Insuring Vehicles on RoRo Vessels: Why Underwriters Decline and How to Get Quoted

Most shippers assume that if you can insure a container of electronics, you can insure a car on a RoRo vessel. That assumption is wrong. Standard marine cargo underwriters routinely decline vehicle shipments on RoRo vessels, and the reasons have nothing to do with the value of the cargo. They have everything to do with the risk profile of the vessel type.

RoRo carriers have been involved in some of the most expensive total-loss casualties in recent marine insurance history. Open vehicle decks allow fires to spread rapidly. Stability issues from water ingress are acute because vehicles cannot be lashed like containerised cargo. And the rapid growth of electric vehicle shipments introduces battery fire risks that existing suppression systems were not designed to handle. If your broker has told you they cannot place RoRo vehicle cover, this guide explains why and what the alternative looks like.

Key Facts: RoRo Vehicle Cargo Insurance

Why do underwriters decline RoRo vehicle risks? RoRo vessels carry vehicles on open decks without the containment that shipping containers provide. Fires spread faster, stability risks are higher, and claim frequency for cosmetic and handling damage is elevated compared to containerised cargo. The total-loss profile of RoRo carriers is worse than general cargo vessels.

What does ICC (A) cover on a RoRo vessel? ICC (A) provides all-risks cover for the vehicle during transit, including fire, theft, collision, heavy weather damage, and total loss of the vessel. It does not cover mechanical or electrical breakdown, gradual deterioration, or damage caused by inherent vice (IUA/LMA clause text, 2009 edition).

What is the carrier's liability for vehicle damage on a RoRo vessel? Under the Hague-Visby Rules, the carrier's liability is capped at 666.67 SDR per package or 2 SDR per kilogram, whichever is higher (Hague-Visby Rules, Article IV.5(a)). For a vehicle worth $50,000, the carrier's maximum liability may be less than $5,000. Carrier liability does not come close to covering the vehicle's value.

Are electric vehicles harder to insure on RoRo vessels? Yes. EV battery fire risk is a growing concern for marine underwriters. Lithium-ion battery fires are difficult to suppress with standard ship sprinkler systems, and a single EV fire on an open vehicle deck can spread to hundreds of adjacent vehicles. Some underwriters apply EV-specific surcharges or exclusions.

Why Underwriters Decline: The Risk Profile

Underwriters assess RoRo vehicle risks differently from standard containerised cargo for specific, quantifiable reasons.

Fire spread on open decks. Vehicles on a RoRo vessel sit on open decks without the firebreak that container walls provide. If one vehicle catches fire, the flames spread laterally to adjacent vehicles. Major RoRo casualties have resulted in the total loss of entire vehicle cargoes. Allianz Global Corporate & Specialty has identified car carrier fires as a leading loss driver for the marine insurance industry.

Stability and capsize risk. RoRo vessels are susceptible to stability problems because of their wide beam and high centre of gravity. Vehicles shift during heavy weather if lashing is inadequate. Water ingress through vehicle access doors affects stability rapidly because the open decks lack the compartmentalisation of a container ship. Several high-profile capsizing incidents in the last decade involved RoRo or vehicle carrier vessels.

High handling damage frequency. Vehicles are driven on and off the vessel, creating exposure to scratches, dents, and mechanical damage during loading and discharge. For new vehicles, even minor cosmetic damage can trigger a claim. The claim frequency per shipment is higher than for containerised cargo.

EV battery risk. Electric vehicles shipped on RoRo vessels introduce thermal runaway risk from lithium-ion batteries. Standard water-based sprinkler systems on RoRo decks are not effective at suppressing lithium-ion battery fires, which require specialised agents or prolonged cooling. Some carriers are investing in enhanced suppression systems, but the fleet-wide retrofit is years away.

Concentration of value. A single RoRo vessel can carry 4,000 to 8,000 vehicles. A total loss represents hundreds of millions in cargo value. Underwriters who accept RoRo risks take on high-severity, low-frequency exposure that strains their aggregate limits.

What the Carrier's Liability Actually Covers

Vehicle shippers frequently assume the RoRo carrier will compensate them for damage. The reality is that carrier liability under the Hague-Visby Rules is both limited and defensive.

For a single vehicle weighing 1,500 kg and valued at $40,000, the Hague-Visby liability cap works out to roughly 3,000 SDR (2 SDR/kg x 1,500 kg), equivalent to approximately $4,000. That is 10% of the vehicle's value. The remaining 90% is uninsured unless the shipper holds their own marine cargo insurance.

The carrier also benefits from the full range of Article IV(2) defences: fire, perils of the sea, acts of God, nautical fault, and others. A vehicle destroyed in a RoRo fire where the fire originated in another vehicle's EV battery would likely fall under the fire defence, leaving the carrier with no liability at all.

