Marine Insurance Claims Process: Steps to File a Claim

• Policyholders can file a marine insurance claim to get compensation for goods lost or damaged during transit, subject to policy terms and limits.
• When you notice a loss or damage, report it to your insurer immediately and file a marine insurance claim.
• The claim procedure in marine insurance involves intimation, documentation, surveyor’s investigation, evaluation, assessment and resolution.
• To file a marine insurance claim, you need to submit your claim form, policy certificate, bill of lading, invoice, packing list and other documents.
• Ensure a smooth claim process by reporting your loss immediately, collecting sufficient evidence, and knowing your policy terms.

Marine insurance plans cover loss or damage to the insured cargo from a wide variety of risks, including accidents, fire, theft, damage during loading/unloading, water ingress and natural disasters. When a cargo loss happens, the policyholder is required to inform the insurer and file a claim seeking compensation.

After claim notification, the insured party must provide documentation, i.e., evidence of damage or loss, such as photographs, cargo details, vessel inspection reports, etc.

Insurers typically appoint a surveyor to inspect and assess the damage. The surveyor visits the location to determine the settlement amount based on policy terms and conditions and your incurred losses.

After verifying and processing your claim request, the insurance provider will determine the approved claim amount. The insurer will disburse the applicable amount directly to your bank account, resolving the claim.

Also Read: How Does Marine Insurance Work?

The following is a detailed description of the claim procedure under marine insurance and how it works:

Step 1: Notify the Insurer Immediately

Inform your insurance provider within the first 24-48 hours of the loss or damage by calling the customer care helpline or sending an email.

In addition to this, inform the relevant authorities, including the carriers, port authorities and bailees responsible for shipping.

Step 2: Initiate a Claim

Follow your insurer’s established claim procedure for marine insurance to file a claim request. If your insurer allows online claim filing, register your claim via their claim portal or mobile app.

Include essential information, such as the nature and extent of the damage, location and date, policy details, etc., as required.

Step 3: Submit Claim Documentation

Marine insurance claims require thorough documentation. After receiving your initial claim, the insurer will require supporting documents, such as cargo details, bill of lading, inspection reports, photographs or videos of damages, etc.

Submit these documents via mail or upload soft copies on the insurer’s online portal as per their set process. Then, you will get a claim number, which you can use for future reference and tracking.

Step 4: Claim Investigation

After receiving claim documentation, the insurer will start an investigation to assess the validity of your claim and the extent of liability.

This involves reviewing the submitted documents, on-site inspections, surveys, interviews and contacting relevant authorities. Insurers often appoint a surveyor whose job is to provide an independent assessment of the loss or damage.

Step 5: Evaluating and Settling the Claim

The insurer will review the submitted documents and surveyor’s report to assess the claim’s validity.

Then, they will decide the appropriate settlement amount based on the terms and conditions of your policy, including inclusions, exclusions, sub-limits and deductibles (if any).

Step 6: Resolution of the Claim

Once the claim is approved, the insurer will pay the applicable expenses covered under the policy. The approved claim amount will be credited to the insured person’s bank account.

Filing claims for marine policies requires several mandatory and supporting documents for verification and processing. Here are some of the required documents:

• Claim Form: A filled and signed claim form is required for any marine insurance claim.

• Insurance Certificate: This is the original policy or certificate of insurance issued at the time of policy purchase.

• Bill of Lading: It’s a critical document issued by the carrier to verify shipment details.

• Invoice and Packing List: This contains the original invoice for the shipped goods along with a packing list detailing the value of the cargo.

• Weight Note: It confirms the weight of the goods being shipped and cargo specifications.

• Proof of Delivery: This includes the freight forwarder’s delivery order, receipts, loading and discharge tally sheets, etc., confirming the delivery.

• Survey Report: It’s the official report created by the insurer’s surveyor.

• Customs Declaration: It’s a declaration certificate issued by the destination country’s customs department. This document is necessary for international shipments.

The insured person has some responsibilities to ensure a smooth claim settlement process in marine insurance. Here are the main responsibilities:

• Mitigating Damage to Your Cargo: Take all reasonable steps to prevent further loss and damage to your insured cargo.

• Reporting Your Loss Immediately: Notify the insurer as soon as you notice the loss or damage to avoid a claim rejection.

• Exercising Your Rights for Damages: Exercise your rights for damages and compensation by filing a claim with carriers, bailees and other third parties.

• Not Approving Any Damaged Cargo: Inspect the goods thoroughly and do not sign a clean delivery receipt if the cargo is damaged.

• Examining the Container: Check the seal number, condition of the seal, packaging and container and record evidence, if damaged.

• Gathering Evidence: Take photos and videos of the damaged cargo in all stages.

Here are some common reasons why insurers reject marine insurance claims and how to avoid rejections:

• Delay in Claim Notification: Failing to inform your insurer about your loss or damage within the prescribed timelines gives them grounds to reject your claim. Know the specific timelines in your policy documents and ensure there are no delays in communication.

• Errors and Omissions: Submitting incorrect personal or claim information, inadequate details, and filing a claim under the wrong policy are common causes of claim rejections. Double-check what’s required and review relevant records to avoid such mistakes.

• Disputes Regarding Liability: Since marine transportation involves multiple parties, disputes over who is liable for damages are common. Work closely with the insurer and send timely intimation to carriers and port authorities to avoid rejections and legal disputes.

• Transporting Perishable Items: Perishable items, foods and goods susceptible to contamination may be excluded under certain marine insurance policies. Read through the exclusions section of your policy documents to avoid filing claims for excluded cargo.

• Improper Packaging: Insurers require policyholders to ensure proper packaging for safe transit. Use suitable packaging materials and check the condition of packaging before shipping your goods.

Know the marine insurance claim procedure before choosing a plan to ensure a seamless experience. Examine the claim process, the insurer’s claim settlement ratio, and claim turnaround times to avoid unfavourable outcomes when you require compensation. Review the policy terms, exclusions and deductibles and follow all rules to avoid a claim rejection.

TATA AIG’s Marine Transit Insurance plan provides comprehensive protection for domestic and international shipments while ensuring quick and effortless claim resolution. Our online claims portal lets you register claims, upload documents and track claim requests.

Our marine insurance policy provides tailored protection, advanced risk management tools and 24/7 claim support by dedicated claim specialists. Explore our plans.