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Looking for Options/Opinions

Discussion in 'Insurance' started by PackRat, Apr 25, 2013.

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  1. PackRat

    PackRat Site Supporter

    They will start the claim procedure but will not release a cheque until the freight bill has been paid. Been through this several times and it's always the same.
  2. Jim L

    Jim L Active Member

    From my experience with claims and insurance, the claim process will not be initiated by the insurance company without the payment for the freight being complete or at least an agreement between the insurance company and shipper that the amount for the freight bill will be deducted from final settlement.
  3. whatiship

    whatiship Well-Known Member

    Gord and Dave are both right. It is the insurance company that needs to get involved. You should not be discussing it with them at all except to say that previous legitamate invoices cannot be used as ransom. If your old bills are not paid then you need to get your lawyer involved as well.
  4. AccountsReceivable@DRC

    AccountsReceivable@DRC Moderator Staff Member

    I agree with Gord M on this one. The potential claim amount is way too high to be dealing with at the carrier/customer level. This is what you have insurance for. And when it gets messy between both parties - it will go to insurance companies to mediate anyway. So save yourself the headache - skip the "involvement" step and let insurance rectify the issue.

    As per Dave in London - carriers do handle questionable freight. Just because the carrier accepts the freight and drives off with it - doesn't mean the shipper is completely "off the hook" if damages occurs later on. I've seen huge pieces of machinery just placed on a skid - no wrapping, straps or even shrink wrap. Of course it gets "nicked" or chipped, shifts in transit or falls over. So the customer jumps to the claim process against the carrier for the damage - citing we should have secured it, wrapped it or crated it - since we took it. If you are shipping something - make sure you've done whatever you can to ensure it gets there in 1 piece. Don't hand a set of china dishes to Purolator and ask them to put it in a box and add some tissue paper....
  5. Stupid and nosey question...What happened?
    Did the carrier mess up or was the freight incapable of being properly tied down? As a carrier, we are responsible for load security, yet some of what we try to haul can be pretty questionable with regard to prep for shipping. You sometimes shake your head and wonder why they didn't put a couple of chain eyes somewhere, or crate it. Or they want you to tarp a wide load, but dont take off fragile appendages, levers etc.

    It's a tough spot...truck may have driven 200 miles to get freight, carrier and/or driver doesn't want to leave freight there and drive away. Insurance adjuster may be right.
    Last edited by a moderator: Apr 18, 2013
  6. Gord M

    Gord M Active Member

    Sometimes we tend to over service customers with information when it comes to claims. For large ones like $70,000 the carrier shouldn't have any contact with the customer. Leave it to the insurance company to deal direct with them as a carrier you should know nothing, otherwise they start screwing with your receivables when they should be taking their anger out at the insurance provider.

    Put them in touch directly with the adjuster handling the claim then turn your back on the situation. Any customer that holds receivables that are overdue because they have a claim is not worth having as a client, if they don't pay the insurance premium (freight bill) how can they expect to get anything from the claim?
    Last edited by a moderator: Apr 18, 2013
  7. Flat Bed

    Flat Bed Member

    That's what I kind of thought.. yes strap damage was to very sensitive fragile metal.

    Thanks for your thoughts.
    Last edited by a moderator: Apr 18, 2013
  8. loaders

    loaders Site Supporter

    Wow, 70K for strap damage! Sounds like some one really snugged-up those straps. Did the driver place the straps in the wrong place, like over some sort of delicate component? My experience with strap damage has usually been confined to rubbing off fresh paint, or minor bending of a metal panel. Technically, the customer cannot withhold other legitimate invoices and should pursue this in the form of legal action against you AND the carrier involved. My only suggestion would be to approach your insurer and ask their advice. If the customer does take legal action, your insurer would have to be involved, so why not be proactive? As primarily a flatbed broker ourselves, I would like to hear how this plays out. Good luck!
  9. Flat Bed

    Flat Bed Member

    Contracted a load of machinery to a carrier that sustained "strap damage" - total claim $70,000. Insurance company sent over an adjuster and they refused the claim stating that shipper is responsible as they didn't do enough on their part to protect the machine.

    Now the customer is witholding previous amounts for other transport done totalling $40,000. Just wondering what my options are at this point?
    Last edited by a moderator: Apr 18, 2013

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