Paying for the accidents
As soon as loss or damage is discovered, the policyholder or his representative must :
a) record reservations on the delivery note;
b) confirm these reservations by registered letter to the carrier and request him to prepare an expert report. It will therefore be necessary to indicate the day and time of the report;
c) notify the insurers or their representatives about the loss or damage, as soon as possible. It is also important to notify the broker or his correspondent in the same way;
d) state the true course of events and the importance of the losses to the expert or the organisation representing the insurers;
e) following the accident, ensure that the goods are handled correctly.
It is the policy holder or his representative, who is in charge of collecting the elements which prove the claim. He will have to create an accident file containing :
1. the insurance policy;
2. the transport document including the possible reservations;
3. the packing list;
4. the survey report explaining the cause of the damages;
5. loss or non-delivery certificates;
6. the invoices, along with the numbers of the claim;
7. copies of the reservation letters sent to the carrier and the replies.
The insurer verifies the conditions in which the damage happened, the elements of the case and pays the amount of compensation depending on the policy's clauses and the supporting documents produced by the policy holder. Afterwards, if necessary, the insurer investigates the responsibility of the carrier or the forwarding agent, who will, up to the limits set by international convention, pay the compensation unless they can prove themselves free of responsibility.
In case of general average, each of the policy holders pays a contribution for the damage caused.
After calculation of the final distribution (known as " claim adjustment file ") of the costs on different deliveries, the insurer pays the contribution to the general average.
Transport insurance contract
Principle
The parties establish the terms and conditions of the cover freely. Generally, these refer to typical contracts. In the case of conditions not included in the policy, it is usually the laws of where the underwriting has taken place that apply. Furthermore, if specific clauses are included, these will always prevail on the general and conventional conditions.
The elements to be included in the policy
1. The nature of the chosen guarantee, i.e. : the extent of the guarantee required.
2. The location of the risks , that is, where do covered risks begin and end.
3. The time of the risks : this notion covers the length of the guarantee which must match that of the journey.
4. The nature of the merchandise : description of the merchandise, its packing, container, ...
5. The method of transport.
6. The insurance value : this value is the basis for the calculation of the insurance premium and sets the limit for compensation in the case of an accidental event. It usually corresponds to the cost of the goods at their destination augmented by between 10 and 20 % (to include expected profit or the costs of a new delivery).
