A Businessman’s Guide to Marine Cargo Insurance in the Philippines

Businesses that regularly transport goods through sea cargo shipping are at great risk of potential perils during transit, such as theft, water entry damage, physical loss, or even natural disasters. To remedy the losses or damage that may occur, it is always advisable to get cargo insurance in the Philippines, which can be availed from various providers. This way, your goods, business operations, and finances are safeguarded from severe effects.

This article discusses the various marine cargo insurance types, policies, and coverage, as well as the business benefits of obtaining protection for your goods.

Your Comprehensive Guide to Marine Cargo Insurance in the Philippines

What is Marine Cargo Insurance?

Marine cargo insurance is designed to cover physical loss or damage to goods at any point in transit. It protects the value of goods against potential harm or risks that may occur during the transport process, such as:

  • Theft or Robbery/Hijacking
  • Fires and explosions
  • Earthquakes
  • Volcanic eruptions
  • Sinking, grounding, collisions
  • Discharge at a port of distress
  • Sea, lake, or river water entry into the ship’s hold or storage
  • Total loss during unloading

Cargo insurance in the Philippines can come in different policy structures and coverage clauses, such as open policy, individual or voyage policy, all-risk coverage, contingency coverage, or specialized coverage.

5 Common Types of Marine Cargo Insurance Policies

1. Marine Open Policy

This is also known as ‘open cover’, which means it automatically protects all shipments that will be made throughout the policy period. At the start of the policy period, the Assured does not have the specific details of the shipments to be made. Instead, they must disclose all necessary details and declare each new shipment shortly before the voyage takes place, during which they must also pay the premiums. This blanket cargo insurance in the Philippines is ideal for business owners that make frequent shipments.

2. Inland Marine Policy

This type of cargo insurance in the Philippines covers commodities that are being transported by trucks or overland means, and may be stored at a third party warehouse. It is distinct from ‘marine insurance’ as it exclusively covers goods in transit on land, however, it is highly recommended to get this policy along with a sea-based coverage.

Businesses that use RoRo ferries (via trucks, utility vans, buses) can benefit from inland and marine insurance, protecting goods from risks that may arise in either mode of transport.

3. Inter-Island Policy

Inter-island marine cargo insurance policies in the Philippines cover goods that are moved using vessels making inter-island trips within the country. It can also be extended to cover warehouse to warehouse transit. This ability can further broaden the scope of protection for your items.

The Institute Cargo Clauses (ICC) are three types of insurance clauses that can be written, as agreed upon by the Assured and the Insurer.

  • ICCA – An All Risks form of coverage, which covers all perils that arise from an accident or non-inevitable loss, such as physical loss or damage.
  • ICCB – Covers certain perils like explosions, fires, damage or accident to vessels at sea (capsizing, sinking, collision), and water damage to cargo.
  • ICCC – The most basic or limited coverage, which only specifies fewer and more particular perils at sea compared to type B.

4. Import Policy

Import policy provides protection for goods brought into the Philippines via ocean freight transport. Insurance premiums are typically calculated according to the type of goods, their value, and the coverage chosen by the Assured. It is ideal for business owners that make frequent imports or conduct regular international voyages. 

5.Export Policy

Export policy covers all goods sent outside of the country through international ocean freight. Similar to import policy, the coverage type, export marine cargo insurance in the Philippines considers the nature and valuation of cargo as the key determining factors for the premium. This is recommended for businesses that regularly engage in international export activities.

Advantages of Getting Marine Cargo Insurance in the Philippines

  • Indemnity and financial security

Marine cargo insurance is primarily designed to protect a business from the financial burden of accidental loss or damage to cargo in transit. It also safeguards goods against various perils or risks of transport that may lead to total or partial loss over the course of a voyage. By providing compensation for harmed goods, businesses can recover from damage thanks to the agreed value as written in the policy.

  • Comprehensive and customizable coverage

Policies such as the Marine Open Policy provide blanket coverage for all shipments to be made within the agreed period. This ensures that all declared voyages are guaranteed compensation. It also eliminates the hassle of availing individual marine cargo insurance products for separate voyages.

  • Enhanced business image

Availing marine cargo insurance in the Philippines is not mandatory, but it is a smart business move to obtain one. It exhibits a business owner’s commitment to providing a secure cushion to potential risks of marine transport. This proves to your clients and partners that you value the complete safety of your goods and customer satisfaction.

  • Domestic regulatory compliance

By insuring various goods, businesses stay compliant with domestic shipping regulations, minimizing the risk of getting fined, legal issues, or disruptions in delivery that may arise from the mentioned scenarios. This also strengthens relationships between suppliers and their clients. 

Where to Get Cargo Insurance in the Philippines

Trans-Asia Shipping Lines, Inc. provides automatic cargo insurance in the Philippines. All cargo is insured to a certain degree; however, if you intend to increase the declared value, this can be covered for you at a minimal charge.

TASLI also offers the best declared value in the market. They understand how important the valuation of cargo is, and give clients peace of mind when shipping all kinds of goods. In case of any occurrence involving your cargo, you can immediately reach TASLI’s dedicated customer service staff. 

NOTE: For passenger (RoRo) services, Trans-Asia also complies with the mandatory passenger insurance coverage, ensuring each passenger is protected throughout the journey.

Diverse types of cargo insurance in the Philippines are also available at most insurance companies, ranging from Marine Cargo, Marine Hull, Inland, Inter-Island Marine Cargo, Open Policy, and Import/Export coverage. Below are a few of the entities offering such products.

At the end of the day, a reliable shipping company is truly committed to safeguarding cargo, providing top-notch security for your items. Coupling this with comprehensive cargo insurance in the Philippines ensures that your goods, business, and finances are protected against unforeseen events.

ALSO READ: RoRo vs Container Shipping in the Philippines: 6 Key Differences You Need to Know

Trans-Asia Shipping Lines provides safe and dependable cargo shipping in the Philippines. We offer basic coverage for your cargo items, whether for long or short haul. Our freighter routes deliver to Manila, Cebu, Davao, Cagayan de Oro, General Santos, Zamboanga, and more. View our cargo rates here and connect with us today to start shipping.