News: 20 January 2015
Marine Cargo Insurance covers loss or damage from physical risk during transportation, whilst also providing cover for general average and salvage expenses. Many clients do not realise that they are potentially liable for any salvage expenses should loss to the vessel occur.
We recommend clients to insure on cost, insurance, freight plus 10% in order to meet the client’s incurred expenses in the event of a claim.
Cargo Claims Procedure
The following is a step by step guide including documentation requirements:
- Where damage is evident, always ensure your staff or your agents accept the goods with a receipt which acknowledges the damage.
- All goods should be examined for hidden damage as soon as possible upon receipt.
- Upon discovery of damage, immediately give notice to your freight forwarder, all carriers and their agents and give all parties the opportunity to sight the damage.
- Unless it is imperative to commence unpacking, leave goods in their containers or packaging until a survey has been made. Where unpacking is necessary, retain packaging for surveyor’s inspection.
- Lodge “Proforma” claims immediately damage becomes apparent. These claims should be lodged against all parties who could be responsible for damage.
- If the cargo is shipped in a container on a FCL basis and has suffered water damage, check containers for leaks and call for independent verification prior to releasing container.
- If a survey is not required, do everything necessary to reduce the loss and safeguard the property. Always act as though cargo is not insured.
- Upon completion of the assessment of damage lodge a valued claim against all those who could be responsible for damage.
Always ensure full documentation is submitted to your forwarder as soon as possible.
Documents usually needed to loge a claim:
News added by: Morne Ferreira on 20 January 2015
- Original Insurance Certificate/Proposal
- Original copy of Bill of Lading or Airwaybill
- Certified Invoice from supplier
- Packing List
- Copy of Local Carries Dockets
- Copies of all Claused Receipts
- Copy of Proforma Claim and response