Marine Cargo  
We have a specialised Marine Unit who see through all your needs speedily and efficiently. We give you full protection from the time your cargoes leave your factories or warehouse right to their final destinations. During which losses or damages are quickly and promptly indemnified.

1. WHO is responsible for purchasing insurance?

It can be effected by either the buyer or seller depending on the type of contract (INCOTERMS)

The 3 common ones are:-

  • A) Buy FOB (Free on board)
    The Seller delivers the goods sold onto vessel (say in Rotterdam) and his interest ceases. The Malaysian Buyer is responsible for insurance of goods the moment they are on board vessel until arrival at his warehouse in Malaysia and also to pay for freight charges to the shipping company.
  • B) Buy C&F (Cost & Freight)
    The Oversea Seller is responsible for freight charges until goods are delivered at the destination. The Malaysia Buyers is to effect insurance for transit of goods.
  • C) Sell CIF (Cost Insurance and Freight) or C&I (Cost & Insurance)
    Malaysian Sellers is responsible for all charges, including insurance premium (and freight), until goods are delivered at the destination where his contract with buyer.

2. What is double taxation benefits/incentives for imports & exports?

This is the incentive by the Malaysian Government to allow (1) Importer effective year of assessment 1982 and (2) Exporter effective 1995, a double deduction for marine insurance premium of imports and exports of goods into/out of Malaysia. Such insurance must be placed with locally Incorporated Insurance Company - Allianz General Insurance Malaysia is ONE!

The double taxation relief works as follows :
Amount insured for Cargo RM100,000.00
Rate 0.20%
Premium RM200.00
The tax relief is RM400.00 (i.e. RM200 X 2)

The advantages of insuring with Allianz General Insurance Malaysia besides the saving from Double Deduction incentives given by the Government are :-

  • You as Malaysian Exporter or Importer is helping the nation to conserve foreign exchange by reducing outflow of premiums to foreign Insurers.
  • This signals to others countries that Malaysian traders are capable and strong trading partner.
  • You can easily negotiate any claim for loss/damage with local Insurer rather than a foreign Insurer whom you are not familiar with.
  • In event of claims by buyer in foreign countries where you have insured with Allianz, we have a wide Network of Claims Settling agent who are authorised to settle claim on our behalf. Oversea Buyers are assured of good and fast service through our W.K. Webster Network of surveyor.

3. What factors contribute to the Marine Underwriter in arriving at a rate?

The main factors are :
  • The Client of Shipper's name
  • Description of Goods
  • Method of packing
  • Value of Cargo to be insured
  • Voyage - From where to where
  • Means of Transportation - By sea/By air/By land/By rail
  • Insurance Cover required - ICC (A) or ICC (B) or ICC (C)
  • Previous claims experience
  • Annual Turnover anticipated for next 12 months

4. What are the risks covered under Institute Cargo Clauses (A), (B) & (C) Clauses?

Fire or Explosion 0 1.1.1 1.1.1
Vessel/craft being stranded, grounded, sunk or capsized 0 1.1.2 1.1.2
Overturning or derailment of land conveyance 0 1.1.3 1.1.3
Collision or contact of vessel, craft or conveyance with external object other than water 0 1.1.4 1.1.4
Discharge of cargo at a port of distress 0 1.1.5 1.1.5
Earthquake, volcanic eruption of lightning 0 1.1.6  
General average sacrifice 0 1.2.1 1.2.1
Jettison 0 1.2.2 1.2.2
Washing overboard 0 1.2.2 -
Entry of sea, lake or river water into vessel, craft, hold, conveyance, container liftvan or place of storage 0 1.2.2 -
Total loss of any package lost overboard or dropped whilst loading on to or unloading from vessel/craft 0 1.3 -
General average and salvage charges 0 0 0
Theft, pilferages and non-delivery, hijacking, rough handling, contamination, wet damages, malicious act, etc 0 - -