Following types of cover are available: For Import and Export Transits: Following types of cover are available:

• Institute Cargo Clause – A (All Risk)
• Institute Cargo Clause – B (Named Perils/ Basic Cover)

For Inland (Transit within India):

• Inland Transit Clause – A (All Risk)
• Inland Transit Clause – B (Named Perils/ Basic Cover)

Risk	All Risk	Basic
Fire, Lightening or Explosion	Yes	Yes
Overturning or derailment of vehicle	Yes	Yes
Earthquake or Volcanic Eruption during transit	Yes	Yes
Collision between 2 Vehicles	Yes	Yes
River or lake water entering cargo	Yes	Yes
Damage/Loss to goods during loading & unloading	Yes	No
Damage/Loss to goods during handling of goods in transit	Yes	No
Theft or malicious damage	Yes	No
Shortage or non-delivery of goods	Yes	No
Hijack of goods	Yes	No
Any other risk not specifically excluded	Yes	No

They determine the point of change of responsibility between the buyer and seller. Incoterms inform sales contracts defining respective obligations, costs, and risks involved in the delivery of goods from the seller to the buyer.

Some commonly used Inco Terms:

Ex Works (EXW): Seller has to place the goods at the disposal of the buyer. Carriage and Insurance are arranged by buyer.

Free On Board (FOB): Seller delivers when the goods pass the ship’s rail at the named port of shipment. This means the buyer has to bear all costs &risks to the goods from that point.

Cost, Insurance, Freight (CIF): The seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the cost & freight necessary to bring goods to the named port of destination, but the risk is transferred from seller to buyer.

Other INCO Terms used in the market :

Rules for Any Mode (or modes) of Transport

• CIP - Carriage and Insurance Paid
• CPT - Carriage Paid To
• DAP - Delivered At Place
• DAT - Delivered At Terminal
• DDP - Delivered Duty Paid
• EXW - Ex Works
• FCA - Free Carrier

Rules for Sea and Inland Waterway Transport Only

• CFR - Cost and Freight
• CIF - Cost, Insurance and Freight
• FAS - Free Alongside Ship
• FOB - Free On Board

Note: New Incoterms 2020 has been published recently.

• Wilful Misconduct of the Assured
• Ordinary leakage, ordinary loss in weight or volume or ordinary wear and tear of the subject-matter insured
• Insufficiency or unsuitability of packing
• Inherent vice or nature of the subject-matter insured
• Delay
• Insolvency or financial default of owner, manager, charters or operators of the vessel
• Unfitness/ Unseaworthiness of carrying conveyance