The terms of procedures, formalities, and documentation form a critical part while filing a claim for export and import insurance. Following procedure should be followed in the event of occurrence of loss:
- Intimate the Insurance Company about the Loss
To file the claim under export and import insurance, the first step is to notify either of the following:
- The export and import insurance company or
- Its nearest office or
- Its overseas agent as mentioned in the policy.
The insurance company should be intimated about the loss without delay. It is essential to file the claim within the prescribed time limit.
- Surveyor appointment by the Insurance company
The insurance company appoints a surveyor to determine:
- The cause of loss
- The extent of loss
Details to be included in the survey report are:
- If the packing was sufficient?
- Any recommendations, if any, on the improvements?
- How could the claim have been minimized?
- Was there a failure on account of the insured by not taking adequate measures to avoid or minimize loss
- Failure on account of the insured for not protecting the rights of recovery from carriers/ Port, etc.
- Landing Remarks
It is essential that the insured obtains the landing remarks from the Port Authorities.
- Document for the Claim
The insured must submit the following documents:
- An original insurance policy or certificate
- A copy of billing lading
- Survey report / Missing certificate
- Original invoice and packing list along with shipping specification or weight notes
- Copies of Correspondence exchanged with the carriers or bailees
- Claim bill
Read More: What is Marine Insurance?
Case 1 on Filing a Claim under Export-Import Insurance
MM Gasket Inc. based in India was a client-centric organization, engaged in offering an unmatched range of Steel Gaskets to the clients. The entire range of steel gaskets was well tested under the supervision of experts to ensure international standards of quality. The company had got a huge consignment to export steel gaskets worth rupees 20 lakhs to a company based in Singapore. The consignment of steel gaskets was delivered to the company after three days via waterways.
However, upon arrival of the cargo, the importing company rejected the delivery. The cause for the same was rusting of the steel gaskets and not being up to the required standards. As MM Gasket Inc. had bought an export and import insurance policy, the company immediately approached its insurer for claim settlement. The surveyor was appointed to consider the matter.
The surveyor found out that despite good packaging, the shipment of steel gaskets rusted due to exposure to salt water during transportation. The reaction caused the steel gaskets to rust during the transit. The insurance company asked MM Gasket Inc. to submit a damage certificate along with a proof of dispatch. The original invoice and packaging list were also submitted. The insurer reviewed all the documents and approved the claim settlement.
Case 2 on Filing a Claim under Export-Import Insurance
A food manufacturing company, located in Gujarat, was well-known locally for its excellent quality of raw materials used. Word of mouth spread and the company started getting consignment to deliver the food material to distant places. As the company was new, it did not have much experience in exporting to out of state places. In its journey to expand and progress, the company thought of taking an export and import insurance to protect its exported products from any loss.
Once, the company got a consignment to export the food items to Goa. Upon delivery, the importing company rejected the consignment. The food manufacturing company immediately contacted its insurer.
Upon investigation, the surveyor of the insurance company found that the exported food items were a type of perishable food items. They required a special type of cooling during transportation. However, the company did not know about the cooling requirements of that perishable food during transportation and packed the food items as they did it locally.
As there was negligence on account of the food manufacturing company, they did not get the benefit of the export and import insurance claim.
[cta id=”984″ vid=”0″]