Handling A Marine Insurance Claim For Loss/Damage to Cargo
Marine insurance is essentially for transit or movement of goods by ocean-going vessels and a contract of marine insurance is an agreement whereby the insurer undertakes to indemnify the assured in the manner and to the extent agreed against marine losses and a substantial number of claims are made for the loss of or damage to the cargo. Thus one must keep in mind certain aspects of the matters involved in making an insurance claim of this nature.
It is very important to launch an inspection of the cargo for loss or damage on the arrival of the vessel, otherwise it might create complications in the form of giving a potential ground for suspicion on the part of the insurer that the loss or damage has been caused by the insured himself leading to some extra efforts to be be put in to disprove it. An inspection should cover the external surface of the vessel, the roof door seals and rusty spots for water leakage.
It is advisable not to give a clean receipt to the delivery carrier unless one is absolutely satisfied that cargo is in a perfect condition. Comments like “ Received in apparent good order and condition” can prove very handy in these ticklish situations. It would be quite imprudent to accept the plea of the carrier that the cargo was received in a damaged condition or something like that.
It is also necessary to serve notice to all transport operators or/and third parties when one is faced with a potential loss or claim. One must not delay engagement of a surveyor whose report is very vital in the process of claim settlement. Any delay in doing this can prove to be fatal and prejudice the insurance claim.
The insured has a duty to take all steps to avoid or minimize any further physical or financial loss as it is important to understand that the cargo still remains the property of the insured and does not pass into the hands of the insurer unless there is an express agreement.
A claim form is dully filled in which is accompanied by the documents viz., Bill of Lading/Airway Bill, Commercial Invoice, Insurance Certificate, Copy of Notice of Claim reported against the carrier or third parties, Local Carriers Waybill, Copy of temperature records, wherever applicable, Invoices to confirm salvage/sale price, wherever applicable, Copy of instruction to carriers regarding carriage temperature, wherever applicable.
It is also important to note that the successful settlement of a marine insurance claim requires evidence of physical damage to cargo and complete documentation. When all the documents are submitted the surveyor reports in full to the insurance company or their their overseas settlement agents.
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