The FMFF Standard Trading Conditions, where a Malaysian freight forwarder is involved in the booking, cap liability at RM2,800 per shipping unit or RM5.00 per kilogram, with an absolute ceiling of RM100,000. For a vehicle shipment, these limits are negligible compared to the cargo value.

How to Get Quoted: What Specialist Underwriters Need

Specialist marine cargo underwriters who accept RoRo vehicle risks need more information than a standard cargo insurance submission. The following data points improve the likelihood of placement and competitive terms:

Vehicle specification. Make, model, year, new or used, internal combustion or electric, and declared value per unit. EVs may attract additional underwriting questions about battery type, state of charge at shipment, and whether the vehicle has been pre-inspected for battery defects.

Carrier and vessel details. Which RoRo carrier, which vessel, which route. Underwriters assess the carrier's safety record, the vessel's age and classification, and whether the vessel has enhanced fire suppression for EV cargo.

Shipment volume and frequency. A one-off single vehicle shipment is underwritten differently from a monthly programme of 200 units. Volume programmes may qualify for an open cover arrangement with pre-agreed terms for each sailing.

Loading and lashing protocol. How the vehicles are secured on deck, whether the shipper or the carrier handles loading, and whether there is a pre-shipment inspection and photographic record.

Trade corridor. The route matters. Voyages through piracy-prone areas, areas with high port congestion, or routes transiting Joint War Committee listed areas require additional underwriting consideration. Malaysian exports of vehicles to the Middle East, Africa, or South America pass through different risk profiles.

Voyage places RoRo vehicle risks directly with the underwriters who write these risks. The automotive parts and components industry page covers Voyage's broader automotive cargo capability.

ICC (A) vs Total Loss Only: Choosing the Right Cover

Two common cover levels apply to RoRo vehicle shipments.

ICC (A) all-risks. Covers all risks of physical loss or damage except the named exclusions (delay, inherent vice, ordinary wear and tear, wilful misconduct of the assured, and others). This is the recommended cover for new vehicles, high-value vehicles, and any shipment where cosmetic damage triggers a claim. ICC (A) is the broadest standard cover available under the Institute Cargo Clauses (2009 edition).

Total loss only (TLO). Covers only the actual total loss of the vehicle, typically from sinking, fire resulting in total destruction, or the vessel becoming a constructive total loss. Does not cover partial damage, cosmetic damage, theft, or handling damage. TLO is the cheaper option and may be appropriate for lower-value used vehicles where the shipper is willing to accept partial loss risk.

For most commercial vehicle shipments from Malaysia, ICC (A) is the appropriate starting point. The premium difference between ICC (A) and TLO is modest relative to the coverage gap, subject to policy terms and conditions.

Frequently Asked Questions

Why do standard marine cargo underwriters decline RoRo vehicle risks?

RoRo vessels have a higher total-loss profile due to fire spread on open decks, stability risks, and EV battery concerns. Claim frequency for handling damage is also elevated. Standard underwriters may not have the appetite for these risks.

Does the RoRo carrier insure my vehicle during transit?

No. Carrier liability under the Hague-Visby Rules is capped at 666.67 SDR per package or 2 SDR per kilogram. For most vehicles, this is a fraction of the vehicle's value.

Are electric vehicles harder to insure on RoRo vessels?

Yes. Lithium-ion battery fire risk leads some underwriters to apply surcharges or additional conditions. The risk is real: standard ship sprinkler systems are not effective against battery fires.

What is the difference between ICC (A) and total loss only cover for vehicles?

ICC (A) covers all risks of physical loss or damage except named exclusions. TLO covers only actual total loss. ICC (A) is recommended for new or high-value vehicles.

Can I insure a single vehicle shipment or do I need an annual programme?

Both are available. Single shipment policies and open cover arrangements serve different needs. Regular shippers benefit from open cover for consistent terms and faster processing.

What documentation do I need for a RoRo vehicle insurance claim?

Pre-shipment photographs, bill of lading, claused delivery receipt, survey report, and carrier correspondence. The condition record before and after transit is the foundation of any claim.

Close the RoRo Gap with Voyage

Voyage is a specialist marine insurance intermediary that places cargo risks other intermediaries cannot. RoRo vehicle shipments, whether new cars, used vehicles, construction equipment, or EVs, require specialist underwriting that most standard marine cargo programmes do not offer. Voyage places directly with the underwriters who write RoRo risks, skipping the standard-market decline and getting straight to the quote.

Get a tailored quote. WhatsApp Kevin at +60 19 990 2450 or request a callback. Quotes turn around in 24-48 hours where the underlying cover is in place.

Disclaimer: This article provides general guidance on insuring vehicles on RoRo vessels as of June 2026. Coverage terms, conditions, and availability vary by insurer, policy, and jurisdiction. Always review your specific policy wording and consult a qualified insurance professional before making coverage decisions.