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Marine Cargo – Claims Guide

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Marine Cargo – Claims Guide United Insurance Brokers Ltd Cargo claims guide 2020 United Insurance Brokers Ltd Marine Cargo CONTENTS Introduction ................................................................................................................................................................3 Our service ..................................................................................................................................................................4 General ..........................................................................................................................................................................6 Prompt Reporting ................................................................................................................................................................6 Duty of Assured and Liability of Carriers, Bailees or other Third Parties .........................................................6 Documentation (General Cargo) ....................................................................................................................................7 Documentation (Bulk Cargoes (Oil/Gas/Liquid/Dry Commodities and Similar) ...........................................8 Delay in Start Up Insurance (DSU) ................................................................................................................................9 General Average ...................................................................................................................................................................9 General Average Documentation ................................................................................................................................ 10 Salvage ................................................................................................................................................................................. 10 Guideline time frames for presenting Claims on Carriers ......................................................................11 Incoterms ..................................................................................................................................................................12 Sample Notice of Claim against Carrier ........................................................................................................14 Sample Letter of Indemnity Wording ............................................................................................................15 Sample Payment Authority Wording .............................................................................................................16 Subrogation .............................................................................................................................................................17 Dictionary of useful Marine Cargo Terms .....................................................................................................19 2 Marine Cargo claims guide | 2020 United Insurance Brokers Ltd Marine Cargo Introduction Welcome to our Marine Cargo claims guide. We hope this will serve as a useful reference guide for you. Trade is far from simple A question The complexities of an insurance transaction that are What do you buy when you take out an insurance covered in a few words in the insuring terms are only policy? The transfer of premium should always lead ever truly tested by claims. UIB’s acknowledgement to the efficient payment of any recoverable loss. of this drives us to offer a complete claims service. UIB’s Marine Claims Division provides this service We appreciate that the standard and level of service to our clients. we provide is of paramount importance. UIB London understands this and has built its entire business culture UIB prides itself in offering a claims service that can around claims service. support our clients in all activities globally. Claims are our shop window. We readily acknowledge that one We aim to have detailed discussions with clients of the main reasons for you, the client, purchasing to implement the structures that will assist in seamless insurance cover is the knowledge that in the event claims handling. We appreciate that the co-ordination of a claim, matters will be handled in a prompt, between many parties is often critical to the provision “no nonsense” and professional manner. of this service and have built our team in London accordingly. UIB takes pride in the fact that we are able to provide a professional and prompt claim service. Marine Cargo claims guide | 2020 3 United Insurance Brokers Ltd Marine Cargo Our service It is our goal to offer a complete service to facilitate in the efficient settlement of claims and recoveries to: Integration into the team 1. Support your customer relationships The UIB claims team is a vital part of the service provided. All members of the marine cargo division have undergone 2. Protect your cash flow and continually undergo training on all aspects of 3. Produce management reports, if required claims including conditions of carriage and exchanges/ amendments in applicable maritime law etc. The Understanding the principles and uniqueness of trade connection between claims and the insurance contract must be appreciated, explored and understood to provide underpins the service that UIB provides. a full service. The UIB claims culture has developed out of our desire to provide a complete service to our clients. It is critical that all aspects of the process of risk transfer are seamless and efficiently handled. UIB maintains the view that the claims service is at the core, so much so that Our Service falls into two main categories: it actively encourages the involvement of our claims team from the very start of negotiations with any prospective 1. Losses recovered under your marine cargo policy new client. 2. Losses suffered, but insured with a third party interest Responsibility Losses resulting from your insured purchases can We believe that the insurance transaction is not complete create an administrative burden. until all aspects have been finalised. We gladly accept the responsibility of working in partnership with our clients to UIB is staffed to provide a claims service in this aid in the speedy, efficient and stress-free conclusion to regard. any claim and. We endeavour to respond to/acknowledge receipt of your claim on the same working day that it was presented whenever possible. So many terms exist that allude to the service the insurance community provides. We do not propose to examine these in detail, more importantly we hope to demonstrate that our expertise carries a value that extends beyond the competitive arena of achieving coverage at the least cost. UIB offers solutions to all aspects of insurance buying. Through a process of continuous training with industry experts UIB has built a team of senior claims professionals whose advice is respected not only throughout the London market but also within many International markets. 4 Marine Cargo claims guide | 2020 The UIB claims culture has developed out of our desire to provide a complete service to our clients. United Insurance Brokers Ltd Marine Cargo General Prompt reporting Duty of assured and liability of carriers, bailees(1) or other The global insurance markets have developed protocols for the handling of claims and responsibilities of each third parties party. Cargo insurance has clearly defined these and the major markets act in concert. Within this document It is the duty of the Assured and their Agents, in all cases, we provide a commentary on what is required plus to take such measures as may be reasonable for the guidance notes. All should be aware that each insurance purpose of averting or minimising a loss and to ensure is an individual contract and could contain exceptions or that all rights against Carriers, Bailees or other third additional requirements – if in doubt please contact UIB parties are properly preserved and exercised. (Re)Insurers for further advice. will reimburse you for any expenses that are properly and reasonably incurred in pursuance of these duties resulting For all claims being advised under a cargo insurance from an insured peril. In particular, the Assured or their contract, prompt reporting of loss or damage is essential Agents are required:- in order to permit the appointment of a surveyor (if deemed necessary) or to take any other action felt 1. To claim immediately on the Carriers, Port necessary to assist in minimising the loss and handling Authorities or other Bailees for any missing the claim. packages. Unless the policy requires direct notification to your (re) 2. In no circumstances, except under written protest, to give clean receipts where goods are in doubtful insurers (refer to your policy conditions), then immediate condition. notification of a potential claim should be made to UIB. We, as your agent, will in turn promptly notify your (re) 3. When delivery is made by Container, to ensure insurers and communicate in writing any instructions that the Container and its seals are examined or comments your (re)insurers issue. We will continue immediately by their responsible official. If the to communicate with you and diligently pursue claim Container is delivered damaged or with seals broken settlement on your behalf from (re)insurers. or missing or with seals other than as stated in the shipping documents, to clause the delivery receipt For a full list UIB claims and placing contacts, please refer accordingly and retain all defective
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