Steps to file a claim:
- Inform your insurance company as soon as you come to know about any potential claim to be covered under this policy
- Complete the marine insurance claim form fully, as directed by your insurance company
- Allow the insurance company to come for inspection of the loss/damage
- Provide the insurance company any other information they may need, or simply assist them as required.
- Allow the insurance company access to your personal information relating to claims held by other parties.
- File a complaint to the police if there has been suspicion of crime
- Take appropriate steps to obtain details of witnesses or list of vehicles/property involved in the incident.
Additional Read: How to file a claim under Marine Insurance?
Actions which you must NOT take:
- Take steps for the disposal of the goods or property falling under the claim.
- Attempt repairs to the property under claim unless otherwise advised by the insurance company to prevent the escalation of the claim.
- Behave in a way or say things which may cause prejudice to the insurance company’s ability to recover the claim from other parties responsible for it.
If the insurance company finds your claim to be fraudulent or dishonest in any way, they have the right not to take your claim into consideration and can further cease to apply the policy as from the date the fraudulent claim is proven.
In cases where the object of claim is recovered after settlement by the insurance company, the insurance company has the right to recover the object and you need to inform the insurance company immediately.
Case Study: 1
Established in 2012, XA IT Co. exported some computer parts to a buyer situated in the Middle East. However, upon reaching their reaching the destination, the buyer found that a major portion of the consignment was damaged and not as per the contractual agreement. Due to the damage, the buyer also suffered major financial losses and therefore, filed a case against XA IT Co.
Thankfully, XA IT Co. had a marine transit insurance policy, and it approached the insurer within a week of receiving the information about the consignment rejection from the buyer.
Upon receiving the claim intimation, the insurer appointed a surveyor who calculated the entire damages. The surveyor found that despite taking all the precautions in the packaging of the goods, some part of the consignment got damaged.
After receiving and reviewing all the documents, the insurer agreed to settle the claim within the coverage limit.
Case Study: 2
As L.S Engineering is involved in exporting engineering items via sea, the company has also bought marine transit insurance to get coverage in case any loss or damage happens to the goods.
Last year, the company was exporting its goods to a company situated in Dubai via water when the ship was caught in heavy rainfall, which not only delayed the consignment but damaged some boxes as well. When the consignment reached Dubai, the buyer refused to take the delivery of the goods and filed a legal case against L.S Engineering.
Luckily, L.S Engineering had a marine transit insurance policy, and the company immediately approached the insurer for the claim settlement. In the meanwhile, L.S Engineering brought back its goods to India and sold the destroyed boxes and their content in scrap. However, L.S Engineering did this before the insurer could inspect the damaged goods.
The surveyor appointed by the insurer found it difficult to ascertain the extent of losses and therefore, without any estimation of losses, the insurer refused to settle the claim.
Additional Read: Understand Your Duties as Insured Under a Marine Insurance Policy
It was difficult for the insurer to compute the total loss, and as a result, the claim amount was tough to decide. As a result, the insurer refused to accept the claim of L.S Engineering.
The situation would have been different if L.S Engineering had informed the insurance company before disposing of the damaged goods.