Marine Claims > Case Study – II (In Bags items)

Losses of cement Uria, Pulses, Plastic Chemicals raw sugar in bags.

• Visit & quantify and segregate the safe, affected bags.
• Affected bags to be further segregated in partially or full affected bags from salvaging angle on % bases.
• Identify the bags with weight & batch no’s Visa – VS invoice/records, packing list.
• Arrange Photo’s showing damages.
• Discuss salvaging & Tender proceed or to settle the loss as partial loss on % basis.
• To study the cause of loss.
• To take immediate steps for reprocessing/disposal by opening bags etc.
• Excess deduction as per policy.
• To see the open declaration of policy if any.
• For the loss assessment verification of reprocessing expenses will have to be vouched /verified for e.g. reprocessing of raw sugar & oil.
• To determine both.
• To see that claim is lodged.
• To see the shortage & damage certificate.
• FIR in case of accident & shortage loss.

Type of Commodities & Steps to be taken

1. Glass/Tiles/Picture Tubes and Similar type of items

• In case of glass and similar type of items, the packing should be appropriate to prevent the jerks and jolts during the transit.


• In case of broken glass sheets, the possibility of reusing after the reduction in size could be helped to retrieve more salvage value.


• Similarly in case of finished picture tubes, the possibility of reusing the metal parts can not be ignored


• The consignment can be identified with the pallet nos and S.no. with the packing list attached with the invoice.


• The damages picture tubes should be destroyed.
  


• The underwriters representative should always coordinate.

Chances of Frauds

If one consignee is continuously receiving similar type of items (glass – picture tubes, panels & funnels etc), and considering the nature of items there are more possibilities to the damages during the transit. Suppose the surveyor could not reach the site before the unloading, there is a possibility to show the surveyor old broken/damaged consignment (which may or may not Claimsd earlier).

2. Machinery

• In case of machinery damaged in transit, it was necessary to verify the mode of packing (if it covers the nature of packing mentioned in the policy)
• To examine the nature of damages and immediately arrange to shift the consignment from the accidental place to the consignee/consignor premises and arrange joint inspection with the suppliers engineers to determine the exact quantum of damages.
• Arrange repair estimates
• Determine the salvage value.
• Obtain the pre-dispatch survey report

Chances of Frauds

• If the machine was dispatched in damaged condition.


• If after the loss the machine damages are not controlled then leads to exaggeration, so insurers engineer’s visit is required.

3. Cloth/Cotton etc.

• In case of shortage loss, it can be verified from the packing list and bales numbers mentioned in the consignment.
• In case of fire in cotton bales, the volumetric analysis also helps the actual quantity damages vs ash weighment.
• In case of water damages, immediate steps should be taken to minimize the loss i.e. segregation/drying process
• Determination of salvage value

Chances of Frauds

• There is a possibility of damaged/ poor quality material or the rates mentioned in the invoice on higher side.

4.0 Medicines/Food items etc.

• In case injection/ syrup bottles and other medicines or food items were broken, it is very necessary to verify the batch number, expiry date.
• The salvage should be destroyed in presence of surveyor,

Chances of Frauds

There is a possibility of showing old broken pieces of costly injection/ bottles and Claimsd that which were damaged in transit. In such circum stances the surveyor should cross verify the batch number and date of expiry on the bottle s well as the invoice

5.0 Paper Rolls/Aluminium Rolls etc

In case of paper rolls/ rims were cut/ wet during the transit, the following steps should be taken:

• Quantify the no. of rolls/ rims with their net weight
• Identify the roll no./rim number with packing list
• The sound portion of the paper should be removed from the damaged portion after determining the damaged portions weight by using relevant formulas, which helps further assessing damages.
• In case of paper rims damages, it should be salvaged by minimizing the size and it can be used as fresh.
• The balance damaged/cut portion can be sold as scrap/ writing paper.
• The formula which is using the calculation of weight of the cut/ wet portion is

4T (D-T) X 4
D2- C2

Chances of Frauds

• If the machine was dispatched in damaged condition.
• If after the loss the machine damages are not controlled then leads to exaggeration, so insurers engineer’s visit is required.

6.0 Liquid Type of Consignments

In case of bulk edible oil damaged with water:

2. It can be reprocessed by using some extra costs/ chemicals.
3. While calculating the loss, the following aspects should be keep in mind:

c. Loss due to weighment shortage
d. Extra expenses due to storage/transportation
e. It may also to verify the normal expenses for reprocessing the sound cargo and the actual expenses incurred for reprocessing the damaged cargo and the difference between both should be treated as loss.

In case of liquid type consignment evaporated/ leaked out

• The balance left over quantity to be determine and exact calculate the loss on exact lost quantity.
• The circumstances of loss should be investigated.
• Take immediate steps to shift the consignment to a safer place to prevent further leakage/ damage

In case shortage in transit the following aspects to be cross checked.

• Genueninity of dispatch of the consignment and determine the actual quantity dispatched.
• Authenticity of the transporter
• Copy of FIR and their investigation reports.
• Genunity of the payment made by the consignor
• Outward register/ weightment slips from the consignor
• Original GR which shows h entries of various Sale Tax posts during the transit to prove the authenticity.
• Detailed enquiry from the truck driver/ transporter.
• Correlate all the statements, records, police records and the circumstances of loss

Chances of Frauds

Firstly, to determine the exact quality/nature of item transported. In some cases, thy transported even water in the tanker and after the accident (intentional) they Claimsd that the consignment was some chemicals costing crores of rupees. In such circumstances the sampling and testing of left over chemical is required to prevent this type of frauds.