If you are an overseas importer and have 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/survey report
  • Original invoice and packaging 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 has a policy. In case there is a claim dealing 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: 1

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

Read More: Can a Customs Duty cover be bought along with an Open Cover policy under export/import insurance?

Last year, the company placed an order of importing engineering items worth Rs 50 lakh from a vendor situated in Maldives. L.S.N Automobile paid for all the consignment prior to receiving them. The shipment was scheduled to arrive India in ten days, however, when it was still in transit, it rained heavily and created the situation similar to flood. Though all crew members were saved, the entire consignment got damaged.

As L.S.N Automobile had prepaid the amount, it 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.

Here, the export & import insurance company appointed a surveyor to inspect the situation. The surveyor found out that it was flood 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 damage certificate along with the payment receipt. The insurer carefully reviewed all the documents and finally, approved the claim.

Case: 2

Situated in Gujarat, J.K, a food manufacturing company, was known for its high-quality food items. The company always packed its food in durable containers which are easy to carry and maintain. The company imports its packaging containers from Sri Lanka.

Read More: How Should an Insured File a Claim Under Export-Import Insurance?

Last year, when the company was importing packaging containers from Sri Lanka, the 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 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. Once all the documents are received, the insurer scrutinised and settled the claim accordingly.

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