China to Malaysia Shipping Insurance Guide
Newfly Cargo Insurance & Claims Policy
Shipping insurance is not purchased because problems are expected. It is there to protect you when the unexpected happens.
One of the most common questions we receive from customers is:
''Do I really need shipping insurance?''
Our answer has always been straightforward.
If the cargo has a relatively low value and you are comfortable accepting the transportation risk, additional insurance may not be necessary.
However, if your shipment is valuable, commercially important, or contains goods that would be costly to replace, purchasing cargo insurance is highly recommended.
At Newfly, we do not believe every shipment must be insured.
Instead, we encourage customers to understand exactly what is covered, what is excluded, and how the claims process works before making a decision.
Clear expectations before shipment help prevent misunderstandings if an incident ever occurs.
Why Is There Risk in International Shipping?
Moving cargo from China to Malaysia involves far more than simply loading goods onto a vessel.
Every shipment passes through multiple stages before reaching its final destination.
Depending on the service selected, the cargo may be collected directly from the supplier, delivered to a Newfly warehouse for inspection, photographed, measured, weighed, professionally packed, reinforced with wooden crating where required, cleared for export, loaded into containers, transported by sea, cleared through Malaysian Customs, and finally delivered to the consignee.
Throughout this process, every reasonable effort is made to protect your cargo.
However, international freight transportation is a complex logistics operation involving ports, warehouses, vessels, handling equipment, customs authorities and multiple transportation providers.
Some operational risks simply cannot be eliminated entirely.
For this reason, cargo insurance is widely recommended throughout the international logistics industry, particularly for valuable shipments.
Insurance is not an indication that problems are expected.
It is a financial safeguard against unexpected transportation incidents.
Newfly’s Insurance Philosophy
Our approach is simple.
Cargo insurance protects against transportation risks. It does not serve as a product warranty.
Many customers mistakenly assume that cargo insurance also covers manufacturing defects or product quality issues.
These are two completely different matters.
For example, cargo insurance does not cover:
Cargo insurance only applies to losses or damage that occur during the transportation process and fall within the scope of the applicable insurance policy.
This is the standard practice adopted throughout the international freight forwarding industry.
Complimentary Basic Transit Protection
Every shipment transported by Newfly automatically includes complimentary basic transit protection without any additional insurance premium.
If a shipment is confirmed to have been completely lost during transportation and the loss is determined to be within Newfly’s transportation responsibility, compensation will be provided as follows:
This complimentary protection applies only to confirmed cargo loss.
Freight charges already paid are non-refundable.
What Is Not Covered Under the Complimentary Protection?
It is important to understand that basic transit protection does not cover every type of transportation incident.
International sea freight involves multiple handling stages, including loading, unloading, container stacking and long-distance ocean transportation.
Minor packaging wear resulting from normal transportation conditions should be expected.
The complimentary protection does not cover:
For example, if a supplier ships a glass tabletop in a standard cardboard carton without proper wooden protection, and the glass breaks during international transportation, the damage cannot automatically be considered a transportation liability.
The packaging itself must be suitable for international freight.
For this reason, Newfly strongly recommends appropriate protective packaging for fragile or high-value cargo before shipment.
Cargo insurance reduces transportation risk.
It does not replace proper export packaging.
Insurance Plan 1
Cargo Loss Insurance
For shipments with relatively high commercial value that are not particularly fragile, Cargo Loss Insurance is the most commonly selected option.
It is suitable for shipments such as:
This policy is specifically designed to protect against the financial risk of cargo being completely lost during transportation.
Insurance Premium
The premium is calculated at 5% of the declared cargo value.
For example:
Declared cargo value: RM10,000
Insurance premium: RM500
Premiums are calculated based on the value declared by the customer.
Customers are therefore advised to declare the true commercial value of their goods.
Under-declaring cargo value to reduce the insurance premium may result in lower compensation if a claim is approved.
What Does Cargo Loss Insurance Cover?
If the shipment is confirmed to have been completely lost during transportation as a result of an insured event, compensation of up to 100% of the declared cargo value may be approved, subject to investigation and policy terms.
Covered events include, but are not limited to:
Every claim is subject to investigation and final approval.
Insurance coverage is determined based on the actual circumstances of each incident and the applicable policy conditions.
What Is Not Covered Under Insurance Plan 1?
Cargo Loss Insurance is designed to protect against cargo loss only.
It does not provide protection against cargo damage.
If the shipment is delivered but the goods are damaged, Insurance Plan 1 does not apply.
In simple terms:
Loss is covered. Damage is not.
Customers who require protection against accidental transportation damage should consider Newfly’s comprehensive Cargo Loss & Damage Insurance, which will be explained in the next section.
Based in Kuala Lumpur, Malaysia, NEWFLY CARGO & DIGITAL TRADING SDN. BHD. has been providing reliable sea and air freight services between China and Malaysia since 2019. We are committed to delivering high-quality transport solutions tailored to your needs.
Posted by NEWFLY CARGO & DIGITAL TRADING SDN. BHD. on 8 Jul 26
Malaysia
