Marine Insurance Claim Procedure in India and Required Documents for Claim Settlement

Marine Insurance Claim Procedure – An Introduction

1. Care to Minimize the Loss:

Corrective measures are the first step to be taken during the event to minimize the impact of loss or damage to goods. Reasonable care from the insured is one of the conditions in the marine insurance policy. It’s important to ensure the safety of carriers and third parties involved in the marine activity.

2. Approach the Insurer and Notify:

Immediately intimate the insurer about the loss or damage to goods along with the details of the incurred event. If the marine insurance policy was purchased through a broker or an agent, immediately inform them to understand the further course of action. The insurer will check if all the safety measures needed were taken while transporting the goods or not. This makes it easy for you to proceed with the claim. Once you place the claim, collect the formal acknowledgement from the insurer.

3. Inform the Shipping Company:

Simultaneously, it’s also important to inform the shipping company of the loss or damage of goods. In this case, also, formal acknowledgement is required to be received. It’s also important to ensure the facts of events are accurately and properly conveyed to the shipping company and as well as to the insurer. In case of non-delivery and theft, FIR also has to be lodged compulsorily.

4. Detailed Survey:

Upon receiving the claim notification, the insurer appoints a surveyor to do a site investigation at which loss or damage took place. Post his site examination, he is required to submit his findings to the insurance company. The insurance company’s further claim procedures will be based on the findings of the surveyor.

5. Submission of Documents on Time:

Immediate notification of loss or damage of goods and filing the claim makes it easier for investigation and to speed up the claim process. In most cases, there is a time limit of one year is given to file a suit against shipping companies from the date of discharge of goods. The time limits may also vary among insurers. Because placing the claim on time with all the necessary documents makes the marine insurance claim process hassle-free.

Documents Required for Marine Insurance Claim Settlement

1. Original marine insurance policy or certificate – this evidence of insurance is the main document to get the claim settled. This carries all the details such as policy number, cargo details, and other terms and conditions applicable to the policy.
2. Copy of bill of lading – This particular document issued by the shipper to the carrier provides every detail of shipments such as type, the number of goods, and its destination.
3. Survey report or certificate including the detailed findings made on site.
4. Commercial invoice and packing list along with weight notes or shipping specifications – purchase price of the goods can be established from commercial invoice. The packing list along with weight notes gives a breakdown of shipments made. Confirmation of term of sales makes it certain about the application of insurance interest.
5. Copies of all the correspondence exchanged with the insurance company and shipping company.
6. Claim bill.

Also Read: What are the Special Features of Marine Insurance Policy In India

Additional Documents Required for marine Insurance Claim Settlement

Depending on the nature of the claim and other claim circumstances, some of the additional documents mentioned below may require to be submitted.

• Consignment note
• Container damage report
• Vessel outrun report
• Tally sheets
• Carrier’s written confirmation of non-delivery of goods
• FIR (first investigation report) from the police department in case of theft