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 in the policy schedule are not automatically insured, the Assured has to make prior arrangement for such insurance before the commencement of shipment.

Certificates of Insurance are issued for individual shipments and a supply of these Certificates is made to the Assured for them to issue accordingly. This is a legal document. The premium is charged for each shipment based on the terms described in the policy schedule.

The Assured is required to declare periodically (duration to be agreed, usually fortnightly or monthly) full details of each and every shipment made and submit a copy of each Certificate of Insurance issued.

The Assured is duty bound to declare and the Insurer agrees to accept all shipments falling within the scope of the Open Cover even though a loss has occurred prior to the declaration

A MOC should be offered only after careful consideration of the following: 

i) the Assured is engaged in regular import/export or internal trade and hence have a high volume of marine cargo insurance business.

ii) as a general guide, the Assured's annual marine cargo premium should be at least RM100,000/=

iii) the Assured has a good reputation and has a high level of integrity.

These are important factors, as there always a moral hazard of the Assured not declaring all their shipments in order to save on insurance premium.

b) Single Shipment Policy

This is a single voyage policy for a single shipment of cargo from one place to another. Commonly, the insurance attaches from the time the goods leave the shipper's or seller's warehouse or place of storage of the consignor and continues until it reach the Assured's premises or other fmal 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 with the Company.

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.

Benefits of Coverage

Commercial Contract Disputes

Pursuit of defense of any disputes or legal proceedings made by or brought against you over a contract or alleged contract for the sale, purchase, or hire of goods or services provided

Terms

• This Legal Shield claim is limited to RM 25,000 per shipment/marine certificate

• For any Marine Cargo claim, a 20% co-share is to be borne by the policyholder, applicable to each and every claim

• These embedded coverage benefits are only limited to Marine Cargo policyholders

• An exporter, also a business owner and a seller, had a sales contract with his foreign buyer. The exporter managed to deliver the goods in good condition as per contract. Unfortunately, the buyer failed to make payment after the delivery. The exporter then used the policy to pursue the buyer and managed to recover the outstanding debt. 

• An exporter, also a business owner and a vegetables supplier, entered into a logistics contract with a freight forwarder. The freight forwarder failed to fulfill certain conditions as stated in the contract such as providing the hail netting to cover the goods. Due to the freight forwarder’s negligence during the transit,  the goods were damaged. The exporter then used the policy and convinced the court that the incident had caused him financial loss due to the shortfall in payment from his client after the freight forwarder failed to deliver the goods in good condition. 

• A business owner, also a buyer and an importer, made a deposit payment for shipment of fresh fruits. The seller however failed to ship the cargo on time as per contract agreement and delivered the Mandarin Oranges after the Chinese New Year season which significantly reduced the customers’ demand. Due to the delivery delay,  the business owner refused to honour the balance payment. To recover the unpaid payment, the seller brought this matter to court. As a policyholder of the Legal Shield Insurance, the business owner covered his legal cost to defend the claims in court and negotiated the balance payment at a lesser amount to the buyer. 

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.

A further amount of 100% of the Marine Cargo Insurance premium spent for import and export shipments can be added to the taxable expenses of the Assured.

With this tax incentive the Assured is therefore encouraged to export on ''CIF'' (Cost, Insurance and Freight) basis and import on FOB (Free on Board) or "C & F" (Cost and Freight) basis.

2.1 Type of Sales Contract

a) CIF (Cost Insurance and Freight)

Under such a sales contract, the seller is responsible for all costs of delivering the goods up to the final port of destination.

The risk passes from the seller to the buyer at the port of loading as the cargo crosses the ship's flange or outer rails on loading.

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)

Under such a sales contract, 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.

Depending on the term of sale, the buyer's interest may commence from the time the cargo leaves the seller's premises or when the cargo crosses the ship's flange or outer rails on loading. The Marine Cargo Insurance commences from the time the buyer assumes an insurable interest.

c) FOB (Free on Board)

Under such a sales contract, the seller is responsible for all costs 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.

作为减少海外保险费流出努力的一部分，马来西亚政府允许为海上货物保险支付的双重税收减免福利，前提是此类保险是由马来西亚保险公司提供的。 这种激励措施适用于出口和进口货物。

用于进出口货物的海运货物保险费的 100% 的额外金额可以添加到被保险人的应税费用中。

有了这项税收优惠，被保险人因此被鼓励以“CIF”（成本、保险和运费）为基础出口，并以 FOB（船上交货）或“C & F”（成本和运费）为基础进口。

2.1 销售合同类型

a) CIF（成本保险加运费）

根据此类销售合同，卖方负责将货物交付至最终目的港的所有费用。

当货物在装货时越过船的凸缘或外轨时，风险在装货港从卖方转移到买方。

CIF 条款包括成本、保险和运费加上一定百分比（通常为 10%）以支付杂费和/或进口关税。

b) C & F（成本加运费）

根据此类销售合同，买方负责安排保险。 卖方仅负责将货物运至目的港的运费及其他费用。

根据销售条款，买方的利益可能从货物离开卖方场所或货物在装载时越过船舶法兰或外轨时开始计算。 海运货物保险自买方承担可保利益之时起生效。

c) FOB（船上交货）

在这样的销售合同下，卖方负责将货物安全运送到远洋轮船上并取得提单的所有费用。

买方负责安排将货物运至最终目的地的保险。 

The following are the usual type 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 

For a comparison of the scope of cover between ICC (A), (B) & (C), please see Appendix B -16 (i). 

d) Total Loss Only cover ej Institute Cargo Clauses (Air) [excluding sendings by Post) 

f) For shipments involving frozen meat and food, timber and commodities, the Institute Cargo Clauses have been adapted to their special requirements, for a listing of these special Clauses. please see Appendix B-16 (ii).

以下是提供给被保险人的常见保险类型

a) 协会货物条款 (ICC) (A) 1.1.82

b) 协会货物条款 (ICC)(B) 1.1.82

c) 协会货物条款 (ICC) (C) 1. 1.82

ICC (A)、(B) 和 (C) 的覆盖范围比较，请参见附录 B -16 (i)。

d) 全损仅涵盖 ej Institute 货物条款（空运）[不包括邮寄）

f) 对于涉及冷冻肉类和食品、木材和商品的货物，协会货物条款已根据其特殊要求进行了调整，以列出这些特殊条款。 请参见附录 B-16 (ii)。 

Marine policies may be extended to cover War Risks subject to payment of an additional premium. The War Risks rate is prescribed by the War Risk Rating Committee who issues this from time to time. It must be noted that War Risks cannot be granted for the transit of good whilst on land.

War Risks cover attaches when the goods are loaded on the ocean going vessel and terminates on discharge at the final port or place of discharge or on expiry of 15 days from midnight of the day of arrival of the vessel at the final report of discharge.

在支付额外保费的情况下，海事保单可扩展至承保战争险。 战争风险率由战争风险评级委员会规定，该委员会不时发布此信息。 必须注意的是，在陆地上运输货物不能获得战争险。

战争险承保货物装上远洋船只并在最终卸货港口或卸货地点卸货时终止，或自船舶到达最终卸货报告之日午夜起满 15 天时终止。 

This extension is covers loss or damage to the interest insured caused by strike, locked-out workmen or persons taking part in labour disturbances, riots or civil commotion, act of terrorists or any persons acting from a political motive.

此扩展承保因罢工、停工工人或参与劳工骚乱、暴动或民众骚乱的人员、恐怖分子或任何出于政治动机行事的人员而造成的被保险利益损失或损害 

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