Most cargo claims are lost at the gate, on the delivery note.
A clean signature on a damaged consignment is given away in a hurry by someone who did not know what it cost. Here is the order to do things in.
What loses itSigning a clean receipt. It is the carrier's strongest defence, it is given away at the gate in thirty seconds, and it is very hard to undo.
- Do not sign a clean receiptIf the consignment looks damaged, short or tampered with, write that on the delivery document in specific terms before you sign it. Not "received in damaged condition" -- what is damaged, how many, which seals.At delivery
- Tell the insurer immediatelyAs soon as the loss or damage is noticed. Marine cover is intimation-sensitive and the insurer may want a surveyor to see the goods before they move again.Same day
- Serve notice on the carrier in writingA written claim on the transporter, shipping line or airline, within the time your policy and the contract of carriage require. Missing this can destroy the insurer's right of recovery and with it part of your claim. The limit differs by policy and by mode, so read yours.Within the time set
- Hold the goods and the packingIncluding pallets, crates, seals, the container and the lashing. Packing often decides whether the cause was an insured peril or insufficient packing, an exclusion.Until surveyed
- Photograph the consignment as it arrivedBefore unloading if you can. Seal numbers, container condition, the stack, the water line, damaged cartons in place, then the goods themselves.At delivery
- Get a joint survey arrangedWith the insurer's surveyor and, where possible, the carrier present. A survey attended by all sides is much harder to argue with afterwards.Days 1 to 3
- Assemble the transit fileInvoice, packing list, lorry receipt or bill of lading or airway bill, the policy or certificate, the delivery challan carrying your remarks, the weighment slip, and the correspondence with the carrier.Days 1 to 5
- Do not repair or dispose of the goodsNot until the surveyor has seen them and the salvage position is agreed in writing.Until settled
The quiet oneUnderinsurance. If the sum insured is below the value actually at risk, the average clause reduces the claim in proportion however well the rest of it is run. Check where you stand. It takes three numbers and nothing is stored.
Fire Claim
A fire, explosion, lightning strike or impact loss at a business premises.
Machinery Breakdown Claim
A machine has failed electrically or mechanically and stopped production.
Consignment already signed for, and now you have opened it?
Whoever placed your policy, and whatever stage the claim has reached.
Three deadlines
- Tell the insurer now, not after the assessment.
- Notice to anybody else responsible the carrier, the contractor, the police, within the time your policy sets.
- Every document within the time the insurer asks for it.