Marine Claims

Some Important aspects and case studies.
1. Role of surveyor in loss assessment.

• To see the proximate cause of loss
• To see cause of loss vis- a –vis coverage under policy
• To assess the amount of loss payable under the policy

Coverage would depend upon terms & conditions of the policy i.e. clauses attached and provisions of marine insurance act1963.

Principles of Insurance of marine has to be kept in mind by the surveyor in loss assessment:

Principles of :

• UT most good faith
• Indemnity
• Representation & warranties
• Insurable interest
• Proximate cause

2. Type of Losses in Marine

1. Shortage loss – due to theft or transit loss.

2. Loss due to accident (material damage)

     Due to fire.
     Due to water, cyclone, floods etc.
     Due to vehicle accident.

2.1 Shortage Losses (Role of Surveyor)

• Reason of shortage to determine.
• FIR lodged of accident /theft.
• To investigate the reasons of shortage.
• To exclude normal transit loss of any.
• To carefully study the documents such as invoice & other G. R/ R. R etc. and ensure their gauntly.
• To verify the facts from witness/incidents.
• Shortage certificate by carries, part trust etc.
• Notice to loss, shortage.
• Estimate the loss as per qty, rate, cost etc with evidences.

2.2 Loss Due to Accident (Role of Surveyor)

• Copy of FIR of accident on road.
• If floods rain then proof in shape of newspaper entry, metrological report.
• If fire loss then FIR report.
• A & K for documents such as invoice, packing list, B/L, B/E, payment proof such as L.C.
• Verify G. R/ R. R/ Airway bill/ B/L etc and its
• Identify the with identification numbers.
• Segregate the consignment as per condition, full, partially, water affected.
• Quantity the loss condition wise.
• Take offer for salvage for salvageable goods & determine salvage either himself , quotation, tender process
• To value the loss as per basis of insurance i.e. CIF or C&F or FOB Basis.
• To see the claim lodged
• To obtain certificate of shortage

3.0 How to Conduct the Survey

On receipt of intimation the surveyor has to obtain the details of loss & location & policy.

To visit the site as soon as possible (prompt action to avoid increase in loss) e.g. Bacteria, Fungus loss could increase due to delay.

To discuss with insured at site,

To arrange for Photographs / Videography.

To inspect the subject matter under loss at discharge of Cargo /Overseas Cargo

Stocks
Machines etc.
Equipments etc.

Stocks

• To conduct the inventory of damaged stocks & segregate condition wise at warehouse /discharge time.
• To note the identification number of items, so identify/ differentiate.
• To determine the extent of damages.

Total Partial

Fire, Water heat affected to determine the salvage, for example CPT, News Print, Auto Parts etc.

• To consider it as total loss basis if segregation of each item is not possible and salvage value could determined.
• To call for various document, evident related to subject matter/ loss item and examine then visa-vis the physically inspected item of loss.

In order to determine the following:

• Who is consignor.
• Who is consignee.
• Name of insurers.
• Policy No., period of Policy, Transit sum insured, basis of coverage and clauses ABC.
• Invoice No. dt., & packing list no’s.
• To know the date of receipt of consignment at warehouse/destination.
• To know the date of loss.
• To see the type of packing.
• To know the cause of loss.
• G. R. / L. R./ R. R details.
• To see claim against carries has been made in time prescribed under the respective acts.
• Extent & type of loss.
• To quantify the loss.
• To do the valuation of loss/salvage value and to see the valuation/assessment.
• To see the valuation/assessment VS Policy coverage VS subject to matter physical loss identification.
• To verify damage certificate has been issued.

In Short we Summarise

Do’s

The Role surveyor is :

• To establish & identify the consignment damaged VS records.
• To Establish cause of loss or damage.
• To Assessing the degree and extent thereof.
• Making suitable recommendation for minimizing or making good the loss.
• If necessary to assist in recommending the best salvage value.

Don'ts

• It is not the function of survey or in marine to express an opinion on question of insurer’s liabilities.
• The surveyor does not adjust or work out the claim payable normally.
• His role is to determine the cause & extent of loss or damage and to assist in minimizing the loss in the interest of all

5.0 Time Limit for Intimation, Suit Filing Against Carriers