Procedure and Documentation for Filing Claim of Marine Insurance.

 

The information provided here is part of Import Export online Training


Procedure and Documentation for Filing Claim of Marine Insurance.


Procedure and Documentation for Filing Claim of Marine InsuranceHow to claim Marine Insurance? What are the procedures and formalities to claim Marine Insurance?

 

Tips to claim Marine Insurance.

In this article, let us discuss procedures and formalities to claim Marine Insurance from Insurance Company.

 

Notice to Insurer 

Intimating insurance company about the loss or damage of goods is the first step to be taken by the insured under claim of Marine Insurance. In the event of loss or damage to the goods, insured or his agent has to give immediate notice to the insurance company.

Reasonable Care

Ina marine Insurance, it is a condition of the policy that the insured and his agents should act as if the goods are uninsured and should take all such measures and actions as may be reasonable and necessary to minimize the loss or damage. They must also ensure that all the rights against carriers, baileys or third parties are protected. So Reasonable care is one of the measures to be taken in to consideration under the procedures of claiming Marine Insurance against loss or damage of export import goods of international trade.

Survey and Claim

Survey and claim is the next step to be followed under procedures and formalities to claim Marine Insurance under export and import goods. In a Marine Insurance, at the time of taking delivery, if any package shows signs of outward damage, insured or his agents must call for a detailed survey by the ship surveyors and lodge the monetary claim with the shipping company for the loss or damage to the packages. A certified marine surveyor can be appointed at the location where damaged cargo is available.

Outward Condition

When the outward condition of the packages is apparent, the insured takes delivery unsuspectingly. After reaching warehouse, one opening the packages, they find damages to goods. In such an event, the insured and or agent should immediately inform the insurance company and call for the ship surveyor for detailed survey. They should not make any delivery of goods. They should not disturb the packing materials or the contents in packages. This is important in claiming Marine Insurance under export and import trade.

Missing Packages

In case any package is found missing, the insured must lodge the monetary claim with the insurance company and its baileys (shipping company) and obtain a proper acknowledgement from them. This is one of the formalities to claim Insurance under import export of international trade.

Time Limit

In a Marine Insurance, the time limit for filing suit against the shipping companies is one year from the date of discharge of goods, which may change as per the rules and regulations of insurer.

Documents Required

The following documents are to be submitted by the insured to enable the insurance company to settle the claims expeditiously :

1. Original insurance Policy or Certificate.

2. Copy of Billing Lading.

3. Survey report / Missing certificate.

4. Original Invoice and Packing List together with shipping specification or weight notes.

5. Copies of Correspondence exchanged with the carriers or bailees.

6. Claim Bill.

Precautions

While procuring insurance, exporter should observe the following precautions in claiming Insurance under export import goods:

(i) Amount of insurance is 110% of C.I.F value of goods. 10% covers anticipated profits. In other words, exporter is allowed to take a policy to cover profits up to a maximum amount of 10% of CIF value.

(ii) Insurance documents is not later than the date of shipment.

(iii) Amount insured must be in the same currency invoice to take care of the exchange fluctuations.

(iv) Insurance document is issued by the insurance company or its agents or underwriters. The document issued by the brokers is not a good document.

 

Also read - KINDS OF LOSSES in Marine Insurance,   Terms Used in Marine Insurance,   RISKS NOT COVERED BY MARINE INSURANCE,     Types of Insurance Documents,     TYPES OF MARINE INSURANCE POLICIES .  I hope, these article provide you a better knowlege about Marine Insurance under international business.

I hope, I could explain in simple terms about the procedures, formalities and documentation procedures to claim insurance in export import of international trade. Have you satisfied with this article about tips to claim marine insurance in exports and imports trade?

Do you wish to add more information about the documentation procedures to claim marine insurance? Share your experience below about procedures and formalities to claim Marine Insurance under Exports and Imports trade.

The above information is a part of Export Import Training course online

 

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Comments


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sandeep Rawat: I feel this is best site to get the knowledge about EXIM...Thanks a lot...

ASHISH DEVRANI: This is best ever website to find process of EXIM,i love this site

Bhatia: I need your guidance. I want full details about forward contracts and marine insurance. I need link of site who has actually issued the rules and regulations for these two.

SUBRATA DAS: Dear Sir, I have a little company.I want to know about Goods Insurance & Claim Procedure.

emmanuel robert: discuss one major marine insurance loss based on the last 10 years from a claims perspective...i need the answer

TK RAJENDRAN NAIR: What is the stipulated time frame for lodging a claim under Marine Insurance Policy with the underwriter?

aly: Amount of insurance is 110% of C.I.F value of goods in case of claim ,do we add this 10% in the insurance value then we subtract dedecution or we add the 10 % to the net claim value in the end as : ins. value 110% - deduction whatever it be = net claim or invoice value - deduction = claim amount claim amount + 10 % = claim value please could you reply to my mail above

Adrian Chee: I got a containerized shipment under CIF terms. What are the procedures when comes to claim insurance from buyer perspective? Kindly advise.

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