The Difference between ICC and ITC
- Samiksha bagal
- Nov 8
- 4 min read
Updated: Nov 17
Table of Contents
Understanding ICC (Institute Cargo Clauses)
Understanding ITC (Inland Transit Clauses A, B, C)
The Core Difference Between ICC and ITC
Why Indian Businesses Prefer ITC for Domestic Shipments
Choosing Between ITC (A), (B), and (C)
The Role of Marine Insurance for Domestic Shipments
FAQs
When it comes to marine insurance for domestic shipments, a lot of businesses in India get confused between ICC and ITC. While both sets of clauses fall under marine insurance, each can only be applied based on the method and scope of transportation.
ICC (Institute Cargo Clauses) mainly refers to insurance for goods transported internationally or by sea, whilst ITC (Inland Transit Clauses) is for domestic shipments transported by road, rail, and/or inland waterways. Knowing the difference helps businesses pick the right coverage for their goods and avoid problems with coverage.
Understanding ICC (Institute Cargo Clauses)
The ICC is are standardized clauses, created by the Institute of London Underwriters (ILU), which govern marine cargo insurance around the world. The ICC is intended for goods shipped by sea or air; as a result, the ICC is commonly used with the international terms of trade (FOB or CIF).
The ICC comes in three variants:
ICC (A): All risks coverage—the widest protection against all loss or damage, except exclusions.
ICC (B): Covers named risks such as fire, explosion, vessel capsizing, or collision.
ICC (C): The most restrictive, covering only major incidents like sinking or derailment.
While ICC provides comprehensive coverage for ocean-going cargo, it is not tailored for India’s inland logistics network.
Understanding ITC (Inland Transit Clauses A, B, C)
Inland Transit Clauses (ITC) are specifically designed for domestic cargo transported within a country — by road, rail, or inland waterways. Just like ICC, ITC has three variants:
Clause Type | Coverage Scope | Common Use |
ITC (A) | Covers all risks, including theft, mishandling, overturning, or accident during transit. | High-value goods or fragile cargo. |
ITC (B) | Covers limited perils such as fire, explosion, or collision. | Moderate-risk goods. |
ITC (C) | Basic coverage for major incidents like fire or derailment. | Bulk or low-value goods. |
ITC policies are crucial in marine insurance for domestic shipments, ensuring coverage for cargo from the warehouse to the destination across India’s road and rail network.
The Core Difference Between ICC and ITC
Aspect | ICC | ITC |
Transit Type | International sea or air shipments | Domestic land or inland shipments |
Applicability in India | Export/import goods | Goods within India |
Coverage Variants | ICC (A), (B), (C) | ITC (A), (B), (C) |
Mode of Transport | Sea, air | Road, rail, and inland waterways |
Risk Nature | Marine perils, piracy, sea-related risks | Transit risks like theft, collision, and overturning |
Premiums | Higher, based on global trade | Lower, suited for inland logistics |
In short, ICC protects cargo moving across borders by sea, whereas ITC safeguards goods moving within India by road or rail.
Why Indian Businesses Prefer ITC for Domestic Shipments
India’s trade infrastructure is heavily dependent on road and rail transport, with over 70% of cargo moved by road. This makes ITC far more relevant than ICC for most Indian companies involved in domestic trade.
Key reasons include:
Mode Suitability: ICC is designed for marine voyages; ITC matches India’s inland transit ecosystem.
Cost-Effectiveness: ITC premiums are lower and more practical for short-distance road/rail cargo.
Regulatory Alignment: Insurers in India structure marine insurance for domestic shipments around ITC standards.
Claim Relevance: ITC covers common inland risks such as theft, accidents, and rough handling—rarely applicable under ICC.
Therefore, whether a small manufacturer shipping goods from Delhi to Mumbai or a logistics firm managing warehouse-to-retailer transfers, ITC (A, B, or C) provides the most suitable coverage.
Choosing Between ITC (A), (B), and (C)
Choosing the right ITC clause depends on your cargo’s risk profile and value:
ITC (A): For high-value or fragile goods requiring full protection.
ITC (B): For moderate-risk cargo where limited coverage suffices.
ITC (C): For bulk or low-risk goods where only catastrophic loss coverage is needed.
In every case, marine insurance for domestic shipments under ITC ensures cargo remains protected throughout its journey within India’s borders.
The Role of Marine Insurance for Domestic Shipments
Many businesses assume “marine insurance” applies only to sea voyages. In reality, it encompasses all transit insurance, including inland movement by road and rail.
Marine insurance for domestic shipments under ITC ensures:
Protection against damage, theft, or loss during inland transit
Continuity of operations despite logistical risks
Financial resilience for MSMEs and exporters managing supply chains within India
By selecting the appropriate ITC (A, B, or C), businesses can minimize losses from accidents, weather impacts, and mishandling during inland transport.
FAQs
Q1. What is the main difference between ICC and ITC?
ICC applies to international sea or air shipments, while ITC is meant for domestic shipments via road, rail, or inland waterways. For most Indian businesses, ITC is the correct form of marine insurance for domestic shipments.
Q2. Which clause should I choose for road or rail transport in India?
For domestic transit within India, always opt for ITC (A, B, or C) depending on your cargo’s value and risk exposure. ICC is not applicable for inland shipments.
Q3. Can ICC cover goods transported by road within India?
No. ICC clauses are designed for marine voyages, not inland transport. To ensure coverage for domestic cargo, use ITC as part of your marine insurance for domestic shipments.
Q4. What advantages does ITC have over ICC in the context of Indian logistics?
ITC is relatively less expensive and easier to claim. ITC is designed for the specific road and rail risks in India, such as accidents, theft, and handling damage, whereas ICC insures against some maritime risks.
Q5. How does ITC relate to MSMEs and small traders?
As it pertains to domestic logistics, for MSMEs, ITC-based marine insurance on domestic shipments provides protection to goods while in transit inland, lowering potential losses and increasing supply chain resilience through insurance.
In an ever-evolving logistics environment in India, a choice between ICC and ITC can be the defining aspect of how well your organization mitigates transit risk. The Inland Transit Clauses (ITC A, B, or C) will generally offer the best balance of affordability, suitability, and coverage on most domestic shipments.
ICC will always be required when engaging in international trade, but ITC will ensure that inland goods being transported on land are sufficiently covered under marine insurance for domestic shipments. This will allow businesses like yours to continue moving smoothly across India while being properly insured.
