2. SHIP DAMAGE CLAIM

3. Constructive Total Loss
A situation where the actual total loss appears unavoidable or a partial loss has occurred to an extent that the ship/property is beyond economic repair (cost of restoring it exceeds its insured value).
In CTL cases the insured may abandon the ship/property by giving a notice of abandonment to the insurer who then assumes all right to the ship/property.

4. Actual Total Loss
Loss that occurs when insured property is 1) totally destroyed, 2) is so damaged that it is no longer the thing that was insured, 3) is useless/not fit for the purpose for which it was bought or 4) mysteriously disappears.
No notice of abandonment may be required to be given to the insurer

5. Increased Value Clause
Increased Value cover is a specialized policy to protects the shipowner against any difference between the insured value of the vessel and the market value of the vessel.

6. Insurable Interest Clause
It is a legal term/clause in the Marine Policy General Provision (Cargo) which states that
In order to recover under this insurance the
Assured must have an insurable interest in the
subject-matter insured at the time of the loss.
Otherwise it is not enforceable.

7. Insurable Interest Clause…cont
2. Subject to 1 above, the Assured shall be entitled to recover for insured loss occurring during the period covered by this insurance notwithstanding that the loss occurred before the contract of insurance was concluded, unless the Assured were aware of the loss and the Underwriters were not.

8. CARGO CLAIM-PROCESS & DOCUMENTATION

9. Cargo Claim
The written notice of loss must be provided to the carrier or carrier's agent at the port of discharge. If the loss or damage can be readily seen, the written notice must be provided before or at the time of removal of the goods into the custody of the person entitled to delivery.
If the loss or damage is not apparent, written notice must be given to the carrier or carrier's agent within three (3) days of delivery.

10. Cargo Claim
Failure to provide such notice is not fatal to a claim, but it does create a presumption that the goods were delivered in good order & condition. On failing to give timely notice, a claimant must then overcome the burden by demonstrating that the damage occurred before delivery.
The carrier must be given an opportunity to investigate the circumstances of the loss or damage;
To avoid fraudulent claims.

11. Cargo Claim Process & Documentation
Make immediate inspection of each package before signing delivery receipt.
Take proper exceptions on the delivery receipt in respect to all loss or damage existing at the time of taking delivery.
It is most important that exact exceptions be taken in writing on the delivery receipt as to the conditions of the consignment and a copy of the delivery receipt must be retained for your claim file.
Take photographs where applicable.

12. Cargo Claim Process & Documentation…cont
Contact a surveyor to assess the loss/damage
immediately.
The consignee should promptly notify a surveyor as soon
as loss or damage is discovered.
The consignee should refer to the back of the original
certificate or call the Insurance company for a surveyor
in their area.
They may also use any surveyor who is approved by
Lloyd's of London or the American Institute of Marine
Underwriters.

13. Cargo Claim Process & Documentation…cont
Surveyors are neither settling agents nor affiliated with
the insurance company.
Rather they are independents who report the facts to the
insurance company and have the responsibility to
determine the amount of loss.
Usually the insurance company will pay surveyors
directly for their services. However, in situations where a
surveyor requires up-front payment, the insurance
company will reimburse the claimant.
Contact the Insurance Company immediately.
In addition, a letter notifying the Insurer of the claim is
required.

14. Cargo Claim Process & Documentation…cont
Verify that the seal numbers on marine containers match the document numbers.
Also be alert when a seal is broken to the possibility that cargo may have been pilfered.
Retain all products and packing until you are advised otherwise by the Insurance Company.
Notify delivering carrier of any shipment damage immediately and have a representative come out to inspect and write a damage report.
Write to all carriers placing them on notice of claim. There are statutes of limitation to notify the carrier of loss, damage, or non-delivery.

15. Cargo Claim Process & Documentation…cont
Retain all copies of the shipping documents. Generally the following documents will be required to settle a claim:
1. Proof of Insurance: Declaration Form or Original
Certificate
2. Commercial Invoices
3. Non-negotiable copy of bill of lading or air waybill (front
and back)
4. Claim Statement (an itemization of loss/damage
claimed).
5. Copy of letter(s) to carrier(s) giving notice of claim.

16. Cargo Claim Process & Documentation…cont
6. Carrier's reply(s) if any.
7. Delivery receipts with exceptions noted.
8. Photographs (when applicable).
9. Survey report (when applicable).
10. Packing List.
11. Repair estimates (when applicable)
Additional documents may be requested at a later date.

17. Cargo Claim Process & Documentation…cont
Although there are no statutory requirements for the contents of written notices, shippers /consignees should provide the following details to the carrier or its agent:(1) Name of Shipper(2) Name of Consignee
(3) Bill of Lading Number (copy of bill of lading)
(4) Vessel Name and Voyage
(5) Date shipment Delivered to Carrier
(6) Place of Delivery
(7) Port of Loading
(8) Port of Destination

18. Cargo Claim Process & Documentation…cont
(9) Description of Goods
Description of Goods Lost or Damaged
Brief Statement of How The Goods Were Lost or
Damaged
(C) Damage Amount, if known
 The notice of damage may be simply written on the bill of lading or on the receipt upon delivery. This process is known as "taking exceptions."
Separate written notice should be sent by certified or registered mail, return receipt requested or via courier to the carrier or its agent, to the forwarder, and to all involved.

19. Cargo Claim Process & Documentation…cont
Written Notice To Cargo Underwriter. Do not forget to notify the marine cargo insurance underwriter in writing immediately. Such notice is a requirement of your insurance policy. Failure to notify your insurance company may invalidate your claim. Failure to timely notify the carrier of loss or damage may invalidate your insurance claim. Read your insurance policy with great care, before shipping the goods.

20. Cargo Claim Process & Documentation…cont
Preserve The Evidence: It is highly suggested that no sale/salvage occur until BOTH the carrier and the cargo underwriter have had a reasonable opportunity to inspect. Take photos of your cargo. Retain all packing material. Throw nothing away.

21. R0LES & RESPONSIBILITIES OF SURVEYORS & ADJUSTERS

22. Role & Responsibilities of Surveyors
Specialized role on cargo survey on various means of conveyance, i.e. ocean vessels, barges, containers, trucks, as well as airfreight. Role and responsibilities are:
the survey and inspection of all kinds of transport- and cargo-damages
the calculation and assessment of cargo-damages

23. Role & Responsibilities of Surveyors…cont
the checking and supervision of necessary reconditioning treatments
the best possible salvage sale of damaged goods
the supervision of loading and discharging actions incl. documentation
the surveillance of packaging, transportation and the condition of means of transport
the issuing of statements of condition
all kinds of loss-prevention consultation

24. Role & Responsibilities of Cargo Adjuster
Evaluates and settles household goods and non-household goods claims up to a specified dollar amount for all lines of business. 
Demonstrates higher dollar level decision making authority and takes initiative to consider settlement options outside of the standard claims settlement guidelines. 

25. Role & Responsibilities of Cargo Adjuster…cont
Evaluates claims for reasonableness, necessary action, liability, and compliance with federal regulations, operating tariffs, contract provisions, claims policies, and standard claim practices and procedures. 
Investigates and gathers information necessary to allocate settlement to the responsible parties. 
Performs extensive communication with agents, shipping customers, installations, government bureaus, national account contacts.

26. THANK YOU