All risks coverage

[asamaha]

An insurance document indicating that it covers Institute Cargo Clauses (A) satisfies a condition in a credit calling for an “all risks” clause or notation.

Can an insurance document that covers Institute Frozen Meat Clauses (A) be understood to cover all risks too?

Thanks in advance
Antoine Samaha

Thanks

[AndyHunt]

Bankers are not insurance experts and therefore should not look beyond the UCP600 or international standard banking practice for a solution to irregularities in documents that have been or will be created by a presentation of documents that do not reflect the terms of the letter of credit.
Accordingly, as per ISBP745 paragraph K18 the only alternative notation on an insurance document that requires ‘all risks’ coverage is one that states coverage is subject to Institute Cargo Clauses (A) or, if air shipment takes place, Institute Cargo Clauses (Air). Thus the Institute Frozen Meat Clauses (A) falls outside of scope and would be considered non-compliant.

[asamaha]

Any other opinion please
Antoine

[GSham]

Agreed with Andy. The beneficiary should have sought an amendment to the LC in regard to the insurance document requirement.