Understanding Marine Cargo insurance claim process
When a consignee arrives to take delivery of the goods and upon noting that there is damage or loss, it is quite certain that the consignee will file a notice of protest or intention of claim against various parties, including the carrier (House Bill of Lading). This notification is the correct procedure expected of the consignee if there is a cargo insurance policy covering the goods.
The Carrier in response to such notification would usually deny any liability and at the same time suggest that the consignee files its claim against the cargo insurer. If the carrier is aware of what is expected of the consignee under the cargo insurance claim process and able to provide appropriate suggestion, the consignee would likely pursue the claim under the cargo policy, which is usually a simpler and quicker process. The carrier will then be left to deal with the cargo insurer under subrogation right at a later stage.
Understanding of the following marine cargo insurance claim process would help in handling the consignees. The various issues to observe are:
In the event of loss or damage, the insured or its agent/representative has a duty to take such measures so as to minimize or avert the loss or damage.
Where another party is responsible (e.g. the carrier, warehouse operator or transport operator), the Insured or its agent/representative must ensure that all rights against such party is properly preserved and exercised.
The following are the important steps to be observed:
- To claim immediately on the Carriers, Port Authorities or other Bailees (e.g. warehouse or transport operator) for any missing goods.
- In no circumstances, except under written protest, to give clean receipts where goods are in doubtful condition.
- For containerized shipment, to ensure that the responsible official examines the Container and its seals immediately. If the container is delivered damaged or with seals broken or missing or with seals other than as stated in the shipping documents, to clause the delivery receipt accordingly and retain all defective or irregular seals for subsequent identification.
- To apply immediately for survey by Carrier's or other Bailees' representatives if any loss or damage be apparent and claim on the Carriers or other Bailees for any actual loss or damage found at such survey.
- To give notice in writing to the Carriers or other Bailees within 3 days of delivery if the loss or damage was not apparent at the time of taking delivery.
Note - The consignees or their Agents are recommended to make themselves familiar with the Regulations of the Port Authorities at the port of discharge.
Each cargo insurance policy or certificate will contain details of the company to contact for arrangement of a survey in the event of damage or apparent damage of the goods on arrival at destination. Following is the policy term relating to this survey requirement:
In the event of loss or damage which may involve a claim under this insurance, immediate notice should be given to and a Survey Report obtained from the Company's Survey Agents shown in the Policy or Certificate of Insurance issued, or if there be no Survey Agents, then the nearest Lloyd's Agents.
Claims documents: To submit a claim against the cargo insurer the following documents must be provided:
- Original policy or certificate of insurance.
- Original or copy shipping invoice, together with shipping specification and/or weight notes.
- Original Bill of Lading and/or other contract of carriage.
- Survey report or other documentary evidence to show the extent of loss or damage.
- Landing account and weight notes at final destination.
- Correspondence exchanged with the Carriers and other parties regarding their liability for loss or damage.
- A statement of claims amount and any other documents as required by insurer
The company to whom such claim documents are to be submitted is stated in the policy. Early submission will result in early conclusion of the claim by insurer.
Note: This article in not intended to convey scope of policy cover. The case as narrated was determined according to the particular policy involved .
|
