How to insure and settle claims for goods in international sea freight

Mondo Finance Updated on 2024-02-01

How to insure and settle claims for goods in international sea freight In the international **, sea freight is a common mode of transportation.

However, due to the uncertainties and risks of shipping by sea, the goods may be subject to loss or damage during transportation.

Cargo owners usually choose to insure their goods to protect their interests.

1.Choosing insurance methods and insurance companies, shippers can choose different insurance methods, including "door-to-door" transportation insurance, "warehouse-to-warehouse" transportation insurance, and "water barrier transportation insurance".

Each type of insurance has its scope and conditions.

Cargo owners should also choose a reliable insurance company to insure.

2.Fill out the insurance policy and pay the premiumThe owner needs to fill out the insurance policy before applying for insurance, detailing the type, quantity, value and other relevant information of the goods.

Depending on the value of the goods and the type of insurance, the owner of the goods needs to pay the corresponding premium.

The calculation of the premium is usually based on a percentage of the value of the goods.

3.Claim Application and Data PreparationIf the goods are lost or damaged during transportation, the cargo owner needs to submit a claim application in time.

In the claim application, the cargo owner needs to provide relevant supporting materials, such as shipping documents, cargo lists, insurance policies, etc.

The owner of the goods shall also retain evidence such as ** or ** of damage to the goods.

4.Claims Investigation and Damage AssessmentThe insurance company will conduct a claims investigation and damage assessment, i.e. verify the cause, extent and value of the damage to the goods.

Usually, the insurance company will send professional personnel to the location of the damage to the cargo to verify the accident and understand the accident through communication with the cargo owner, the carrier and the relevant authorities.

5.Claim processing and compensationAfter verifying the loss, the insurance company will handle the claim according to the agreement of the insurance contract.

Depending on the actual value of the goods and the amount insured, the insurance company will pay the corresponding compensation amount.

The owner of the cargo can choose to pay the compensation amount directly to himself or enter into an agreement to use the compensation amount to repair the goods.

In addition to claims for loss or damage to cargo, there are other cargo-related issues in international ocean freight, such as cargo delays, lost cargo, and port strikes.

For these issues, cargo owners can solve them through consultation with the carrier and relevant authorities.

If the negotiation fails, the consignor may choose to protect its rights and interests through arbitration or litigation.

Insurance and claims settlement of goods in international shipping is an important means for cargo owners to protect their rights and interests.

When choosing an insurance method and insurance company, the cargo owner should make a reasonable choice according to the characteristics of the goods and the needs of transportation.

During the claim settlement process, the cargo owner needs to submit a claim application in a timely manner and provide relevant supporting materials.

The insurance company will conduct a claim investigation and damage assessment, and compensate according to the insurance contract.

Through reasonable insurance and timely claim processing, cargo owners can effectively reduce the risks and losses in the process of cargo transportation.

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