DOCUMENTATION TO SUPPORT CLAIMS

EX : Ship, Air port, Multi-modal Transport

1. Documents generally required for settlement of various types of claims are as under

1.1 General:

a) Original insurance policy/declaration under the open policy duly endorsed by the insured. A letter of indemnity may be furnished if the original is lost.
b) Original or a signed copy of sale invoice along with packing list wherever available.
c) Signed copy of Bill of Lading (in case of sea voyage)/ Air Consignment Note (for air cargo/MTD/CTD (for multi-modal transport)/postal receipt for sending by post.
d) Triplicate or exchange control copy of Bill of Entry (to facilitate verification of the date of filing to ascertain whether there has been any delay and also to check duty payment details).
e) In case of General Average, G. A. Guarantee and Counter Guarantee or original Cash Deposit Receipt with Letter of Transfer as the case may be. Reference is made to the separate para on G.A.
f) Letter of Subrogation duly stamped and executed (only where recovery from carriers/other third parties is possible).
g) Special Power of Attorney (wherever recovery from Railway/other carriers is involved. In other cases as required)
h) Lost Over board Certificate where loss has taken place during loading/unloading.
i) Copies of claim notice served on carriers and correspondence exchanged with them along with the Registered A/D cards or any other valid evidence of service of claim notice within the statutory time limits.

1.2 In case of short-landing/non-delivery of complete consignment:

Full set of original Bill of lading/Air Consignment Note/Postal Receipt, etc. as applicable endorsed in favor of insurers. The carrier confirming short landing/non-delivery of the entire consignment by them or with a separate short-landing/non-delivery certificate should endorse the original contract of affreightment. An undertaking to be obtained from the claimant that he would take delivery of the cargo, if traced, under an insurance survey.

1.3 In case of partial non-delivery/short landing:

Non-delivery and/or landed but missing certificate from the sea-air/CTO carrier/postal authority/Port Trust, as applicable.

1.4 In case of partial loss or damage:

a) Assessment report by sea/air/CTO carrier/postal authority
b) Survey Report of independent surveyor (if survey has not been waived)
c) Claim form/claim bill

1.5 In case of a consignor’s claim to be settled in India for export shipment, Banker’s Certificate confirming non-receipt of export proceeds in India in an approved manner.

1.6 Non-delivery (short landing or landed but missing)

1.6.1 Specific documentation – The claimant should be requested to apply for either short landing certificate or landed but missing certificate from the port authorities or the steamer company within the period allowed under statue/Port Rules. When the short landing or landed but missing certificate is obtained, the claimant should be asked to send notice to the carrier or the Port authorities. as the same may be for the value of the lost cargo (CIF value and/or duty and/or profit) and obtain their acknowledgement. A claim on the carrier or the port authorities should be accompanied by
a) Original of short landing or landed but missing certificate.
b) Copy of Bill of Lading
c) Copy of invoice

1.6.2 Individuals or agencies specialized in the work of tracing missing cargo should be engaged to trace the missing cargo of high values. Where such certificates are not forthcoming in time, notice to carriers and port authorities etc. must be served by the claimant within the statutory time limits for the value of cargo not received.

1.7 Total and/or constructive total loss

Where total and/or constructive total loss of the cargo has been caused whilst in the custody of the steamer company or port authorities :

a) Copy of valued claim on the carrier/port authorities (as the case may be) and acknowledgement thereof.
b) Notice of abandonment in case of C.T.L. to customs authorities
c) Open assessment/delivery certificate/ ship survey report.

1.8 Particular Average partial loss i.e. theft, pilferage, shortage and other damages (in cases where loss or damage is reported before clearance from the dock):

a) Steamer/port survey report
b) Customs examination certificate before clearance of consignment from docks.
c) Independent survey report.

As regards claim for shortage from externally sound cases, it is essential to ask claimants to refer the matter to their suppliers about the possibility of short packing at their end. Only on receipt of confirmation from the suppliers about correct packing as per invoice, further processing of claim on merits should be done. Surveyors should be asked to examine whether there was sufficient empty space in the case to hold the missing items or whether some foreign materials replaced the missing items by comparing the weight of consignment stated in the invoice/packing list with the package received at the destination in order to determine skillful pilferage in transit. It may also be checked as to whether the missing items had been extracted by Customs for examination or other purposes.

2. Claims under Duty and Increased Value Insurance Policy

In the case of certified short landing, no duty is payable. Claims other than short landing have to be scrutinized with due regard to the basis of duty insurance and may be authorized for payment for the actual value of the loss including the actual customs duty paid but not exceeding the proportionate insured value on duty.

2.1 As regard Increased Value Insurance, the claim would be payable for proportionate increased value insured under the policy as per the Increased Value Insurance Clause.

