What do the Institute Cargo Clauses define in cargo insurance terms?

What do the Institute Cargo Clauses define in cargo insurance terms?

• A. They regulate port fees.
• B. They govern crew rest periods.
• C. They define insured risks and exclusions in cargo insurance.
• D. They set the ship's speed limits.

Answer: (C)

Institute Cargo Clauses define what is covered and what is not covered in cargo insurance. They lay out the insured risks and the exclusions, along with the terms, conditions, and endorsements that govern a cargo insurance contract during transit. In short, they set the scope of coverage—which perils are insured and which are excluded—so both insurer and insured know precisely what is protected. They do not deal with port charges, crew rest periods, or ship speed limits.

Institute Cargo Clauses define what is covered and what is not covered in cargo insurance. They lay out the insured risks and the exclusions, along with the terms, conditions, and endorsements that govern a cargo insurance contract during transit. In short, they set the scope of coverage—which perils are insured and which are excluded—so both insurer and insured know precisely what is protected. They do not deal with port charges, crew rest periods, or ship speed limits.