Is there a minimum cargo value to qualify for insurance?

There is no formal minimum value requirement. However, for goods worth less than IDR 5 million, the cost of the premium relative to the potential claim amount may make insurance less efficient. For shipments exceeding IDR 50 million, cargo insurance is strongly advisable.

How do I determine the correct sum insured?

The sum insured is typically calculated as the CIF (Cost + Insurance + Freight) value of the goods, plus 10% as an allowance for anticipated profit. Avoid under-insuring — in the event of a claim, any shortfall will be applied proportionally and the payout will be reduced accordingly.

What is a deductible in a cargo policy?

A deductible (also called an excess) is the portion of any loss that the insured bears before the insurance pays out. For example, if the deductible is IDR 1 million and the loss is IDR 10 million, the insurer pays IDR 9 million. Choosing a higher deductible will lower your premium.

Can I get a lower premium if I have a good claims record?

Yes. Policyholders with a low loss ratio (few or no claims) typically receive a discount or no-claim reduction at renewal. This is one of the key advantages of an annual open cover policy over per-voyage arrangements.

Premium Guide

How Much Is Marine Cargo
Insurance in Batam?

Marine cargo insurance does not have a single fixed rate — the premium depends on multiple factors specific to your shipment. Learn how the calculation works, what drives the cost, and how to get the best value for your coverage.

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Premium Formula

How Marine Cargo Premium Is Calculated

Basic Formula

Premium = Sum Insured × Rate (%)

Sum Insured = CIF value of goods + 10% (anticipated profit allowance)

Example Calculation:

Cargo value (CIF)IDR 500,000,000

Sum Insured (CIF + 10%)IDR 550,000,000

Rate – ICC (B), domestic route~0.15% – 0.25%

Estimated PremiumIDR 825,000 – IDR 1,375,000

*Rates are for illustration only. Actual rates are determined by the underwriter based on commodity type, route, and ICC clause selected.

Rating Factors

What Drives Your Cargo Premium

Declared Cargo Value (Sum Insured)

The higher the declared value, the larger the absolute premium — even if the percentage rate remains the same.

Commodity Type & Condition

Fragile goods, liquids, or chemicals carry a higher rate than steel or construction materials due to their elevated risk profile.

Route & Distance

Domestic routes like Batam–Jakarta are rated differently from international routes such as Batam–Singapore or Batam–Port Klang.

ICC Clause Selected

ICC (A) carries the highest premium due to its broadest coverage. ICC (C) is the most affordable but offers the most limited protection.

Packaging & Loading Method

FCL (Full Container Load) shipments attract lower rates than LCL or break-bulk, as the damage risk is better contained.

Claims History

Insureds with minimal past claims receive better rates at renewal — a key advantage of maintaining an annual open cover relationship.

Per-Voyage vs Open Cover

Choose the Right Policy Type for Your Business

Per-Voyage Policy

For single or infrequent shipments
Premium paid per individual shipment
No periodic reporting required
Ideal for SMEs or first-time shippers
Flexible — no annual commitment

Open Cover Policy (Annual)

For shippers with regular monthly volumes
One policy covers all shipments for the year
Each voyage declared; certificate issued per shipment
More cost-efficient per shipment at scale
Potential no-claim discount at renewal

FAQ

Marine Cargo Premium – Common Questions

Both options are available. An open cover policy (annual) suits exporters or distributors making regular shipments — the premium is paid upfront and each shipment is declared to obtain a certificate. A per-voyage policy is better suited for one-off or infrequent shipments.

Get Your Marine Cargo Premium Calculated

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How Much Is Marine CargoInsurance in Batam?