Insurance Code is a standardized code used in international trade to identify specific types of cargo transport insurance, clauses, or coverage. It is typically established by insurance companies, the International Chamber of Commerce, or industry organizations. Common examples include the 'All Risks' code 110 of PICC, and ICC(A), ICC(B), ICC(C) of the Institute of London Underwriters. Usage scenarios: when a letter of credit requires specific insurance coverage, the code must be indicated on the policy or application form; in customs declaration, inspection, and electronic data interchange (EDI), codes improve processing efficiency. Precautions: code systems may vary by country and insurance company, so always verify against contract and letter of credit terms; incorrect codes may result in invalid insurance or failed claims. Difference from 'insurance clauses': clauses are specific textual descriptions, while codes are abbreviated identifiers. Difference from 'insurance types': types are classification names, while codes are digital representations. Foreign trade practitioners should be familiar with common codes and maintain consistency in documents.
📝 Examples
1. According to the letter of credit requirements, please insure against All Risks for 110% of the invoice value, with insurance code 110, and the code must be shown on the policy. (Note: In letter of credit transactions, specifying the insurance code can avoid document discrepancies.)
2. We have submitted the insurance application to the insurance company, in which the insurance code for marine cargo transport insurance is ICC(A). Please issue the policy accordingly. (Note: Using Institute of London Underwriters clause codes facilitates international recognition and claims.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
When using terms in contracts, specify the applicable version (e.g., Incoterms 2020)
For unfamiliar terms, use GlobalSync's multilingual email helper to confirm with your partner