As a traditional method of cargo transportation, shipping remains the most popular way of moving goods across significant distances. In 2023, for instance, the global cargo shipping market size was in excess of 11.6 billion tons, while airline cargo only accounted for over 52 million tonnes (or 1% of world trade by volume, although over 30% by value). Maritime trade is also expected to increase by a compound annual growth rate (CAGR) of 2.7% through to 2032.
As a result, businesses that rely on transporting goods (e.g. importers and exporters, logistics players, and freight forwarders), as well as ship owners and operators, will continue to rely heavily on shipping as an essential part of their revenue-generating activities. Transportation via the other modes (i.e. air and land) will also play an important role in Malaysian supply and value chains, especially as in Malaysia air cargo is expected to grow by a CAGR of 6.7% through to 2030, and there is a rising demand for road transportation leading to the transportation and storage sector growing 33% year-on-year in 2022.
In order to provide such businesses with financial peace of mind and properly manage the risks associated with the maritime sector, Berjaya Sompo offers a comprehensive portfolio of marine-related insurance policies that cover a wide range of possible risks and issues that businesses are likely to face. From covering the cargo being transported to covering the ships themselves and even providing special coverage for goods transported over land, there is a product that suits the purpose from Berjaya Sompo, an expert in marine insurance. This is because Berjaya Sompo is an expert in Marine Insurance, drawing on the Sompo Group’s extensive global expertise and many years of experience in the field. This allows Berjaya Sompo to provide exceptional marine insurance solutions backed by world-class knowledge and practices.
This is in keeping with the company’s vision statement – We Are Here With You – which highlights the company’s commitment to being the leading general insurer of choice, by providing the right solutions for individual and commercial needs. By adopting a more consultative approach, Berjaya Sompo’s teams learn what their clients’ needs are, so that they can propose a suitable and optimal solution that covers their clients’ requirements at a reasonable cost.
The company has also invested in technology to allow its staff and agents to efficiently manage the documents related to marine covers since the beginning of 2024. In addition, the upgraded system streamlines claim notifications. This will improve risk assessment, claims processing efficiency, and overall management of marine cargo insurance. By facilitating efficient claims notification, the system has the potential to further improve transparency and efficiency in the marine cargo insurance process.
For businesses that rely on transporting goods, whether domestically or internationally, Berjaya Sompo’s Marine Cargo Insurance covers such transportation via sea, air, or land against loss of (or damage caused) by a wide range of perils. Amongst others, these risks include fires or explosions; the vessel/craft being stranded, grounded, sunk or capsized; land vehicles having overturned or derailed; and the collision or contact of the transporting vessel, craft, or conveyance with an external object. Other risks covered include the discharge of cargo at a port of distress; natural disasters such as earthquakes, volcanic eruptions, or lightning; cargo being jettisoned or washed overboard; the loss of any package overboard or dropped whilst loading on to or unloading from vessel or craft; and costs incurred in relation to general average and salvage charges, sue & labour charges, pirates, thieves, and non-delivery, as well as contamination of cargo.
Ship owners and ship operators may opt to take up the Marine Hull Insurance, which covers against ship and machinery loss or damage, as well as indemnifying the ship owner against liabilities arising from maritime perils including perils of the sea such as heavy weather, stranding, or collisions.
Berjaya Sompo also provides the Goods In Transit policy, a special coverage that is specifically for goods being transported over land from one place to another. The scope of coverage is restricted to Fire, Theft, or Accidental Means, and is subject to express exclusions of the policy. Cover commences from the time the goods leave the warehouse premises, continues during the ordinary course of transit, and terminates upon delivery at destination. Temporary storage during the ordinary course oftransit and the process of loading and unloading is also covered.
As is standard practice within the industry, Berjaya Sompo’s portfolio of marine insurance products do specifically exclude deliberate or negligent conduct on the side of the Assured Party, as well as nuclear, biological, and chemical risks, war, as well as normal wear and tear, amongst others. The company makes available its product disclosure statements and policy wordings on its website, and welcomes businesses to contact its team to further discuss specific requirements so that an optimised plan can be tailored.
For more information and additional details regarding Berjaya Sompo’s marine insurance portfolio, go to https://www.berjayasompo.com.my/business-insurance/marine.
