
First you would alert your insurer with the details on the loss or damage. The insurer would then appoint an independent surveyor to assess the claim and may invite the vessel operator or carrier to participate in the survey. If it’s found to be a valid claim, the insurer would reimburse you for the value of the cargo plus the cost of freight shipping.
Typically, after the claim is paid the insurer will seek compensation from the vessel operator or carrier (subrogation) for damage resulting from its negligence. But any legal wrangling that may occur during the subrogation process happens after you are paid.
Reporting a marine insurance claim involves several steps designed to ensure that the insured party can recover losses efficiently while providing the insurer with all necessary documentation and evidence to assess the claim. The following outlines the key stages of the claim reporting and processing procedure.
Immediate Notification to the Insurer
The first step in reporting a marine insurance claim is to notify the insurer or the insurance broker as soon as possible after an incident occurs. This notification should be done in writing and include essential details such as the nature of the loss, time and date of the incident, and the location of the event. Quick reporting helps prevent delays in the assessment and processing of the claim.
Collecting Evidence
After notifying the insurer, it is crucial to collect comprehensive evidence to support the claim. This evidence may include:
- Survey Reports: Engage a certified marine surveyor to inspect the damage. The surveyor will provide a report detailing the extent of the damage and possible causes.
- Incident Reports: Gather any reports from the port authority, police, or other relevant bodies that documented the incident.
- Photographic Evidence: Take clear photographs or videos of the damage or loss. Ensure these images accurately depict the extent of the impact.
- Witness Statements: Collect statements from any witnesses present at the time of the incident.
Submitting a Claim Form
Once the necessary evidence is gathered, fill out a marine insurance claim form. The form will require specific details, including:
- Policy number and insured party’s contact information
- Description of the incident, including causes and impact
- Details of the loss or damage, such as the value of the goods lost or extent of hull damage
- Supporting documentation, such as invoices, receipts, or proof of ownership for cargo claims
Attach all the evidence collected to this claim form. Submit these documents to the insurer or the broker managing your policy.
Surveyor and Loss Adjuster Evaluation
Upon receipt of the claim form and supporting documents, the insurer will appoint a marine surveyor or loss adjuster to investigate the claim. The surveyor will review the submitted evidence, inspect the damage, and prepare a detailed report for the insurer. This step ensures that the claim is valid and that the damages align with the policy coverage terms.
Assessment and Decision
The insurer will assess the claim based on the surveyor’s findings, the policy terms, and the supporting evidence provided. The insurer will verify that the loss falls under covered perils and that all documentation is in order. If necessary, the insurer may request additional information or clarification from the insured party.
Settlement or Denial of the Claim
If the insurer finds the claim valid, they will calculate the compensation amount, taking into account policy deductibles and limits. The compensation will then be paid to the insured party. If the claim is denied, the insurer must provide a written explanation detailing the reasons for the denial. Common reasons for denial include insufficient evidence, exclusions outlined in the policy, or failure to report the claim in a timely manner.
Appealing a Denied Claim
If the claim is denied and the insured party disagrees with the insurer’s decision, they may file an appeal. This process typically involves presenting additional evidence or requesting a review by an independent adjuster or arbitrator.
Timely and thorough reporting, combined with proper documentation and evidence, is crucial for a successful marine insurance claim.