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Claims - I

posted 29 Oct 2014, 06:43 by olnf Admin   [ updated 29 Oct 2014, 06:44 ]

Author - Suparas Singhi


This is my second attempt to write down the points or thought gained through last four and half years of experience in this industry. I am not an expert but that won’t stop me from publishing what I know.

I received one request (only 1...) where the person/reader/follower wanted me to post something related to claims.

Claims as a subject of discussion is simple but in reality getting a claim settled fries one's brain out...phew...Claims Management is very complicated, subject and I repeat it again...I am not an expert but nothing wrong in giving it a try...

Let's break it down into following stages:

  • Project Stage

    • Marine (Shortage / Damage)

    • EAR / CAR

    • ALOP / DSU

  • Operational Stage

(Please note I deal in Engineering and Property Insurance...so everything will be from that perspective...please be nice to me...)


In a project getting the consignment/machinery/equipment delivered at site/project location plays an important role.

Today we will only discuss about few scenarios related to Marine Claims pertaining to a project. Project cargo can be an indigenous or an imported one...under both the scenario probability of unforeseen fortuitous loss is quite high and Project running for years definitely gone see numerous marine claims. Most common Marine claims are:

  • Shortage at Port/Site

  • Damage at Port/Site

  • Accidents

(Hope I have not missed anything important)

One cannot avoid these situations but proper risk management will help in reducing these instance. Since these are unavoidable circumstances, where you need to be prepared for claims. Settlement of such claims is delayed because of non availability of documents and lack of timely action.

Irrespective of you be a Broker or an Insured, one needs to keep this list of documents always ready for tackling marine claims:

  • Invoice Copy (Original & Resupply)

  • Packing List ( Original & Resupply)

  • Detailed Packing List ( Original & Resupply)

  • Bill of Lading ( Original & Resupply)

  • Bill of Entry (Try to have a legible copy) ( Original & Resupply)

  • Ensure Vessel is sea worthiness i.e. age below 25 years

  • Vessel Loading Inspection report

  • Vessel Unloading Inspection Reports

  • Cargo Loading on trucks/trailer Supervision report

  • Customs Examination Report

  • Carting Order

  • Joint segregation Report - attended by insured and surveyor representative

  • Service Engineers report for the damages sustained

  • Lorry Receipts

  • Quotation for salvage for disposal at least from 4 to 5 vendors (don't dispose the salvage without prior approval of insurer  surveyor)

  • Payment proof for any additional cost incurred for freight, custom duties, clearing & forwarding expenses

  • Most importantly a monetary claim is to be lodged on the carrier or port authorities or other party involved/responsible for the loss. For lodging a monetary claim a fixed time line is provided be it an air carrier or an ocean carrier or port trust or road carrier. (Please contact your insurer for more detail).

  • Also note that just lodging a monetary claim won't serve the purpose. The monetary claim needs to be sent through registered post and postal registration receipts, receipt of Acknowledgement Due Cards relative to such claims, and any official acknowledgement from such party needs to be preserved, also document and preserve the follow up action done.

  • Port Trust Landing certificate/ Damage Certificate / short landing Certificate

  • Shortage certificate needs to be issued by Carrier / C&F Agent/ Shipper

  • Get the BL / LR endorse by the Vessel Officers / Driver in case of short/ damage supply

  • Vessel Log book if the carrying vessels has sustained any casualty or encountered adverse weather

  • Claim Bill ( Don't forget to claim 10% incidental expenses...its always on higher side than actual incurred)

  • Claim Form

  • Declaration Detail (if relevant)

  • Confirmation on duties which are applicable to the project

  • Payment Proof for all expenses incurred along with the bank transaction sheet

Please note that the above list is just indicate in nature. The Letter of Requirement (LOR) raised by surveyor will vary case to case. Above list contains basic documents and key action points which a broker or an insured should never miss.

Once again I repeat above list is not exhaustive and should not be taken as a thumb rule. The article is open for amendments/corrections/suggestions/comments. Please feel free to contact admin.

Last but not the least, hope the article/post is of some help for beginners and learners like me...

Wish you a very Belated Happy Diwali and Happy New Year...

Good night Sweet Dreams...

(Article prepared in Blackberry Q5)

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