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Deterioration of Stock

Spoilage of goods in cold storage following a breakdown of the refrigeration plant or a failure of power.

Also calledDeterioration of Stock in Cold Storage · DOS

File/Claims library/Property and engineering/Breakdown and machinery

First thing, todayRecord temperatures continuously from the moment of failure, and do not dispose of the stock before survey.

Three deadlines
  • Tell the insurer now, not after the assessment.
  • Leave the machine as it stopped and tell the manufacturer or the AMC before anything is opened up.
  • Every document within the time the insurer asks for it.
A machine stopped with a sheared gear
A machine stopped with a sheared gear. An illustration.

When you would claim

  • Refrigeration plant breakdown causing a temperature rise
  • Power failure beyond the deductible period
  • Escape of refrigerant contaminating stock

What insurers most often rely on

  • No continuous temperature record, so the extent cannot be proven
  • Stock disposed of before survey
  • The plant breakdown itself not covered, which breaks the chain
  • Power failure shorter than the time excess in the wording

Every one of those is answerable, and several are decided by what was done in the first two days rather than by anything argued later.

The documents

most of it exists already

10 items, and most of them exist somewhere in your own office already. Assemble them once and properly; a file sent in pieces takes three times as long to settle.

  • Claim form and the cold storage stock register
  • Continuous temperature charts or data logger output
  • Refrigeration plant breakdown report and repair invoice
  • Power failure record from the supply company where relevant
  • Purchase invoices for the spoiled stock
  • Quality or laboratory report on the condition of the goods
  • Photographs, and the disposal or salvage record
  • Cancelled cheque and bank details in the insured's name, for the NEFT payment
  • Details of any other insurance covering the same risk
  • A claim bill: the amount claimed, itemised, with the working behind it
The timelineWhatever else you send, send a one-page timeline: loss, intimation, survey, documents sent, offer. More claims turn on the sequence of dates than on any single document.

Next

Machinery Breakdown Claim: What to Do, and what it shares with this

The machinery breakdown playbook is the one to open. The rule it turns on holds here too: nothing is dismantled, by you or by the manufacturer, until the surveyor has seen it as it stopped.

Call 92514 56334

Check the sum insured

This cover carries an average clause. Declare less than the value at risk and every claim pays that proportion short, a partial loss exactly as much as a total one. Three numbers will tell you where you stand.

Filed under: Property and engineering · Breakdown and machinery

Claims that sit next to this one

the same premises, or the same event

Machinery Breakdown

the breakdown that has to happen first

Business Interruption

the trade the spoiled stock was for

Fire and Special Perils

the premises the cold store is in

Machine down and the surveyor not been yet? Report a loss or call 92514 56334.