Marine Hull and Machinery, Boat, Yacht and Pleasure Craft Insurance Malaysia
Insurance Coverage for Vessels
Water based vessels such as Ships, Boats, Yachts and Pleasure Crafts have different types of insurance coverage and requirements. Insurance for Ships is the Marine Hull Insurance. Insurance for Boats, Yachts and Pleasure Craft are covered by Boats and Pleasure Craft Insurance.
Hull and Boat Insurance in Malaysia
Like land transport vehicles such as cars and trucks, all water transport vessels registered in Malaysia need to have insurance issued in Malaysia. There are several reliable insurance companies (AIA Insurance, RHB Insurance, Liberty Insurance, AXA or Takaful Ikhlas) that provide these types of insurance policies in Malaysia.
Marine Hull Insurance vs Boat and Pleasure Craft Insurance
These insurance policies differ in the types of risks covered based on the vessel use cases.
Marine Hull Insurance or Hull and Machinery (H&M) Insurance
Marine Hull Insurance, also known as Hull and Machinery (H&M) Insurance, provides coverage for damage to commercial vessels. The insurance coverage is for commercial vessels such as cargo and fishing ships, barges and vessels. This insurance covers risks to vessel hull and machinery only.
Liability insurance coverage to crew, cargo and property are provided by separate insurance policies or add-ons, depending on the boat or marine insurance company.
Boat and Pleasure Craft Insurance
Boat and Pleasure Craft Insurance provides coverage for recreational sailors. The insurance coverage is for recreational or charter use of boats and yachts. This insurance covers resulting risks of vessel hull damages plus liability insurance for property damage and passengers. We will cover this in detail in Boat Insurance coverage section below.
Marine Hull Insurance (H&M Insurance) Coverage
This insurance plan, also known as Hull and Machinery (H&M) Insurance, is to cover damages to the vessel hull and its machinery. This coverage applies when the vessel is in operation and damages occur to the vessel while it is operating.
The coverage is based on Institute Time Clauses that specify what are covered in the event of a damage or loss to the vessel and its machinery. Any type of water based vessel engaged in commercial activities can apply for this insurance.
Types of Damages Covered by Marine Hull Insurance
This insurance plan covers partial loss and total loss of vessel insured. If you select “Institute Time Clause Hulls”, then you get coverage for partial and also total loss of vessel insured. If you select “Institute Time Clause Hulls Total Loss Only”, then only total loss is covered. Damages can be from water based perils, fire, piracy, collision with port and its equipment.
These damages covered are however dependent on the fine print of the insurance policy and you need an independent marine hull insurance agent to advise you accordingly.
Boat, Yacht and Pleasure Craft Insurance Coverage
This insurance plan covers a wider variety of risks of ownership of a boat in Malaysia. This insurance plans offers coverage not only to the vessel hull and machinery, but also to the boat trailer, masts and rigging too. This insurance plans covers a wide variety of yachts, pleasure crafts, sail boats and sports boats in Malaysia.
You can have additional options for personal accident coverage, water sports risks, port damages, water pollution and boat passenger liability coverage too. You can have a very comprehensive level of coverage for your boat or yacht, according to your affordability and needs.
Types of Damages Covered by Boat, Yacht and Pleasure Craft Insurance
This insurance plan covers a wider variety of damages and also liabilities too. This is damages that can result in partial loss and total loss of vessel insured. Damages to the environment, harbour, other vessels, watersports equipment, sports fishing gear and passengers on board are covered too.
Damages can be from water based perils, fire, piracy, collision with other boats, collision with the port and its equipment and land accidents during transportation.
These damages covered are however dependent on the fine print of the insurance policy and you need an independent marine and boat insurance agent to advise you accordingly.
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