No matter how straightforward you think, your marine insurance policy is, surprises can crop up, leaving you wondering why and how it arises. Unfortunately, marine insurance claims denials are common, and therefore, it is essential to take immediate steps to ensure it doesn’t happen to you. Here we have listed below some of the main reasons for marine insurance rejection along with tips to avoid them.
1.Negligent in maintaining the vessel: Unfortunately, you can’t depend on your marine cargo insurance company to cover those damages as well which happen because you were negligent in maintaining your vessel. In case, you fail to maintain your vessel or equipment properly, the marine insurance company can reject your claim.
Tip: Keep a log of all the maintenance and repair work you have done to your vessel. Furnishing this documentation greatly helps in improving your ability to recover damages.
2. You don’t have the proper insurance policy: You don’t have the proper marine cargo insurance cover which you think you have. It means it doesn’t offer you comprehensive coverage. Changes to your business, changes to your cargo and a lack of regular policy review could add up to a nasty surprise at the time of filing the claim.
Tip: It is essential to do a regular review of your insurance policy in order to curtail the effect of potential negative events.
3. Make a mistake in filing the insurance claim: Whether you filed your claim under the wrong policy, make a mistake in assessment or simply make a typo error on the policy form, all of these mistakes can actually lead to your claim denial. In those situations where the claim is not rejected, the insurer can use mistakes on your insurance claim form as an excuse to delay your claim settlement process.
Tip: Take the help of a qualified and experienced professional who can review your form before you submit them to the insurer. Here SecureNow, a leading corporate insurance advisor, can be of great help who has a team of experts to manage claims.
4.Improper packaging of materials: Packaging of cargo is necessary to ensure the safe transit in high seas or long distances by road. Just because you have an insurance policy, it doesn’t give you the privilege to act carelessly. If the loss happens because you used the inferior packaging materials, the insurer has all the rights to reject your claim.
Tip: Always use good packaging materials to avoid loss.
5. Transporting perishable items: Though it might be written in the marine cargo insurance that loss or delay will be covered under the policy, such is not the inherent case when the nature of the property is such that it will lead to contamination or loss. For instance, the property of ice cream is such that it will melt if the suitable temperature is not maintained. If the inherent vice of the product leads to loss or damage, it will not be covered under the marine cargo insurance policy.
Tip: Before transporting perishable items, check with your insurer whether losses or damages to goods will be covered or not.
It is strongly advised to talk to your insurance advisor or the insurer beforehand to avoid any misunderstanding regarding when marine cargo insurance policy would be applicable and when not. Carefully assess your needs and make sure that the policy being availed matches your needs.
The financial health of your business sometimes depends on the success of a major marine insurance claim, so don’t leave anything to chance. Whether you are trying to mitigate future losses or struggling to make sense with the claim process, SecureNow can offer you personalized support from start to finish.
SecureNow is a reliable corporate insurance advisor who can help you with multiple policy quotes, proposal filing and manage your policy while you peacefully conduct your business.