Marine Cargo

It is important to remember that often the most crucial period in the marine claim process is the first few moments immediately following initial discovery of the loss or damage.

In the event of loss or damage being discovered, if you are unsure of the best action to take and before you sign any delivery document to acknowledge receipt of the goods, we recommend that you read through this list – it will take less than five minutes.

Immediate Action

Once loss or damage is discovered, there are three things that you as the insured or the claimant must do without delay.

1. MAKE EVERY EFFORT TO MINIMISE THE LOSS AND/OR PREVENT FURTHER LOSS OR DAMAGE
   This is a requirement under the “Duty of Assured” clause of most Marine Cargo Policies. This could include, for example:

   (i)    Separating damaged items from sound cargo;

   (ii)   Unpacking and spreading out damp or wetted items to assist drying;

   (iii)   Re-bagging/repacking;

   (iv)   Temporarily sealing leaking drums;

   (v)    Re-cooperating or re-banding.
   
   Reasonable expenses incurred in taking such steps are reimbursable in addition to any claim payment for damage.
   

2. NOTIFY ACE OR YOUR INSURANCE BROKER so that, if required, a survey of the damage can be promptly arranged. UNTIL SPECIFICALLY ADVISED BY ACE OR YOUR BROKER THAT A SURVEY WILL NOT BE NECESSARY, YOU SHOULD ASSUME THAT A DAMAGE SURVEY WILL BE EFFECTED.
   

   Wherever practicable, the damaged cargo and all original packing materials should be retained in the condition received until after the survey, unless further damage will result by doing so.

   Once a survey is arranged, the carrier or his agent should be notified of the time and place of the survey so that they can be represented at a “joint survey”. The carrier may often choose not to attend a joint survey; however, they must be given the opportunity to do so.

   Notification of a possible claim to ACE or your broker should NOT be withheld awaiting a reply to your initial claim made in writing on the carrier.

3. CONTACT THE CUSTOMS AUTHORITY for a joint survey where a reimbursement of import duty is likely to be sought.

Applicable Documents

1. The document issued showing the amount of insurance placed and coverage provided.
   For an export shipment, this can be original Special Marine Policy or Certificate of Insurance.
2. The original or non-negotiable copy of the primary transit document.
   For an ocean shipment, this will be a Bill of Landing.
   

   For an air shipment, a Master Air Waybill (MAWB) and/or House Air Waybill (HAWB).

   For an inland transit, a Consignment Note.

3. Acknowledge of final delivery.
   

   Discharge/Wharf/Landing Receipts of Weight Notes are likely to represent the primary overseas document.

   A Consignment Note will normally be issued by the final inland carrier/ forwarder (in addition to the primary ocean transit document).

4. Supplier’s commercial invoice.
5. Packing list, weight certificates or other evidence of the nature and condition of the goods at the time of the shipment.
6. Pre-shipment survey report, if an independent surveyor was appointed to report on load/stow arrangements prior to transit commencing.
7. Copy of claim on carrier/freight forwarder and (if available) their reply.