ARRANGING YOUR
MARINE CARGO INSURANCE
IN MALAYSIA
| WHAT IS MARINE CARGO INSURANCE Marine cargo insurance covers the risks of loss, damage, expense and liability to your goods during transportation as cargo from one place to another place. For example, from your factory located inland to across the seas to the address of the buyer of your goods abroad. The process of transportation includes air frieght, ocean freight and overland carriage. The marine cargo insurance is to indemnify the cargo owners and /or the financiers such as banks againts financial loss arising as a result of physical loss, damage, expenses incurred or liability from the transportation process. Loss can arise from the perils of the sea such as rough wether, sinking, the ports or as a result of overturning, collision of and/or theft from overland transports. |
How do you purchase marine cargo insurance in Malaysia?
There is a vast choice of marine cargo insurers in Malaysia. After all, the have been offering marine cargo insurance in this country for over 100 years. There are now over 50 insurance companies providing marine cargo insurance to select from.
In addition, there are also over 40 professional insurance brokers, and countless insurance agents acting as intermediaries to arrange your insurance for you.
It would be advisable to work with an insurance company or broker or agent who can advise you on the most appropriate cover to meet your needs and requirements. You will also need to ensure that your insurer is financially strong and secure, and has the proper network of support services worldwide to promptly provide you with the neccessary service in the event of a claim.
What types of covers are available?
The insurance policy form and coverages are based on the internationally accepted London wordings. There are basically three levels of coverages:
- The Institute Cargo Clauses (A) provides "All Risks" coverage.
- The Institute Cargo Clauses (B) provides restricted coverage.
- The Institute Cargo Clauses (C) provides even more coverage.
Subsidiary clauses include the Institute War Clauses and the Institute Strikes Clauses.
Other specialised coverages are available for frozen meat and food, timber, and commodites.
These Clauses are self-contained in that they incorporate the coverages, the executions or exclusions, the terms and the conditions of the policy. These Clauses together with the Policy Schedule constitute the marine cargo insurance policy.
Your insurance intermediary or underwriter should be able to advise you on the approriate cover.
Accessibility
In Malaysia, you can select from a wide selection of insurance companies that can offer good claims services at competitive rates.
Local insurance companies can further help minimise your premiums by providing risk control advice such as better carago care as well as better methods of packing and despatch.
Cost Control
With so many insurance companies offering marine cargo insurance in Malaysia, you can shop around for an insurer that you can work with and trust. Once you have made your choice, you are able to personally negotiate a satisfactory price for your shipment, be it on CIF, CFR or FOB terms.
Global Representation
All of these insurance companies have extensive local network and worldwide claim representation.
Improve Balance of Trade
You are directly helping to improve the country's balance of trade, in turn, the national economy.
Risk Management
By buying locally, you can keep control of all insurance matters relating to your exports and thus, ensure the protection of your insurable interest.
Settlement of Claims in Malaysian Ringgit
As all claims settled in Malaysia will be paid in Malaysian Ringgit, there is no fear of loss through currency fluctuations.
Speciality Covers
Speciality coves such as for livestock , the timber trade and for the palm oil trade are also easily available in Malaysia.
Tax Incentives
In an effort to promote buying marine cargo insurance locally, companies are given a 200% tax deduction off all premiums paid for insurance on imports or exports.
Above all, you will be helping the nation to conserve foreign exchange by reducing the outflow of premiums to foreign insurers.
