Carriers Legal Liability Insurance Claim Process

Scope of Cover and Documents required for Claims.

Policy Covers:

  • Damage to cargo directly caused by fire, explosion or accident to the carrying vehicle
  • Carrier`s liability for cargo.
  • Cargo salvage, transshipment, emergency storage costs.
  • Financial loss due to the lost freight in respect of the damaged part of the cargo.
  • Costs of average adjusters.
  • Legal and other costs, incurred in the litigation against the claimants.
  • Breakage due to improper handling.
  • Flood or water damage or damage by other cargo.
  • The cover will commence with the loading of cargo on the vehicle and will be in force until unloading of the cargo at the discharging point or expiry of 7 days after the first arrival of the vehicle at the destination town whichever may first occur.

Exclusions:

  • Liability under any other contract not under Carriers Act 1865.
  • Liability in respect of damage to property belonging to insured or his employees or in his control.
  • Inherent defect or vice, wear and tear, deterioration, spontaneous combustion or decay of perishable goods.
  • Consequential loss arising from loss or damage to goods.
  • Any consequence of riots, strikes, war, ionizing radiations.
  • Goods which may be illicit or illegal or smuggled.

Documents Required for Claims:

  • Intimation to Insurance Company.
  • Completion of Claim Form.
  • For Fire/Explosion- FIR from Police Authorities, Fire Brigade Report.
  • For Accidents to the carrying Vehicle- FIR from Police Authorities.
  • Details of Cargo Carried and Lorry Receipt Copy to show the nature of Goods Carried. If Explosives are carried then Copy of License to carry explosives should be produced.
  • In case of retrieval of Salvage then the cost of retrieval should be produced.
  • In case of emergency storage required then the reason for emergency storage together with the place of storage and the storage bill to be produced.
  • In case of transshipment due to repair of the carrying vehicle then the report from the Repairer for reasons of repair. The copy of documents of the vehicle used for transshipment together with their bill for cost of transport.
  • In cases of theft/pilferage/shortage of the goods carried then the copy of regiment slip at the point of Origin and copy of regiment slip at the point of delivery in case of bulk cargo. In case of cargo in bags the physical count of the bags at the point of origin and the physical count at the point of delivery.
  • In cases of shortage of Liquid cargo like petroleum/ chemicals then the registered quantity at the point of filling and the loading bill thereof along with the quantity at the point of delivery.
  • In case of partial damage to cargo due to accident then the cost of damage to the cargo. Photographs should be taken at the point of accident to prove the same. If due to accident the same should be duly mentioned in the FIR.
  • Original copy of LR endorsed by the receiver for shortage/damage.
  • Damages that occurred at the point of Loading or Delivery and the cost of the same together with the cost of the damaged items.
  • To give a statement regarding the degree of care exercised whilst handling the cargo.
  • In case of Flood/water damage then copy of meteorological report together with copy of FIR to prove the damage. In case of rainwater damage then a statement from the driver that he exercised reasonable care by using the tarpaulins available.
  • In case cargo is carried for more than one customer then the nature of cargo carried to show whether any inherent vice/explosion in other cargo has damaged the cargo.
  • Original copy of survey report of Loss Adjusters and their Fee Receipt.
  • Details of interim compensation paid if any with payment receipt together with the details of Survey report for damages if any.

In the event of Claims being repudiated by the Insurance Company the following options are available as a recourse:

  • Make a representation to the Insurance Company/TPA.
  • If no reply is received within 15 days on making such representation make a representation to the Grievance Cell of the Insurance Company.
  • If No Reply is received or if the reply is not satisfactory then make a representation to the Insurance Ombudsman who has Quasi Judicial powers to hear the case and make adjudication.
  • If still not satisfied the next option is to go to court.