HULL CLAIMS AND CARGO CLAIMS

HULL CLAIMS: - Following any case of hull or machinery damage e.g. due to collision or grounding, the ship owner manager’s insurance department will normally immediately inform via the broker, the lead hull and machinery insurer. The lead underwriter will then instruct a surveyor to ascertain the nature, cause and extent of damage, necessary repair and fair and reasonable cost thereof. The lead underwriter will make a decision with respect to any claim within 28 days of their receipt of the average adjusters final adjustment or if no adjuster is appointed, a full document claim presentation sufficient to enable the underwriter to determine their liability in relation to coverage and quantum.
The underwriter is discharged from liability of the claim, if he is not notified within 180 days of the assured becoming aware of the occurrence.
          Documents generally required for processing of claims are:-
1) Policy/ underwriter documents
2) Survey reports with photographs
3) Claims intimation letter by the insured with respect to the claim
4) Log book
5) All applicable valid certificates
Apart from above standard documents some other documents based on the nature of claim are as follows:-
1) Deck and engine room log books covering the casualty, and, if possible the repair periods. Master/ Chief engineer detailed report and/or note of protest, as relevant.
2) Underwriters’ surveyor report and account.
3) Class surveyor report and account
4) Superintendent’s report and account
5) Receipted accounts for repairs and/or any spare parts supplied by owner, in connection with repairs, endorsed by underwriter surveyor as being fair and reasonable.
6) Accounts covering any drydocking and general expenses
7) Accounts for all incidental disbursements at the port of repair
8) Details of fuel and engine room stores consumed during repair period together with the cost of replacement
9) Accounts of owner’s repairs effected concurrently with damage repairs.
10) Copies of faxes/ e-mails sent and details of long distance calls made in connection with the casualty.
11) Details of dates of payments of all account.
CARGO CLAIMS:-
      Where cargo loss or damage is discovered by the receiver or consignee, a delivery note or consignment note will be clause with the note of the loss or damage. The cargo owner will immediately inform his insurer. If the loss is extensive the underwriter will normally ask for a surveyor report. The timeline to file the claim depends upon the insurance companies to insurance companies and is written in the clause.
           Documents generally required to furnish the claims are:-
1) A proper duly filled claim form along with policy certificate.
2) Photographs and/or video film of insured damaged property showing the extent of damage
3) Sale contract or commercial invoice for the entire shipment
4) Original bill of lading
5) Surveyor report together with a duly paid surveyor fee bill
6) Packing list for the entire shipment
7) An authentic certificate of origin
8) Custom transit declaration
9) Claim notification letter to company together with Xerox copy of the policy and premium receipt
10) Letter of subrogation cum undertaking
11) Claim bill
After the claim is quantified and documented, the underwriter settles the claim. The underwriter then decides (under the doctrine of subrogation) whether or not the claim is worth pursuing against the carrier. If he decides to pursue the claim, he immediately makes a written claim on carrier. The claim is settled by the carrier in the currency stated in the policy. The carrier then claims on his P&I club for reimbursement. But P&I club requires following documents from ship to settle the claim by the claimants:-
1) Bilge, ballast and bunker sounding and pumping record
2) Cargo ventilation, humidity and temperature record
3) Records of any unusual weather condition
4) Records of hatch, access, hold and watertight doors check
5) Records of fire and safety equipment check
6) Records of cargo securing and lashing
7) Records of cargo temperature(heating or cooling) where applicable
8) Records of inert gas and venting operation as applicable
P&I clubs stress the importance of keeping record in order to help defeat cargo claims by cargo insurer.