Procedure and Records for Claims on Marine Insurance
1. What is Marine Insurance? An essential type of insurance for freight forwarding, supply chain management, and import-export companies, ensuring that goods and ships are covered against loss or damage with financial assistance against risks pertaining to seaborne transportation.
2. Coverage of Maritime Transport
Marine insurance pertains to any sea transport of products, be it domestic or to international ports. This insurance covers hazards such as adverse weather conditions, shipwrecks, and piracy, which are crucial concerns for companies that rely on ocean freight to get their goods there.
3. Cargo Damage
The possibility of cargo damage during transit is one of the biggest worries for companies. The expense of damaged products resulting from fire, severe seas, or even theft during shipment is covered by marine insurance plans. This approach makes sure that companies don’t lose a lot of money when their products are compromised.
The company may submit an insurance claim letter for compensation under the maritime cargo insurance policy if a shipment of fresh product spoils during transportation as a result of refrigeration failure.
4.Damage to Vessels
Marine insurance covers vessel damage and also protects the cargo. This is such an important issue, especially for the shipowners, as it may be very expensive to replace or repair damaged ships. When a vessel was damaged by a storm, by technical failures, or by any maritime accidents, insurance conversely provides monetary security. With respect to the damage caused to a cargo vessel on colliding with another craft, the marine insurance shall ensure compensation to some extent for the loss of the shipowner to bear the cost of repairs.
5.Additional Liabilities at Sea
Marine insurance is concerned with damage to cargo and vessel, among other maritime liabilities. These hold cases relating to personal injury and third-party liabilities for damages to other craft or property.
If the ship accidentally damaged a port installation whilst docking, repairs to the installation and any consequent liabilities would be covered by the shipowner’s marine insurance.
Time to now find out what you have to do to make sure your marine insurance claims are dealt with smoothly and trouble-free.
Responsibilities Under a Marine Cargo Policy
Did you know that your marine insurance claim can be denied if you fail to take the proper action after discovering damaged cargo? It is necessary to understand your responsibilities under a maritime cargo insurance policy in order to protect your property and ensure a smooth claims process.
Adhering to certain procedures is key to the success of your marine insurance claim process upon receipt of a damaged shipment.
Mistakes like signing for a clean receipt or disposing of spoiled items prior to inspection can lead to claims being rejected and financial losses.
1.If the shipment is damaged, do not accept a clean delivery receipt.
Looking at the goods carefully prior to signing the receipt for delivery is among the most crucial tips in accepting a package. Never sign a blank receipt if the delivery is clearly damaged.
Your claim can get complicated or even rendered invalid if you do so as it may be considered as an admission that the shipment was received in great condition.
Why It Matters: You retain your entitlement to claim the damaged goods by not signing a clean delivery receipt, which ensures a hassle-free insurance process.
Utilize Pazago’s electronic documentation management system to keep accurate and handy records.
2. Before conducting a survey, do not dispose of damaged cargo.
Making sure that damaged items are not disposed of before a surveyor has examined them is another crucial duty under a maritime cargo insurance policy. Your freight insurance claim cannot be processed until the insurer has confirmed the degree of the damage. A claim might be rejected if the goods is disposed of too soon.
Why It Is Important Without their confirmation, the claim could not be handled since surveyors offer the crucial proof required to evaluate the legitimacy of your insurance claim letter for payment.