Irrespective of the transportation mode chosen, lots of risks prevail in transporting goods from one place to the other. Unpredictable potholes and turbulent seas are always there to disrupt your otherwise smooth journey.

There is a marine cargo insurance to safeguard you against various types of losses or damages that may arise during cargo transportation. In the eventuality when goods are damaged or stolen, a marine insurance claim needs to be filed with the insurance company. However, just having the insurance is not sufficient if you don’t know how to use it, i.e., how to file a claim. So, to help you out here is a complete procedure that needs to be followed at the time of claim –

Here are the procedure and formalities involved in settling a marine insurance claim –

1. Notice to the Insurer – Informing the marine cargo insurance about the loss or damage is the first step that needs to be taken by the policyholder. In case, the policyholder is unable to inform the insurance company, someone on his behalf can do so.

2. Proper Care – As per the marine cargo insurance, it is imperative for the policyholder to take all the steps to curtail the losses or damages. The policyholder should act as if the goods are uninsured. Just because one has a marine cargo insurance, he/she can’t act carelessly.

3. Survey and Claim – As per the marine insurance, if at the time of taking the goods delivery, any package shows signs of outward damages, the policyholder or his agents must call for a detailed survey by the ship surveyors and also lodge the monetary claim with the shipping company.

4. Missing Packages – In case any of the packages are missing, it is mandatory for the policyholder to file the police report immediately and also obtain a proper acknowledgement. The insurer can ask you to submit the police report if the claim is related to theft.

5. Claim Duration – In a marine cargo insurance, the time limit for filing the marine insurance claim is one year from the date of goods discharge, which can further change as per the situation and the conditions specified by the insurer. Upon receiving the claim intimation, the insurer appoints a surveyor who visits the site at which goods are damaged or lost and after the proper inspection, submits its report to the insurance company on the basis of the findings. Moreover, it is always advised to file a marine insurance claim on an immediate basis because the claim process will be much easier, however, any delay could also make the claim process difficult.

In case you have purchased your marine cargo insurer from corporate insurance advisors like SecureNow, make sure to inform them about the claim as soon as possible. They can help you in filing the claim. Further, most of the insurers let you register your claims online.

Some of the documents which are required for the marine insurance claim settlement are-

  • Copy of the insurance policy or document
  • Copy of billing lading
  • Survey report
  • Original invoice list together with shipping specification
  • Copies of letter exchanged with the carriers
  • Claim bill

Along with the above documents, you will also need to submit the copy of your monthly declaration of transits and a carrier’s consignment note. In case your goods are partially missing, damaged or completely lost, the insurer may also ask for a shortage, damage, or non-delivery certificate respectively.

Further, if you are the exporter, make sure that the date of insurance precedes the dispatch date of the goods in order to ensure that the insurance policy is valid. Further, it is useful to align the insured goods in the same currency as the one which are mentioned in the shipping invoice. It shields you against any currency fluctuations. Moreover, when you have a marine cargo insurance, you are in a better state to take a risk in order to grow your business.

Important Points to Note

  • Inform the insurer about the loss or damage as soon as possible
  • Take all the steps to ensure the safety of the cargo and minimize losses
  • Disclose all the material facts related to the losses or accidents

Indeed, the importing and exporting of goods can expose you to heavy financial losses should your goods carrier damaged in transit. So, it is necessary to have a marine cargo insurance. Catering to the needs of both the importers and exporters, the marine cargo insurance policy safeguards the goods from the time they leave the seller’s warehouse until they reach to the buyer’s warehouse.

Author Bio

Qualification: MBA
Company: Holistic Investment Planners Private Limited
Location: Chennai, Tamil Nadu, IN
Member Since: 01 Dec 2017 | Total Posts: 195
Ramalingam is the Founder and Director of Holistic Investment Planners Private Limited (WEBSITE - www.holisticinvestment.in). As the creator and architect of the 3-Dimensional Holistic Investment Approach, he has advised hundreds of clients including affluent business owners, corporate executives View Full Profile

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