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Boat Insurance

Most boat owners will look for an insurance company that knows about boat coverage and can provide quality service as well as support after buying a boat. Accidents or loss of your boat can happen at any time or place without warning. To be able to get back some form of compensation from your insurance coverage will offer some comfort.

There is, however, no right answer when someone asks which boat insurance company is the best as every insurance broker will say his is the best in town.


In Malaysia, yacht or boat insurance is a very small segment of the insurance industry. Not many insurance companies are interested to take coverage except for a few that specialise in such coverage for the various types of boat available in the market.

Taking boat insurance coverage is important but you must know what you want to cover and not look at how much you want to save if you do not cover this or that item.

You need to understand the different coverages in order to select the insurance policy that best suits your needs and your boat.

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Type of Coverage

Here are some basic but important areas you need to cover should things go wrong in order to protect yourself and your investment in the boat.

Third Party Liability

Covers in respect of legal liability arising out of an accident which gives rise to claims for:

-Bodily injury to or death.
-Loss of or damage to any vessel or property.
-Cost in attempting to or actual raising, removal of the wreck of the vessel or any failure to recover.

Personal Accident

Covers personal accident to the owner and any extended person (passenger) on death and permanent disablement as result of death and/or bodily injury caused directly by violent, accidental and external visible sustained while embarking, disembarking and on board of the vessel.

Hull and Machinery

Covers physical loss of or damage to the vessel (hull, machinery, masts, spars, rigging and sails) caused by:

-Fire and explosion.
-Jettison, malicious acts and negligence.
-Theft of vessel, outboard motor, boats or any trailer if insured.
-Perils of the sea, piracy, earthquake, volcanic eruption or lightning and latent defect.

Personal effects

Covers against direct physical loss or damage to personal belongings while the property is aboard or being loaded onto the vessel. Applicable only to vessels with lockable accommodation.


Boat owners who require other personalised coverage need to negotiate with the insurance companies which may accept specialist coverage on case-by-case basis.

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