Marine Insurance

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If you are an overseas importer and have an export & import insurance policy, you can approach your export and import insurer to file a claim under the policy. You can report a claim to any of the following-

  • The export and import insurance company
  • The nearest office of the export and import insurer
  • The overseas agent as stated in the export and import insurance policy document

While it is feasible to report the claim to any of the above, make sure to report a claim as soon as possible. Stick to the prescribed time-limit to file a claim under export & import insurance policy. Once the claim is registered, the insurer would ask you to submit certain documents, like:

  • Original export and import insurance policy or certificate
  • Copy of billing lading
  • Missing certificate and survey report
  • Original invoice and package list along with weight notes
  • Copies of correspondence as exchanged between carriers or bailees
  • Claim bill

There could be other documents as well which you would require submitting. Carefully check with your export and import insurance company to get more details.

It is always advised to buy a separate export & import insurance policy if you are an importer even if your exporter already has a policy. In case there is a claim with a foreign insurer, perhaps in a different language, it could be a time-consuming and frustrating situation for you. You might have to deal with courts in a foreign nation, and therefore, it makes sense to buy your own export & import insurance policy.

Case Study: 1

Based in Delhi, L.S.N Automobile is a leading name in the engineering sector. The company manufactures a wide range of engineering items. For its manufacturing operation, the company also imports engineering items from a vendor situated in Maldives.

Last year, the company placed an order of importing engineering items worth Rs 50 lakh from their vendor in Maldives. L.S.N Automobile paid for the entire consignment in advance. The shipment was supposed to arrive in India in ten days. However, when it was in transit, it rained heavily. The entire consignment got damaged but all crew members were safe.

As L.S.N Automobile had prepaid the amount, it also approached the marine insurance company for the claim settlement. Here, L.S.N Automobile registered its claim at the nearest office of its export & import insurance company.

The export & import insurance company also appointed a surveyor to inspect the situation. The surveyor found out that it was flooding which destroyed the consignment of L.S.N Automobile and therefore, it came under the purview of export & import insurance. As L.S.N Automobile had made a prepayment, the insurer computed the claim and agreed to compensate it. Here, the insurer asked for documents like a damage certificate along with the payment receipt. The insurer carefully reviewed all the documents and finally, approved the claim.

Case Study: 2

J.K  is a food manufacturing company in Gujarat. It manufactured high-quality food items. The company always packed its food in durable containers, easy to carry and maintain. The company imported its packaging containers from Sri Lanka.

Last year, when the company was importing packaging containers from Sri Lanka, a fire erupted in the ship due to technical issues. As J.K had already made a prepayment of the consignment, the company had to incur heavy losses.

In this case, J.K had an export & import insurance policy, and therefore, it approached the insurer for the claim settlement. The company contacted the insurer on its toll-free number. The insurer appointed a surveyor and asked for documents like claim form, a complete account of the accident, along with payment receipt, etc. On receiving the documents, the insurer scrutinised and settled the claim.

It would have been challenging for J.K to deal with financial losses without export & import insurance policy.

Additional Read: Why is it important to have export-import insurance?

SecureNow can help an overseas importer understand the export-import insurance policy. For more details click on https://www.securenow.in/ or https://www.linkedin.com/company/securenow-insurance-broker/