Marine
Cargo Insurance, Marine Transit Insurance, Cargo Transit Insurance and Goods In
Transit Insurance
Arranged
By
ACPG
Management Sdn Bhd
Head
Office
158-3-7,
Blok 158, Kompleks Maluri,
Jalan
Jejaka, Taman Maluri, Cheras,
55100
Kuala Lumpur, Malaysia.
+603-92863323
Marine
Cargo Insurance
Marine
Cargo Insurance refers to the insurance of goods shipped from one place to
another, anywhere in the world.
Coverage
is usually effected on a "per voyage" basis that is from the time the
goods leave the premises of the seller until the time they finally arrive at
the buyer's premises. There is no period specified in the policy.
Coverage
can either be effected by the buyer or the seller depending on the contract of
sales. There are different types of recognised Sale Contracts, the most common
affecting Marine Insurance are:
F.O.B.
(Free On Board)
It
is the seller's obligation to place the goods on board vessel at his own
expense and obtain the Bill of Lading. He (the Seller) is also responsible for
all loss or damage until goods are on board vessel. Thereafter the goods are at
buyer's risks.
C
& F (Cost and Freight)
Seller
provides goods with all freight and other charge paid to the port of discharge
but does not include insurance charges. He (the Seller) is also responsible for
the loss or damage to goods until delivery on to the carrying vessel but it is
the responsibility of buyer to arrange insurance.
C.I.F.
(Cost, Insurance & Freight)
The
Seller undertakes to arrange and pay for all costs of delivering the goods and
insurance up to final destination because the buyer has paid for these in the
sale price. The insurance policy is assigned to the consignee and he can claim
under the policy as though he had arranged the insurance himself.
Type
of Marine Cargo Insurance Policies
1.Individual
Policy
These
are policies issued on each and every shipment upon request by the
Assured.
2.Open
Cover Policy
The
Open Policy is a continuous policy that is issued on certain date and remains
in force until cancelled. The policy provides automatic protection for all
shipments described in the policy.
This
arrangement is suitable for merchants who are engaged in regular import/export
or internal trade.
Coverage
in Marine Cargo Insurance
Shipment
by vessel
Sending
by air
Inland
Transit
Sending
by post or courier service
1.Shipment
By Vessel
Types
of coverage available are :
Institute
Cargo Clauses ( C )
Institute
Cargo Clauses ( B )
Institute
Cargo Clauses ( A )
Institute
Cargo Clauses ( C )
It
covers loss of or damage to the interest insured attributable to :
fire
or explosion
vessel
being stranded, grounded, sunk or capsized
overturning
or derailment of land conveyance
collision
or contact of vessel with external object other than water
discharge
of cargo at a port of distress
It
also covers loss or damage to interest insured caused by :
General
Average Sacrifice
Jettison
Note
:
General
Average arises where a sacrifice is incurred in connection with a venture with
a view to saving or minimizing the loss as a whole. This means that some of the
cargo needs to be sacrificed in order to save others. There is liability
resting upon the owners of cargo to contribute towards the damages or expenses
suffered by those whose cargoes are sacrificed.
Institute
Cargo Clauses ( B )
In
addition to coverage provided under "C" policy, it also covers loss
or damage to goods insured attributable to earthquake, volcanic eruption or
lightning and loss of or damage to interest insured by :
entry
of sea, lake or river water into vessel
total
loss of any package lost overboard or dropped whilst loading on to, or
unloading from vessel
Institute
Cargo Clauses ( A )
It
covers all fortuitous losses of every description but excludes loss, damage or
expense proximately caused by delay, inherent vice or nature of the
goods.
General
Exclusions for all Clauses ( A, B or C )
Willful
misconduct of the Assured
Ordinary
leakage, loss in weight, wear and tear
Insufficient
or unsuitability of packing
Inherent
vice or nature of subject-matter insured
Unseaworthiness
of vessel (when the Assured is privy to it)
Delay
even though caused by a risk insured against
Insolvency
or financial default of carrier
Deliberate
damage or destruction of the subject-matter insured
Use
of nuclear weapon
War
and Strikes
Terrorism
Radioactive
contamination, chemical, biological, bio-chemical and electromagnetic weapons
Nuclear
energy risk
Seepage
and pollution
Marine
Hull Insurance
Marine
Hull Insurance covers loss or damage to hull and machinery. The hull is the
structure of the vessel. Machinery is the equipment that generates the power to
move the vessel and control the lighting and temperature system such as boiler,
engine, cooler and electricity generator.
Scope
of Cover
Institute
Time Clauses
These
are the main clauses and most important in Marine Hull policies. Time Clauses
covers for a specific period usually 12 months. As the nature and degree of
risks which the Insurer run vary according to the kind of vessel, there exist a
number of categories in the Time Clauses. They are : -
Institute
Time Clauses (Hull)
Institute
Time Clauses (FPA)
Institute
Time Clauses (Total Loss Only)
1.Institute
Time Clauses (Hull)
Provides
the maximum coverage offered by hull insurance.
