How to file claims when your cargo arrives at port of destination damaged.

1. YOUR CARGO
ARRIVED DAMAGED!
HOW TO FILE CLAIMS
LOGICAL MARITIME SERVICES LIMITED www.logicalmaritimegh.com

2. Don’t procrastinate. Take immediate action! You may have fewer
than 3 days.
This is a step-by-step guide to making the insurance claims process
as simple and painless as possible. If your shipment arrived damaged
during the importing process, following these relatively easy and
practical steps will protect your financial interest and maximize your
chances of successfully collecting on your damage claim against
any carrier.
Because you are obligated to help your insurance company
determine who is responsible for the loss, you must take the
following precautions immediately!

3. 1) Note exceptions!
Make a note on the truck waybill / delivery order in as much
detail as possible. For example, if you see damage to your
shipment: “10 cartons crushed with holes and water damage,
some dried and some still damp, content exposed.”
2) A Picture is Worth a 1,000 Words
The old adage still holds true. Grab your smartphone and start
snapping some pics of your cargo. Try to get as much detail as
possible. Even taking videos to describe what you see is great
evidence as well.

4. 3) Keep the evidence
Do not discard damaged goods, packaging, and / or container
seals until a surveyor has had a chance to investigate the loss
or until you’ve received confirmation from your insurance
company that it is suitable to do so.
4) Perform salvage!
Importers are obligated to limit the damages; segregate the
good stuff from the bad. In other words, do not let water
damage spread to otherwise undamaged cargo. If only the
outer packaging is wet and damaged, salvage the content and
repack it. Keep the old packaging!

5. 5) Put everyone on notice!
Immediately send everyone involved in the supply chain a
notice that your shipment arrived damaged, even if you do not
know the total extent of the damage. Doing this extends the
time frame allowed to get the actual claim processed and
submitted.
If this is not done, the carrier(s) is within its right to deny the
claim, pending timelines laid down in their terms and
conditions. By doing this, you are, in effect, reserving your right
to possibly file a claim at a later date. Download and complete
a “preliminary claim form” on letterhead and send it to the:

6. Trucker that delivered the cargo
Warehouse where it was picked up
Exam site, if the shipment had been examined
Ocean or air carrier that transported the goods
Freight forwarder that arranged the transportation
The supplier that you purchased the cargo from, because you
never know! There may have been a note about an issue when
the goods were initially picked up!

7. If purchased under the Cost, Insurance & Freight (CIF) terms of
sale, and the supplier hopefully fulfilled his obligation and
arranged for insurance coverage with a reputable firm and
should at this point provide you with the contact details of that
insurance company to process the claim.
(Forget about putting Customs on notice for damages that may
have occurred during an exam; they are not liable for anything.)

8. 6) Notify the insurance company
Hopefully, you protected your investment and obtained cargo insurance,
either by yourself or through your forwarder. They should be notified
right away. The insurance company will demand that you take the above
steps as well, or they will have grounds to deny the claim!
Then, they may dispatch a surveyor to visit your facility to gather as
much evidence about the loss as possible, in order to properly
determine how much to pay out, but also to give them the chance to
push other parties in the process to be responsible for parts of the loss.
Keep all physical evidence until the surveyor or insurance company
confirms, in writing, that it can be destroyed.

9. 7) Tally up your loss
Calculate the actual loss to prepare the final claim against the insurance
policy or, if not insured, to start filing the claim against the carrier(s)
directly. Remember to include the cost of freight, duties and taxes
proportional to the loss as well.
8) Complete the claim
Complete Claim form.
Gather all the supporting documents as outlined
Submit the claim
Then, simply send it to the insurance company and they will handle it
from here. They will settle with you under the terms of the policy and go
after the carriers to cover their losses.

10. If your vendor arranged the insurance they should have provided details
of the insurance company’s local agent and possible surveyor for you to
speak with. Remember, you are subject to the terms and conditions,
including any deductibles that were originally negotiated by the vendor.
However if your shipment is not insured, this is where the “real fun”
starts:

11. Send the claim to the same folks with whom you filed the preliminary
claim form.
Each party will do its own investigation and either deny the claim or
settle it under their limit of liability, if it can be proven that the damage
occurred while the cargo was under their care. Be aware that they may
deny the claim for a host of possible valid reasons: insufficient
packaging, inherent vice, etc.
Note that this process can take months and, in some cases, years. Keep
following up.

12. The liable party is usually determined by examining the various delivery
documents that are signed by each party (including waybills, delivery
orders, and bills of ladings) as the shipment is handed over between
truckers, warehouses, air or shipping lines as your cargo moves from
origin to destination.
It is assumed that any damage must have occurred in the custody of the
first party that was handed back a signed “received” delivery document
with damages noted on it.
If your shipping/receiving department blindly signed the waybill without
making notes then they are saying, in effect, that the goods arrived in
“good order and condition.” The carrier (and the insurance company)
would then be able to deny any liability and reject your claim outright!

13. Good luck as you sail down the perilous river of claims processing!
P.S. If you file a claim with any of the major carriers (such as UPS, FedEx,
DHL, etc.), their first response will most likely be to reject immediately,
putting the burden on you to be persistent. If this happens, go right
back with your evidence. If the 2nd time doesn’t work, the 3rd time, as
the old adage goes, might be the charm.
Source:
www.flexport.com