Transportation & Transit Insurance

Marine Cargo Insurance  

Marine Cargo Insurance is a policy insures approved general merchandise in the event of physical loss or damage from any external cause. This includes new, packaged goods without unusual susceptibility to loss from breakage, pilferage, or the nature of the goods themselves. Marine Cargo Insurance policies do not cover all losses possible in the course of an international shipment.

Basis of indemnifies under Marine Cargo Insurance usually applied as per Institute Cargo Clause (ICC) for physical loss, damage, expenses and liability to the goods insured during direct transit from the time the goods leave the warehouse or place of storage of the seller and terminates either:-

  • Delivery to the consignee or other final warehouse or place of storage at the final destination
  • delivery to any other warehouse or place of storage, whether prior to or at the destination which the insured choose to use either for storage or for distribution
  • Coverage will expiry of 60 days after completion of discharge of the goods insured at the final port discharged, whichever shall first occur

Types of deliver contract may:

  • FOB (Free On Board) - Buyer arrange the insurance
  • C & F (Cost and Freight) - Buyer arrange the insurance
  • CIF (Cost Insurance and Freight) - Seller arrange the insurance

There are 3 main categories of covers as shown below :

PERILSICC(A)ICC(B)ICC(C)
Fire and Explosion000
Vessel/craft being stranded, grounded, sunk or capsized000
Overturning or derailment of land conveyance000
Collision or contact of vessels, craft or conveyance with external object other than water000
Discharged of cargo at a port of distress000
Earthquake, volcanic eruption or lightning00x
General average sacrifice000
Jettison000
Washing overboard00x
Entry of sea, lake or river water into vessel, craft, conveyance container liftvan and/or place of storage00x
Total loss of any package lost overboard or dropped whilst loading onto or unloading from vessel or craft00x
General average and salvage charges000
Pirates. thieves and non delivery0xx

0 - Covered, x - Not Covered

Type of Policy

There are two main type of policy designed for risk exposure and transaction of the insured.

1) Single Policy

This is suitable for the insured import or export cargo only occasionally. The policy insure the shipment of goods from one place to another in one voyage, from the time they leave the shipper's or seller's warehouse until they reach the consignee's or buyer's warehouse at the final destination. A full clause policy is issued for each consignment with premium due and payable when the policy is issued.

2) Marine Open Cover Policy

This policy provides continuous cover with a stipulated commencement date of cover and remains in force until cancelled. It provides automatic protection for all shipments falling within the Open Cover. This is suitable for traders who are engaged in regular import / export or internal trade.

The Insured must declare (monthly / quarterly) every shipment coming within the scope of the Open Cover to Insurer and premium will be charged accordingly. Sometime policy can be arranged by insured should pay deposit premium and adjust on declaration at end of policy period.


Major exclusions in Marine / Air Cargo Policy are:

  • 1. Inherent vice (infestation or loss due to the nature of product itself)
  • 2. Rejection of goods by customs
  • 3. Improper packing
  • 4. Abandonment of cargo
  • 5. Failure to pay or collect accounts
  • 6. Employee conversion or dishonesty
  • 7. Losses due to delay or loss of market
  • 8. Losses in excess of policy limits
  • 9. Losses inland more than 30 days after discharge of cargo
  • 10.Goods subject to an on-deck bill of lading
  • 11.Losses caused by temperature or pressure (air shipments)
  • 12. Failure to notify air carrier of preliminary loss in timely fashion:

    Obvious damage – 7 days,
    Hidden damage – 14 days,
    Non-delivery – 120 days 

  • 13.Used goods

Inland Transit Insurance  

We provides insurance protection for all cargo while in transit within the country against loss / damage caused by vehicle collision, overturning, derailment, explosion, theft as well as perils of nature, etc…

Terminal Liability Insurance  

The terminal operators are confronting the risk exposure toward not only on their office, warehouse, computer hardware, machinery, crane, moving plants, and all equipment toward natural perils or accidental human error, but also the liability against stevedore, vessel, cargo which might damage from the terminal operation or legally care, custody and control. Terminal Liability Insurance policy is design specific for risk exposure that terminal operator confront and diary operating practice.

Hull Insurance  

To provide cover for the vessel itself whatever parts like Physical Structure, Crane, Engine, etc

Protection & Indemnity Insurance  

It is normally call as P&I, which is special designed coverage for ships owner against liability toward third party arising from ships or operating of ships. Commonly P&I provide coverage by P&I Clubs to members. The insured should be enrolled as membership of club in order to take majority coverage as following;

  • Collision liability.
  • Third Party Property Damage
  • Pollution by oil or other substances.
  • Injury, illness and death of crew, passengers and stevedores.
  • Repatriation of crew and substitute expenses.
  • Towage contract liabilities, and liability under other contracts and indemnities.
  • a Cargo loss, shortage and damage.
  • Unrecoverable general average contributions.
  • Fines, certain legal and other costs.
  • Wreck removal.
  • Excess War Risks liability.

Project Cargo Insurance  

Some of materials or machinery which might be parts of a project cannot disassemble to fit the container size that it is consider very large or very heavy units and its might carry to destination by apply all modes of transportation such Ship, Rail, Truck or Air.

These kinds of cargo need expert to handling and also having high risk exposure too. We provide insurance service to arrange specific coverage policy integrated with supervision survey to support by handling cargo smoothly until final destination.

Delay-in-Start Up Insurance  

In conjunction with Project Cargo Insurance, the cargo might damage during carry and make serious affect to the construction project that it is delayed schedule because of undelivered of key material or machinery during transport. The financial lost of Principal now often collateralize loans with project assets and repay them purely on the basis of projected earnings. The critical financing factor, stringent conditions regarding delays in scheduled project completion have been added to contracts between financiers and principals, and particularly to those between principals and contractors. In turn, these conditions compel the parties involved to acquire the broadest possible insurance cover available in the market. This has prompted a sharp rise in demand for delay in start-up (DSU) cover, which is also known as advance loss of profit (ALOP) insurance.

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