Special Features of Claims

Product Liability claim:

• Whether the product is covered under the policy
• Whether the quality control measures as prescribed is adopted
• Whether manufacturing defect in product is established
• Whether specific instructions for use given by Insured.
• Specialists/Experts determine whether product is defective.
• Whether compromised settlement is worthwhile.
• Recovery Rights, if any, are protected.
• Whether Loss Minimization Measures are adopted like recall.

Carrier’s Legal Liability:

• Whether the claim falls within the policy conditions.
• To examine if admission of liability under Motor Policy and marine cargo policy.
• To verify the lorry receipt, Invoice and ascertain whether the description failed.
• To obtain FIR.
• To obtain confirmation that liability on cargo policy admitted by the Insurer.

Marine Cargo:

• Only Damage to the Cargo is covered, consequential losses are not covered.
• In case of CIF Port shipments, pre-dispatch survey at discharge port is mandatory for All Risk Cover.
• Recovery rights against the Carrier must be protected to avoid deduction in Claim.
• Skilful pilferage is exclusion under the policy unless specifically provided for.
• Shortage & damages from Sound & Sealed intact containers is exclusion under the policy unless specifically provided for.
• Valuation of cargo must be agreed in advance to avoid disputes at later stage.
• Second hand machinery must be valued by Chartered Engineer.
• Loss due to delay is an exclusion under the policy, unless specifically provided for.
• Original documents must be presented for release of final payment.
• Add on covers like Container Cleaning Charges, Express Freight charges & Salvage destruction charges can be covered on payment on additional premium.
• Excess under the policy must be defined in terms of Conveyance value as Consignment value is much higher in case of Export & Import shipments.
• Insufficiency of packing is one of the major reasons for Claim repudiation. Therefore Packing must be good enough to sustain the intended journey. Packing certified by Indian Institute of Packing (IIP) will surely assist in challenging the Claims repudiated on account of insufficiency of packing.
• Inherent vice is another exclusion, which can be interpreted by the Claim Settling Authority to deny the Claim. It is always advisable to understand the inherent vice related to your product at the time of placement of insurance.
• Selection of vessel is an important aspect in Marine Cargo Claim. Many claims have been repudiated on account of Overage. Therefore do check the Vessel details on www. equasis.org at the time of loading the cargo.