Perils
Covered
1.Perils
of the sea
2.Fire
& explosion
3.Violent
theft
4.Piracy
5.Breakdown
of accident to nuclear installations etc.
6.Contact
with aircraft
7.Earthquake,
volcanic eruptions or lightning
8.Accidents
in loading etc.
9.Bursting
of boilers
10.Breakage
of shaft
11.Latent
of defect
12.Negligence
of masters etc.
13.Negligence
of repairers etc.
14.Negligence
of charterers etc.
15.Barratry
Excluded
Perils
1.Wilful
misconduct of the Assured
2.Loss
caused by delays
3.Wear
and tear
4.Rats
and/or vermin
5.Injury
to machine not proximately caused by maritime peril
Paramount
Exclusions in the Policy
1.War
2.Strikes
3.Malicious
acts
4.Nuclear
exclusion
Other
Losses & Expenses Covered
1.Pollution
Hazard
2.3/4th
Collision Liability
3.General
Average and Salvage
4.Sue
and Labour
5.Constructive
Total Loss
2.Institute
Time Clauses (FPA)
The
coverage of these clauses are similar to that of Hulls Clauses but exclude
coverage on machinery damages in all respects. It is advised that all vessels
which exceed 15 years of age or older, if the risk accepted, to give this
coverage only. Past experience shows that older vessels suffer serious
casualties due to machinery damage. If machinery damage is excluded due to
limitation of this clause, there is a better chance of making hull underwriting
profit.
3.Institute
Time Clauses Hulls (Total Loss Only)
As
the name suggested, this clause only covers in the event of it becoming a total
loss by arrangement, actual, compromised or constructive total loss. The rate
for this cover is low and usually this cover is only extended to old vessel
(but not more than 20 years) or on accommodation only.
Institute
Yacht Clauses
This
clause are basically Institute Hull clauses amended for yachts and include all
damages to hull, masts, spars, sails and other equipment on board the yacht but
does not include damage whilst the yacht is racing.
Caution
should be taken with regard to charter yachts and if the risk is accepted, the
following warranty must be included into the policy conditions, namely:
'Warranted
that professional skipper & crew is in attendance at all times'
Full
details of the Skipper and Crew's experience must be obtained.
Institute
Voyage Clauses
This
insurance covers risks during a voyage from one port or place to another or a
round voyage. In so far as ordinary vessels are concerned, as most of them are
usually insured under a time policy, voyage insurance is effected only in such
cases as delivery voyage of a new vessel to buyer from the shipyard or a voyage
of a vessel to be repaired at shipyard. The period of coverage is usually less
than a year and the scope of coverage is almost identical that of time policy.
In which case, there are also the FPA and Total Loss cover.
Builders'
Risk Insurance
This
type of insurance covers whilst vessel is under construction. During that
period, it is exposed to risks such as fire, tidal wave, capsize or failure in
launch. It is also exposed to collision and sinking on a trial trip. The
builder's risk insurance effected by shipyards provides cover against all such
risks. The insured value is the contract price or the estimated completed value
of the vessel if there is no contract price. The period of insurance should be
from the time of inception of the construction to the time of delivery. Hence,
the period can well exceed 12 months.
Hull
War And Strike Risks Insurance
War
and strike risks are usually excluded from the cover of ordinary marine
insurance policies in any market throughout the world. This insurance covers
exclusions under Article 11 of the Institute Time Clauses. It can only be
effected on vessels which are insured against ordinary marine risks. The rate
of premium fluctuates frequently reflecting the climate of world politics at
the time of inception of the risk.
Terrorism
Insurance
Terrorism
cover is an excluded risk worldwide. There will be no consideration for
acceptance if this coverage is required.
Loss
of Time Insurance
This
insurance indemnifies a ship owner for loss of anticipated profits or operating
costs where the insured vessel is forced to be out of commission in consequence
of damage caused by maritime accident. The period of insurance is one year and
the insurable value is calculated based on the following: -
estimated
operating costs
estimated
chartering to be earned
estimated
gross income of freight
The
loss of time is covered on the basis of the number of days required for the
completion of the repairs, counting from the day following the day of the
accident. The Insurer's liability per any one accident is limited to certain
number of days up to 180 days throughout the year.
Malaysia
Insurance Company Listing
AIG
Malaysia Insurance Berhad
AXA
Affin General Insurance Berhad
Allianz
General Insurance Company (Malaysia) Berhad
AmGeneral
Insurance Berhad
Berjaya
Sompo Insurance Berhad
Chubb
Insurance Malaysia Berhad
Danajamin
Nasional Berhad
Liberty
Insurance Berhad
Lonpac
Insurance Berhad
MPI
Generali Insurans Berhad
MSIG
Insurance (Malaysia) Bhd
Overseas
Assurance Corporation (Malaysia) Berhad
Pacific
& Orient Insurance Co. Berhad
Pacific
Insurance Berhad, The
Progressive
Insurance Berhad
QBE
Insurance (Malaysia) Berhad
RHB
Insurance Berhad
Tokio
Marine Insurans (Malaysia) Berhad
Tune
Insurance Malaysia Berhad
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