Insurance
Marine Insurance
Marine Cargo Insurance
What does it cover?
This policy covers loss of or damage to goods in transit by sea, air and land.
Key Coverage
All Risks (ICC A): This is the broadest form of coverage, protecting against almost all perils except those specifically excluded and depending on the following :
Institute Cargo Clauses (ICC): These are standardized clauses used in marine cargo insurance policies. ICC A is the broadest form of coverage, while ICC B and ICC C offer more limited protection.
Institute Cargo Clauses (A) 1.1.82 / 1.1.09
Covers all risks of loss of or damage to the goods in the Institute Cargo Clauses (A) except as provided in the exclusions.
Institute Cargo Clauses (B) 1.1.82 / 1.1.09
Covers against loss of or damage to the goods attributable to or caused by in the Institute Cargo Clauses (B):
- Fire or explosion
- Vessel or craft being stranded grounded sunk or capsized
- Overturning or derailment of land conveyance
- Collision or contact of vessel craft or conveyance with any external object other than water
- Discharge of cargo at port of distress
- Earthquake volcanic eruption or lightning
- General average sacrifice
- Jettison
- Washing overboard
- General average and salvage charges
- Entry of sea, lake or river water into the vessel craft hold conveyance container lift van or place of storage
- Total loss of any package lost overboard or dropped whilst loading on to, or unloading from vessel or craft
Basic of Sum Insured
Annual Policy:
Based on declaration basis, sum insured for master policy representing an estimate of aggregate value of consignments within a period of 12 months
Single Policy:
Based on invoice value + uplift
What We Don't Cover
Note:
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.
Institute Cargo Clauses (A), (B) or (C) 1.1.82
- Loss damage or expense
- attributable to willful misconduct of the assured.
- caused by inherent vice or nature of insured items.
- ordinary leakage, ordinary loss in weight or volume, or ordinary wear & tear of insured items.
- arising from insolvency or financial default of the owners, managers, charterers or operators of the vessel
- arising from unseaworthiness of vessel or craft, unfitness of vessel , craft, conveyance, container or lift van for the safe carriage of insured items, where the Assured or their servants are privy to such unseaworthiness or unfitness when the insured items are loaded therein.
- caused by insufficiency or unsuitability of packing or preparation of the insured items (packing shall be deemed to include stowage in a container or lift an but only when such stowage is carried out prior to attachment of this insurance by the Assured or their servants).
- proximately caused by delay, even though the delay be caused by a risk insured against.
- arising from the use of any weapon of war or any weapon employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.
- the Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the insured items to destination, unless the Assured or their servants are privy to such unseaworthiness or unfitness.
- war and Strikes (normally included by way of the Institute War & Strikes Clause subject to an additional premium).
Institute Cargo Clauses (A), (B) or (C) 1.1.09
- Loss, damage or expense
- attributable to willful misconduct of the assured.
- caused by inherent vice or nature of insured items.
- ordinary leakage, ordinary loss in weight or volume, or ordinary wear & tear of insured items.
- caused by insolvency or financial default of owners managers charterers or operators of the vessel where at the time of loading of the insured items on board the vessel, the Assured are aware or in the ordinary course of business should be aware that such insolvency or financial default could prevent the normal prosecution of the voyage. This exclusion does not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the insured items in good faith under a binding contract.
- arising from unseaworthiness or unfitness of vessel or craft for safe carriage of insured items, and where the Assured are privy to such unseaworthiness or unfitness at the time the insured items are loaded therein.
- Exclusion shall not apply where the contract of insurance has been assigned to the party claiming hereunder who has bought or agreed to buy the insured items in good faith under a binding contract.
- arising from unfitness of container or conveyance for the safe carriage of the insured items, where loading therein or thereon is carried out prior to attachment of this insurance or by the Assured or their employees and they are privy to such unfitness at the time of loading.
- caused by insufficiency or unsuitability of packing or preparation of insured items to withstand ordinary incidents of the insured transit where such packing or preparation is carried out by the Assured or their employees or prior to the attachment of this insurance (packing shall be deemed to include stowage in a container and “employees” shall not include independent contractors).
- proximately caused by delay, even though the delay is caused by a risk insured against.
- directly or indirectly caused by or arising from the use of any weapon or device employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.
- The Insurers waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the insured items to destination.
- War and Strikes (normally included by way of the Institute War & Strikes Clause subject to additional premium).
Warehousemen/Carrier's Liability Insurance
What does it cover?
This policy protects your Legal Liability as well as defense cost and expenses when you transport and store the goods and merchandise in your care, custody or control.
Key Coverage
Coverage during storage and transit
Cover applies while goods and merchandise are:
- Temporarily stored in a warehouse you operate in.
- On a vehicle in the ordinary course of transit.
Basic of Sum Insured
1. Estimated Maximum Loss: To estimate the maximum potential loss that could arise from a single incident.
2. Aggregate Limit: To estimate an overall limit on the total amount of coverage available during a policy year. This means that if multiple claims occur during the year, the total amount paid out cannot exceed the aggregate limit.
