Insurance and claims

[thefriendlybroker]

I had a couple questions and knew someone on here could confirm.

When a broker has a claim on freight from his client. Should he be informing them to use their insurance for the claim

My understanding of the process is the client ( shipper in this case ) would contact his insurance for the claim, they would pay him for the loss and then proceed action against the carriers insurance company.

I am finding a lot of clients are not aware of this and are under the impression a broker should handle the whole process. Even in the case where they would deal with a carrier direct, would they not get their insurance company to go after the carriers insurance ?


your thought ?

 

[jonny-chicken]

As far as I know, it always comes back to the carrier's insurance. They should handle everything.

If a claim is to be made, the carrier's insurance company should be contacted to handle the claim. Even in cases where the carrier refuses to start the claim on their own.

I have run into this several times. The carrier refuses to start a claim because the claim amount is less than their deductible, or in some cases they just say they are not at fault. In this case the party who has incurred the damages or costs must go after the carrier's insurance company and initiate the claim without the carrier's involvement. This can be done, and it does happen.

 

[SCAM CHASER]

As a broker, you should always request current cargo insurance from the carrier you are using. In the event of a claim, it is the owner of the goods who files the claim WITH THE CARRIER. The owner would/should also advise the carrier's insurance company (as well as their own insurance company) of that notice of claim filed with the carrier.

Item 12 of the Conditions of Carriage (Ont Regs 643/05) outlines the timelines and requirements.

As a broker, legally you do not have an insurable interest in the claim; however, if you make a deal/settle with your customer, and want to assume the ability to "go after" the carrier for reimbursement, make sure you have a written assignment from your customer of all rights and claims in the affected property.