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Cargo Insurance provides cover to the owner of goods against loss or damage to the goods whilst in transit, from a place of shipment to a destination named in the policy. Transits may be by approved conveyances by Sea, Air, Land or a combination of Sea/Air and land.
The shipment can be within Malaysia and/or import to or export from Malaysia.
The insurance can be taken up by the buyer or seller of the goods. The sum insured is based on the invoice or purchase value. Insurers normally allow the buyer or seller to insure their profits from the proceeds of the goods up to 10% of the sum insured.
The period of insurance is for the duration of the journey and the policy will terminate once the goods reaches the final destination named in the policy.
If you have regular shipments, we can arrange a Marine Open Cover for you. All the shipments falling within the ambit of the open cover are automatically covered by us, subject to full declaration of each shipment.
Types of Cover
- Shipment by Sea
The cover can be on All Risks or Named Peril basis. The Institute Clauses used in the International marine markets are:
- Institute Cargo Clause C
The cover is restricted named perils i.e. fire, stranding, sinking, collision.
- Institute Cargo Clauses B
It covers all the perils in the ‘C’ clause plus water damage caused by entry of the sea, lake or river water as well as total loss of any package lost overboard or dropped during loading or unloading from the vessel.
- Institute Cargo Clauses A
This is an All Risk cover. All the perils under ‘B’ clause is covered together with other types of damage like breakage, theft, pilferage, non delivery and all types of water damage, including rainwater.
- Shipments by Air
- Institute Cargo Clauses (Air)
This is an All Risk cover for all shipments sent by air. The cover is similar to the Institute Cargo Clause A.
- Shipment on land i.e. by lorry or rail
- Inland Transit All Risk cover including theft.
Additional cover
The common extension is War and Strike as per Institute War & Strikes clauses.
Common exclusions
- Ordinary leakage, loss in weight or volume, inherent vice, mechanical or electrical derangement of machinery, insufficiency or unsuitability of packing of the goods
- Loss damage due to willful misconduct of the Insured
- War & strike
For further details please contact us.
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