Part 4 | Frequently Asked Questions (FAQ), Legal Notice & Our Commitment
Frequently Asked Questions (FAQ)
These are some of the questions we receive most often from our customers.
Whether you are importing from China for the first time or managing regular commercial shipments, understanding how cargo insurance works can help you avoid unnecessary misunderstandings and make better shipping decisions.
Q1. Is cargo insurance compulsory?
No.
Cargo insurance is an optional service.
Customers may decide whether to purchase insurance based on the value of their shipment and the level of risk they are prepared to accept.
For low-value cargo, some customers choose to rely on the standard shipping protection.
For high-value goods, commercial shipments or products that would be costly to replace, purchasing cargo insurance is strongly recommended.
Q2. What if I do not purchase cargo insurance?
All eligible shipments transported by Newfly are covered by our Basic Shipping Protection.
If a shipment is confirmed to have been completely lost during transportation and falls within our shipping responsibility, compensation may be provided according to the Basic Shipping Protection terms.
Please note that Basic Shipping Protection only covers cargo loss.
It does not cover cargo damage, deformation, scratches, dents or other physical damage.
Q3. Why doesn’t the 5% Cargo Loss Insurance cover damaged cargo?
The 5% Cargo Loss Insurance is designed to protect against total cargo loss, not physical damage.
Its purpose is to compensate customers if an entire shipment or package is confirmed to be lost during transportation due to an insured event.
If the shipment is successfully delivered but arrives with damage, the claim does not fall under this insurance plan.
Customers who require protection against both cargo loss and transportation damage should consider the Comprehensive Cargo Insurance plan.
Q4. Why is wooden crating required for insured cargo?
Proper packaging is one of the most important conditions of cargo insurance.
Wooden crating significantly reduces the risk of damage caused by stacking pressure, cargo movement, loading equipment and long-distance transportation.
For certain cargo types, especially fragile or high-value goods, wooden crating is a mandatory requirement before insurance coverage can be approved.
Insurance is intended to protect against unforeseen transportation risks.
It cannot replace inadequate packaging.
Q5. Why must the warehouse inspect my cargo before shipment?
Warehouse inspection creates an official record of the cargo’s condition before transportation begins.
This helps confirm that the goods were received in acceptable condition and allows Newfly to recommend additional packaging if necessary.
Inspection records also help distinguish between supplier-related issues and transportation-related damage should a claim arise later.
Q6. If the supplier ships a defective product, is it covered by cargo insurance?
No.
Cargo insurance only covers losses or damage that occur during transportation.
Manufacturing defects, supplier mistakes, missing components, quality issues or product malfunctions are not considered transportation risks and are therefore not covered.
For valuable products, we strongly recommend warehouse inspection before shipment.
Identifying problems before export is often much easier than resolving them after arrival.
Q7. If the carton is damaged, does it mean the product is damaged?
Not necessarily.
In some cases, the outer packaging may show signs of compression while the product inside remains completely intact.
Conversely, a package may appear undamaged externally while internal components have been affected.
Every claim is assessed based on the actual condition of the cargo together with supporting evidence and investigation findings.
Q8. Why is an unedited unboxing video required?
An unedited video provides the clearest evidence of the shipment’s condition at the time of delivery.
It should clearly show:
Compared with photographs alone, a continuous video provides a more reliable record during claim assessment.
Q9. Can I submit a claim several days after delivery?
Generally, no.
All insured shipments must be inspected immediately after delivery.
If a claim falls within the insurance coverage, Newfly must be notified within 24 hours after the shipment has been signed for.
Claims reported after this period may not be accepted because the transportation responsibility can no longer be reasonably verified.
Q10. Why does every insurance claim require an investigation?
Insurance claims are never approved solely because damage is reported.
Every claim must be reviewed to determine:
Only after the investigation has been completed can the claim proceed to assessment.
Q11. Will insurance compensate the full value of the product if only part of it is damaged?
Not necessarily.
Cargo insurance follows the principle of actual loss.
If only part of an item is damaged, compensation is generally assessed based on the reasonable repair, replacement or restoration cost of the damaged component.
For example:
If a mobile phone arrives with a cracked display while the rest of the device functions normally, the claim will generally be assessed based on the reasonable cost of replacing the screen rather than the value of a new phone.
Similarly, if only one glass panel of a cabinet is damaged, compensation will normally be based on replacing that panel instead of replacing the entire cabinet.
Q12. Which items are generally not accepted for insurance?
Due to their extremely high transportation risk, certain products are generally not accepted for cargo insurance.
These include, but are not limited to:
Transportation may still be arranged subject to operational acceptance.
However, these items are normally transported entirely at the customer’s own risk.
Q13. How long does the claim assessment process take?
Every insurance claim requires document verification and transportation investigation.
The assessment period begins from the last transportation status shown in the shipment tracking system, not from the date the customer submits the claim.
Under normal circumstances, the investigation and assessment process takes approximately 14 business days.
If additional documents are required or the case involves shipping lines, ports, customs authorities or third-party logistics providers, the assessment period may take longer.
Newfly will keep customers informed throughout the investigation process.
Our Commitment
Cargo insurance is important.
However, preventing problems before a shipment leaves China is even more important.
At Newfly, we believe that effective logistics is not simply about handling claims after something goes wrong.
It starts with careful warehouse receiving, cargo inspection, accurate documentation, proper packaging and recommending wooden crating whenever additional protection is needed.
Every preventive step taken before export helps reduce transportation risks and gives customers greater confidence throughout the shipping journey.
Our goal has always been simple:
To deliver every shipment safely, efficiently and with complete transparency.
Legal Notice
This document is provided as a general guide to Newfly’s cargo insurance and claims procedures for shipments from China to Malaysia.
All insurance applications, claim assessments and compensation decisions are subject to Newfly’s latest Shipping Terms & Conditions, insurance requirements and investigation results.
Cargo insurance protects against covered transportation risks only.
It is not a product warranty, manufacturer guarantee or after-sales service.
Newfly reserves the right to request supporting documents, including but not limited to purchase invoices, commercial invoices, proof of value, inspection records, photographs, unedited unboxing videos and any other information necessary for claim assessment.
Any false declaration, under-declaration of cargo value, inaccurate cargo description, prohibited goods, restricted items or fraudulent documentation may result in the immediate cancellation of insurance coverage and rejection of any claim.
Newfly reserves the right to revise, amend or update this policy from time to time without prior notice to reflect changes in transportation practices, insurance requirements or applicable regulations.
In the event of any dispute regarding insurance coverage or claims assessment, Newfly’s latest published Shipping Terms & Conditions shall prevail.
Thank You
Thank you for taking the time to read this Shipping Insurance Guide.
We sincerely hope you will never need to make an insurance claim.
Our priority has always been to help every shipment arrive safely through proper handling, careful packaging and responsible transportation management.
Cargo insurance is there for unexpected situations.
Good logistics is about doing everything possible to prevent those situations from happening in the first place.
Malaysia
