This type of insurance indemnifies the Assured against the loss of cargo whilst in transit, usually from a warehouse (of departure) to a warehouse (of arrival) basis caused by a peril insured. The insurance is suitable for shipment by sea or by air and must be arranged before the commencement of the shipment of the insured cargo.

Marine Cargo Insurance policies may be arranged on the following basis :-

a) Marine Open Cover (MOC) Policy
This is a continuous policy that is issued to the Assured commencing from an agreed date and remains in force until cancelled.  A description of the cargo insured, the maximum upper value limit per shipment and the terms of cover are specified in the policy schedule.  The MOC provides the Assured automatic coverage for all shipments described in the policy schedule up to the limit specified.  Shipments outside the description of the policy schedule are not automatically insured.  Certificates of Insurance are issued for individual shipments.  The premium is charged for each shipment based on the terms described in the policy schedule.

b) Single Shipment Policy
This is a single voyage policy for a single shipment of cargo from one place to another.  The insurance commences from the time the goods leave the shipper’s or seller’s warehouse or place of storage of the consignor and continues until it reaches the Assured’s premises or other final warehouse at the destination named in the policy.  Single shipment policy is suitable for clients who do not have regular shipments and hence, do not have a Marine Open Cover policy. 

c) Annual Policy
This is an Open cover but issued to cover a specific period of time, usually 12 months.  A provisional or deposit premium is normally charged based on the estimated annual turnover and is adjusted upon expiry based on actual turnover declared.  Alternatively, the premium is debited against monthly declaration received.

Double Taxation Benefit
The Malaysian Government has allowed a Double Taxation Relief Benefit for payments made for Marine Cargo Insurance provided such insurance is made from a Malaysian insurance company. This incentive is allowed for both export and import shipments.

Types of Sales Contracts
a) CIF (Cost Insurance and Freight)
The seller is responsible for all costs of delivering the goods up to the final port of destination. The CIF terms is inclusive of cost, insurance and freight plus a percentage (usually 10%) to cover incidental expenses and/or import duty.

b) C & F (Cost & Freight)
The buyer is responsible to arrange for the insurance.  The seller is only responsible for the freight and other charges to deliver the cargo to the port of destination.  The C & F Marine Cargo Insurance commences from the time the buyer assumes an insurable interest. 

c) FOB (Free on Board)
The seller is responsible for all costs under an FOB arrangement to deliver the cargo safely on board the ocean going ship and obtain a bill of lading.  The buyer is responsible to arrange for the insurance for the shipment of the cargo to the final destination.

Scope of cover
The following are the usual types of coverage offered to the Insured

a) Institute Cargo Clause (ICC) (A) 1.1.82
b) Institute Cargo Clause (ICC) (B) 1.1.82
c) Institute Cargo Clause (ICC) (C) 1.1.82

The Policies may be

a) Single Shipment Policy
This is a single voyage policy for a single shipment of cargo from one place to another.  Single shipment policy is suitable for clients who do not have regular shipments.

b) Annual Policy
This is an Open cover but issued to cover a specific period of time, usually 12 months.  A provisional or deposit premium is usually charged based on the estimated annual turnover and is adjusted upon expiry based on actual turnover declared.  Alternatively, the premium is debited against monthly declaration received.

Double Taxation Benefit
The Malaysian Government has allowed a Double Tax Relief Benefit for payments made for Marine Cargo Insurance as part of an effort to reduce the outflow of insurance premiums overseas, provided such insurance is made from a Malaysian insurance company.  This incentive is allowed for both export and import shipments.