are excluded by default under all three ICC levels. They're carved out into separate Institute clauses that can be added back at additional premium.
| Clause | What It Adds Back | Cancellation Notice |
|---|---|---|
| Institute War Clauses (Cargo) | Loss from war, civil war, revolution, rebellion, insurrection, capture, seizure, derelict weapons of war | 7 days' notice by either party |
| Institute Strikes Clauses (Cargo) | Loss from strikers, locked-out workers, labour disturbances, riots, civil commotions, terrorists, persons acting from political motive | 7 days' notice (48 hours for US shipments) |
Whether you need war and strikes cover depends on your shipping routes and risk tolerance. For shipments within Singapore and Malaysia, the immediate war risk is low. But strikes cover includes terrorism and civil commotion, which can be relevant in any geography. The Termination of Transit Clause (Terrorism) further limits cover for terrorism-related losses to goods in the ordinary course of transit, with the same warehouse-to-warehouse termination triggers.
The point: don't assume war and strikes are included. If your policy schedule doesn't reference Institute War Clauses and Institute Strikes Clauses, you don't have them.
The Warehouse-to-Warehouse Clause
All three ICC levels use the same warehouse-to-warehouse transit clause, but the time limits are important for any dealer to understand.
| Transit Type | Cover Attaches | Cover Terminates | Outer Limit |
|---|---|---|---|
| Sea | Goods leave origin warehouse | Delivery to destination warehouse | 60 days after discharge from overseas vessel |
| Air | Goods leave origin warehouse | Delivery to destination warehouse | 30 days after unloading from aircraft |
| Road (courier) | Goods leave origin warehouse | Delivery to destination warehouse | Per transit clause terms |
These outer limits are hard cutoffs. If goods sit at a port or airport for more than 60 days (sea) or 30 days (air) after discharge, the cargo cover expires even if they haven't reached the final destination. For high-value goods, this means monitoring delivery timelines is part of managing your transit insurance.
How to Confirm Your Cover Level
If you already have marine cargo insurance, or if your freight forwarder arranges cover on your behalf, check these items.
| Check | Where to Find It | What to Look For |
|---|---|---|
| Coverage level | Policy schedule or certificate | "Institute Cargo Clauses (A)" explicitly stated. Not just "All Risks" without the clause reference |
| War and strikes | Policy schedule or endorsements | Institute War Clauses (Cargo) and Institute Strikes Clauses (Cargo) listed as additional cover |
| Sum insured / per-conveyance limit | Policy schedule | Limit must exceed your maximum single shipment value |
| Whose interest is insured | Policy schedule | Your name and interest, not just the forwarder's |
If your freight forwarder says "don't worry, it's covered," ask for the certificate. Verify the clause level. Forwarder-arranged cover often defaults to ICC(C) or ICC(B) because it's cheaper, and may insure the forwarder's interest rather than yours. For more on why forwarder coverage is not the same as your own policy, see our guide on the transit gap.
FAQ
Is ICC(A) significantly more expensive than ICC(B) or ICC(C)?
ICC(A) costs more because it covers more risks. For high-value goods like watches and jewellery where theft is the primary risk, ICC(B) or ICC(C) would save on premium but leave the most likely loss scenarios uninsured. The additional cost of ICC(A) is small relative to the value at risk.
Can I have ICC(A) for some shipments and ICC(B) for others under the same open cover?
Technically possible, but unusual and not recommended for high-value goods. The open cover schedule typically specifies one ICC level that applies to all declarations. Mixing levels creates complexity and risk of confusion at claims time.
What does "deliberate damage by any person" mean under ICC(B) and ICC(C)?
ICC(B) and ICC(C) both exclude deliberate damage or destruction by any person. This is a separate exclusion from wilful misconduct of the assured. It means damage caused by a third party acting intentionally (vandalism, sabotage) is excluded under ICC(B) and ICC(C) but is covered under ICC(A).
Does ICC(A) cover a watch damaged because the courier dropped the parcel?
Yes, provided the packing was adequate. Accidental damage from rough handling during transit is an "all risks" event under ICC(A). If the watch was packed in a rigid box with proper cushioning and the crystal still cracked, that's a covered event. If it was shipped in a paper bag, the insufficient packing exclusion could apply.
My supplier ships goods to me under their own insurance. How do I know what level of cover they have?
Ask for the insurance certificate for each shipment. Look for the ICC level, the sum insured, and whether your interest as buyer is covered. If the supplier's policy only covers their interest, you may need your own inward cargo cover from the point where risk transfers to you under the trade terms.
What's the difference between "all risks" and ICC(A)?
ICC(A) is the formal, internationally standardised version of "all risks" cover for marine cargo. Some policies use the phrase "all risks" informally. Always confirm the actual clause wording references "Institute Cargo Clauses (A)" to be sure you're getting the full ICC(A) coverage and not a watered-down version.
Does the ICC level affect how claims are handled?
Yes. Under ICC(A), you report the loss and the insurer must identify an exclusion to deny the claim. Under ICC(B) and ICC(C), you must prove the loss was caused by one of the named perils. For mysterious losses where the exact cause is unknown (parcel simply disappears), this burden-of-proof difference is critical. Under ICC(A), a missing parcel is covered. Under ICC(B) or ICC(C), you may struggle to prove which named peril caused the loss.
MINT Conclusion
For watches and jewellery, the choice between ICC levels isn't really a choice at all. Theft, non-delivery, and pilferage are the dominant transit risks for high-value, portable goods. Only ICC(A) covers them. Choosing ICC(B) or ICC(C) to save on premium means insuring against the risks that are least likely (fire, sinking) while leaving the risks that are most likely (theft, loss) completely exposed.
If you ship watches, jewellery, or precious stones, confirm your cover is ICC(A). If it isn't, or if you're relying on a freight forwarder's default cover, it's worth a conversation.
MINT provides specialist insurance for Singapore's luxury watch ecosystem, from Jeweller's Block coverage that protects dealer inventory to collector policies designed for how watches are actually owned and moved.
Speak with a specialist (SG) · Speak with a specialist (MY)
Disclaimer: This article provides general guidance on insurance coverage available in the Singapore and Malaysian markets as of March 2026. Policy terms, conditions, and availability vary by insurer. Always review your specific policy wording or consult a licensed broker before making coverage decisions.
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