2.2 As provided in the duty insurance clause a claim under ‘duty‘ /increased value policy is admissible only if the loss is admissible in terms of the cover granted under the marine cargo policy covering the same consignment. This provision however need not apply to cases where the CIF is insured overseas due to contractual obligation. Further, if a marine claim is within the ambit of the policy conditions but declined by the Insurers for other reasons like non-compliance of Section 64 VB of the Insurance Act this will not affect the admissibility of the duty claim. Therefore the claimant is required to furnish to the company proof of liability for loss under the marine policy as per terms and conditions of the policy.

2.3 The other documents required are :

a) Original Insurance Duty Policy duly endorsed
b) Copy of Bill of Lading
c) Copy of Invoice
d) Bill of Entry
e) Survey Report
f) Copies of correspondence exchanged with customs/ carriers relating to the claim lodged with them.

3. GENERAL AVERAGE

In the event of the steamer company declaring General Average, the consignees will be called upon by steamer Agents to make a cash deposit before delivery of the consignment at destination. The consignees should be asked not to comply with this, without prior written concurrence of the dealing office. The concurrence can be given after ensuring that Lloyd’s form of bond or similarly worded form is used and the deposit to be collected by the Steamer Company would be credited into a properly constituted Trust Account jointly with the Average Adjusters.

3.1 In lieu of cash deposit, steamer companies often accept unlimited guarantee of the Insurance Company covering the goods. As far as possible the dealing office should arrange for the General Average Guarantee to be given as per prevailing financial order.

3.2 As soon as any intimation is received regarding GA and any request from the Insured for issuance of GA Guarantee is received. H.O-Marine Dept. should be intimated with full details.

3.3 Documents for General Average Claims :

a) Original policy or certificate of Insurance duly endorsed
b) Bill of Lading (signed copy)
c) Invoice (original or signed copy)
d) A copy of Notice declaring General Average by the Ship owner/Agent
e) General Average Deposit Receipt (GADR) on the original Lloyd’s Form new endorsed

(GADR indicates the name of the steamer, details of the casualty the Bill of Lading no the provisional net arrived, value of the Goods description of the goods, the name of the GA Adjusters, the amount of the deposit by the consignees, etc.)

3.4 General Average Guarantee and Counter Guarantee :

As an alternative to cash deposit, ship owners are willing to accept a Guarantee from a bank or, if the goods are insured, from the insurers. Insurers grant this Guarantee on behalf of the insured in terms of which they agree to pay the General Average Contribution. In such cases, a Counter Guarantee is obtained from the insured. The Counter Guarantee is required because the General Average adjustment may be based on a contributory value of the cargo, which may be higher than its insured value.

3.5 Letter of Transfer :

This letter is signed by the consignees whereby they

a) Surrender their rights in respect of the deposit paid to ship owners by the insurers;
b) Agree to transfer the deposit amount to the credit of the insurers;
c) Authorize the insurers to receive from the ship owners the difference between the amount of general average as adjusted and the amount of the deposit;
d) iv. Undertake to refund to the insurers any sum deducted by the ship owners from the deposit which may not be recoverable under the insurance policy; and
e) undertake to repay to the insurers, if the contributory value exceeds the insured value the proportion of general average applying to such value

If it is reported that the General Average act has included sacrifice of cargo, then the consignee should clear the damaged cargo only after the ships Surveyors conduct the General Average Survey.

4. CLAIMS ON CONSIGNMENTS BY RAIL/ROAD

4.1 Claims Documents (Rail/Road)

As in the case of sea/air/multi-modal transport/postal claims, the insured has to furnish evidence of (i) insurance, (ii) value, and (vi) loss.

The following documents are required to be submitted to insurers in support of claims under rail/road transit policies :

4.2 General documents :

a) Original policy or certificate of insurance duly endorsed.
b) Invoice (original or copy)/packing list/weight specification.
c) Independent Surveyor’s Report, if any
d) Letter of Subrogation (if recovery is possible)

4.3 Other documents depending on the nature of claim :

a) Original Railway Receipt (Non-delivery cases)
b) Copy of the Railway Receipt (damage claim)
c) Original Consignment Note (Non-delivery cases – Road transit claims)
d) A copy of the Consignment Note (Damage claim – Road transit claims)
e) ‘Non-delivery’ or ‘Partial delivery’ certificate from the Railways/Road Transport operators.
f) Open Delivery/Assessment Delivery certificate (Rail/Road)
g) Certified copy of the Remarks in the Railway Delivery insurance-education (Damage Claims)
h) Certified copy of the remarks in the delivery challan (Road Transit Claims)
i) Copy of
1) Notice of claim lodged on the carriers (Rail/Road)
2) Acknowledgement
3) Subsequent correspondence with the carriers
j) Special Power of Attorney (Rail Transit Claims)
k) Letter of Authority (Rail Transit Claims)

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