CLAIM PROCEDURE FOR MARINE

Marine claims can arise at any given location at any time during the course of transit. In such a case it is difficult to contact the policy issuing office immediately & immediate survey is almost always needed. Thus in the case of a marine loss the insured can get a surveyor deputed from the nearest office immediately in case of a domestic transit loss. In case of transit loss in an overseas consignment the settling agent of the insurance company as mentioned on the face of the certificate should be contacted for assessing & settling the loss there & then.

STEPS SHOULD BE TAKEN IN EVENT OF LOSS OR DAMAGE

  • Take immediate steps to minimize loss.

  • Inform nearest office of the insurance company or claim settling agent mentioned on the policy.

  • In case of damage to goods whilst on ship or port, arrange for joint ship survey or port survey.

  • In case of Declaration Policy - the consignment should be declared within the limit of balance sum insured.

  • In case of loss / damage in transit, a monetary claim should be lodged with the carrier within the time limit to protect recovery rights.

  • Damage / Shortage Certificate from the carrier.

  • In case any damage is suspected in transit, open delivery should be insisted upon the carrier and their certificate should be obtained.

  • Submit duly assigned insurance policy / certificate along with the original invoice and other documents required to substantiate the claim such as:
    - Bill of Lading / AWB / GR
    - Packing list
    - Copies of correspondence exchanged with carriers.
    - Copy of notice served on carriers along with acknowledgment / receipt.
    - Shortage / damage Certificate issued by carriers.

  • Survey fee is to be paid to the surveyor appointed by the insurance company. This fee will be reimbursed along with the claim if the claim is otherwise admissible.

DOCUMENT OF THE TITLE

Are documents which give ownership to cargo. Major documents of title are policy, contract of affreightment and invoice.

Original Policy

Marine can have single or several policies, all of which should be submitted for claim. Since it is freely assignable, details are checked.

Contract of Affreightment

This would include Lorry receipt, bill of lading, railway receipt and airway bill.
A clean Contract of Affreightment is necessary for hassle - free claim settlement and endorsed contract of affreightment would serve as a proof if cargo were damaged at inception.

Invoice

Is used to check the Sum Insured taken under the policy. This reflects the true value of cargo.

Packing List

Missing items and valuation has to be arrived at by checking with the packing list.

Survey Report

This has two major aspects, namely identifying the cause and quantifying the amount of loss.

LETTER OF INDEMNITY

When the insured is not able to provide the original policy, the letter of indemnity comes into play.

Claim Form

This form gives the basic details about a policy.

Claim Bill

Expenses incurred to reduce loss is claimed here.

Letter Of Subrogation

This is a main recovery document. It is issued before the recovery document is issued.

Eg: If the railways fail to discharge cargo at the destination, a claim has to be made against the Chief Commercial Superintendent within the statutory time limit, failing which the rights of recovery against the railways will not be preserved.