3. Contractual Requirement: To cover on the limit stipulated in a contract
What We Don't Cover
Note:
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.
- Loss or damage caused by rust, wear or tear, gradual deterioration, moths, vermin, inherent vice or damage sustained due to or resulting from any repairing, restoration or retouching process.
- Loss caused by the infidelity of the insured’s employees or persons to whom the insured property is entrusted.
- Loss due to forged warehouse receipts.
- Loss or damage caused by change of temperature resulting from the total or partial destruction of any refrigerating or cooling apparatus from any cause.
- Inadequate or insufficient packing.
- Delay, loss of market, loss of use, consequential loss or inherent vice.
- Unexplained loss, mysterious disappearances or shortage disclosed upon taking inventory.
- Loss of or damage to the goods which are stolen from unattended motor vehicles unless the motor vehicles are garaged in a building or parked in a fully enclosed yard, the openings in the motor vehicles closed and securely locked, and all keys removed so far as fire regulations permits and all other ‘exceptions’ in the policy remain unchanged.
- Fines, penalties punitive or exemplary damages.
Inland Transit Insurance
What does it cover?
This policy covers against all risk of loss and/or damage to the insured goods whilst in transit by road and/or rail.
Key Coverage
All-risk type of cover protects against unforeseen losses or damages to insured properties, with specific exclusions outlined in the policy.
Basic of Sum Insured
Annual Policy:
Based on declaration basis, sum insured for master policy representing an estimate of aggregate value of consignments within a period of 12 months.
Single Policy:
Based on invoice value.
What We Don't Cover
Note:
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.
- Perils Excepted: Certain perils are typically excluded from coverage, such as inherent vice of the goods, delay, and willful acts of the insured.
- War Risks: War risks are often excluded unless specifically included in the policy.
- Strike Risks: Strike risks are often excluded unless specifically included in the policy.
- Terrorism Risks: Terrorism risks are often excluded unless specifically included in the policy.
Marine Hull Insurance
What does it cover?
This policy covers your vessel during its operation within the specified trading limits.
Key Coverage
- Hull and machinery insurance.
- War risks.
- Disbursements and increase value insurance for commercial hulls such as:
- Tugs.
- Barges.
- Coastal and ocean-going vessels.
Note: Malaysian registered vessels have to be insured locally in Malaysia
Coverage and benefits are subject to
Institute Time Clauses (Hull) 1.10.83.
Partial Loss and Total Loss of your vessel
Institute Time Clauses (Total Loss only) 1.10.83.
Total Loss (Actual Total Loss and Constructive Total Loss) of your vessel caused by:
- Perils of the seas, rivers, lakes or other navigable waters
- Fire and explosion
- Violent theft by persons from outside the vessel
- Jettison
- Piracy
- Breakdown of or accident to nuclear installations or reactors
- Contact with aircraft or similar objects, or objects falling therefrom, land conveyance, dock or harbor equipment or installation
- Earthquake, volcanic eruption or lightning
And provided such loss or damage has not resulted from
- Lack of due diligence by the Assured, Owners or Managers.
- Accident in loading, discharging or shifting cargo or fuel
- Bursting of boiler, breakage of shafts or any latent defects in the machinery or hull
- Negligence of Master Officer, Crew or Pilots
- Negligence of repairers or charterers, provided they are not Assured hereunder
- Barratry of Master Officers or Crew
Basic of Sum Insured
1. Replacement Cost: This method calculates the cost of replacing the damaged property with new items of similar quality and condition after deducting the depreciation due to wear and tear.
2. Reinstatement Value (Old for New): This method calculates the cost of rebuilding the damaged property to its original state,including the cost of removing debris and preparing the site subject to the age of the property is below 5 years
3. Average Clause: This clause stipulates that if the sum insured is less than the full value of the property, the insurance company will only pay a proportionate amount of the claim. It’s important to avoid underinsurance to prevent this from happening.
What We Don't Cover
Note:
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.
War Risks, Strike Risks and Malicious Acts
for an additional premium, coverage may be extended to the “Institute War and Strikes Clauses (Hulls – Time)”.Nuclear exclusion.
Radioactive contamination, chemical, biological, bio-chemical and electromagnetic weapon.
Marine Protection and Indemnity (PI) Insurance
What does it cover?
Specialised Liability insurance fo shipowners, operators, and charterers. It Provides coverage for legal liability and expenses arising from owning or operation a vessel.
Key Coverage
- Third Party Liability
- Passenger Liability
- Cargo Liability
- Collision Liability
- Environment Liability
- Legal and Defense Costs
Basic of Sum Insured
- Type Of Vessel
- Geographic Operation
- International Regulation
- Trade routes and Cargo Type
What We Don't Cover
Note:
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.
Damage to Insured Vessel
War Risk
Illegal Activities
Commercial Fines