Do you know everything that you need-to-know about filing your Marine Insurance Claim to process the same asap? Read it to know all that you need-to-know.
Marine insurance is often termed as “cradle to grave” insurance since it covers your goods and vessels at every step, be it pilferage or loss due to theft or natural calamities. It is very important to note that the documents required for the claim should be original and all insurance documents are issued by agents of the insurance company and no third-party broker. Apart from reporting the unfortunate event to the insurer and claiming a reimbursement for the same, adequate measures need to be taken to ensure there is minimal human error involved and no deliberate attempt to claim reimbursement.
Things to Consider Before Filing a Marine Insurance Claim
In an event where the goods are damaged or stolen or spoiled by any of the mishaps on the way to the delivery location, a marine insurance claim needs to be made as early as possible. The marine insurance company then employs a surveyor to ensure that no false claim of insurance has been made. Hence it becomes imperative for the insured to make sure that there have been no misses in the packaging, or during hauling. In case of which, the insurance claim might end up being rejected. Once the surveyor investigates the damage, a clean chit is then given to the insured and the insurance company regarding the damage being authentic and no involvement of deliberate human error. Simultaneously, an acknowledgement letter needs to be received from the shipping industry as well confirming the damage. The facts about the damage and insurance claim should be made accurately. In case the insurance is claimed basis theft of goods, a formal FIR needs to be appended along with the insurance claim.
You need to keep all the necessary documents handy and filled up before you claim any insurance from the insurer. For instances where the goods qualify as an import cargo, an invoice and a packaging list need to be submitted to the insurer for the claim. Additionally, a bill of lading, consignment note and declaration of monthly transits need to be submitted as well. For cases where the cargo has been stolen or partially lost, the insured needs to produce a certificate of non-delivery and fill up a stolen certificate as well. Furthermore, the insured will be required to submit the KYC (know your customer/client) documents to the insurance company for a claim that’s beyond a certain amount, as per regulations.
If the insured is an exporter, it is very crucial to check if the insurance date precedes the date of dispatch of the goods. Otherwise, the insurance claim is not considered valid where the insurance date had already lapsed before the goods were dispatched.
Few things that to consider before filing a marine insure claim:
- Make sure you take reasonable care to ensure that the goods, if uninsured, are packaged and loaded up to survive any adverse condition. If the goods are insured, adequate documentation needs to be updated indicating the packaging details, documents from the shipping company and invoices from the buyer before an insurance claim is made for any damage or loss of cargo.
- During the time of delivery, if the cargo shows any signs of damage, ensure the event is lodged with the shipping company, and appropriate monetary claims are made with the shipping company for the same. Additionally, several third-party vendors provide the services of surveying the cargo before they are dispatched. Though it might add on to the cost, it will help in the long run to carry out a smooth business and insurance claim.
- Instances, where the goods are lost, stolen or partially vanished an acknowledgement form, needs to be kept handy from the insurer and the shipping company.
- Most of the marine insurance companies have a time limit within which a claim needs to be made. Make sure you have adequate documentation ready and file a claim immediately in case of any mishap.
- Keep all documents ready. Documents like Original insurance certificate, bill of lading, invoice, missing certificate, survey reports, copies of correspondence with the shipping companies or the buyer, claim certificate and other KYC documents needs to be produced as and when required.
In case the insurance company identifies the claim to be falsified, the policy might hold invalid from the very day. Thus, it is crucial to take all necessary precautions at your end and report the loss which occurs after all safety measures adopted. Irrespective of the mode of transport adapted to transport your goods from the warehouse to the delivery location; there are various risks associated with the various means. Be it the storm at sea or the pot-holes on the road or ruptured tracks of the railway; it is wise and sensible to be prepared for any impending danger.