Insurance payout on damaged load

[Thefriendlybroker1]

Hoping someone may have some input

Carrier hauled fresh load, but set reefer to minus 10 and froze it. Cfia inspected and confirmed entire load bad

Insurance co is saying they can't process claim without reefer download, but carrier won't answer us or the insurance company now ( been 3 months )

Can an insurance deny a claim payout on an active policy for not having reefer download even though we have government inspections stating load ruined.

Carrier is Northern Alliance Logistics, out of NS

 

[bellcitytransport]

We've had temperature claims denied even with reefer downloads. Fewer and fewer insurance companies are paying out on incorrect reefer settings, citing "driver negligence" which is not covered under most cargo policies or "reefer breakdown". I've fought this over and over again without luck. Driver runs a red light and strikes a car or makes a turn and hits a pole. Both of those incidents are driver negligence.

My favorite excuse lately has been "shipper set the temperature, our drivers are not permitted to adjust reefer temperatures at any time". I know there is probably afew shippers that will ensure reefer is set correctly, but I've never had a shipper set the temperature incorrectly for their product.

I wish you the best of luck.

 

[loaders]

Hoping someone may have some input

Carrier hauled fresh load, but set reefer to minus 10 and froze it. Cfia inspected and confirmed entire load bad

Insurance co is saying they can't process claim without reefer download, but carrier won't answer us or the insurance company now ( been 3 months )

Can an insurance deny a claim payout on an active policy for not having reefer download even though we have government inspections stating load ruined.

Carrier is Northern Alliance Logistics, out of NS

Do you have a contingency cargo policy? If so, you should advise them of this matter. Contingency cargo is meant to address a claim when the carriers insurance is invalid, expired and some other conditions. I assume you mean the carrier is not responding to his own insurer‘s request for the reefer download? That is hard to understand unless they know the download will show a problem with the reefer operation, or their reefer was older and not equipped with download capability. It appears that the insurer and their client, the carrier, have to get on the same page and resolve this. You may need to consult with your own lawyer to expedite that resolution. One last possible reason why they are dragging their feet on this……was the load hauled by their truck, or was the load brokered through their logistics division? Perhaps this problem involves more than one insurer?

 

[MLCAR]

My favorite excuse lately has been "shipper set the temperature, our drivers are not permitted to adjust reefer temperatures at any time".

this in some cases is true, I know some CP cans have set temps for large grocers. -10F set at one time and cant be changed by the shipper/driver EVER, only turned on/off but cant change the temp. Only caveat is if there were any alarms driver should not depart the trailer and have the shipper fix the issue or swing the freight into another can.

I know there is probably afew shippers that will ensure reefer is set correctly, but I've never had a shipper set the temperature incorrectly for their product.

also not entirely true, depending on the customer your shipper/loader may make this mistake fairly often. Its common to see Frozen freight loaded into a Fresh set temp can. Never fun explaining that to the boss.

 

[tasuinam]

We also ask the drivers not to change the temp - only ask to match the BOL/dispatch temp...and if there is an issue they wait till confirmed temp is corrcet by dispatch - and have an email chain record that we were asked to change / disptach or BOL temp was incorrcet / etc...
always communication...

 

[Jim L]

Hoping someone may have some input

Carrier hauled fresh load, but set reefer to minus 10 and froze it. Cfia inspected and confirmed entire load bad

Insurance co is saying they can't process claim without reefer download, but carrier won't answer us or the insurance company now ( been 3 months )

Can an insurance deny a claim payout on an active policy for not having reefer download even though we have government inspections stating load ruined.

Carrier is Northern Alliance Logistics, out of NS

Bringing this conversation back on track....
Once the claim has been submitted to the insurance company it is up to the insurance company determine if and what to pay out. It sounds like your consignee has done its due diligence to ensure that there was no salvage - how it got to be spoiled is not your problem. Your consignee purchased transportation on an insured carrier and it is up to the insurance company to deny the claim. Then your consignee will have to identify if it is worth the legal wranglings to go after the insurance company and the carrier if they deny the claim.

 

[loaders]

Exactly. The insurance company, and here I am assuming it is the insurer of the carrier, is asking their client for a reefer download, a common practice in claim resolution. If for whatever reason the carrier is denying them access to that, the problem lies between the insurer and their client, the carrier. This unusual delay leads me to believe that there might be more than one carrier in this game. You need to press the insurer to take action on this.

 

[YYZRIDER]

Hoping someone may have some input

Carrier hauled fresh load, but set reefer to minus 10 and froze it. Cfia inspected and confirmed entire load bad

Insurance co is saying they can't process claim without reefer download, but carrier won't answer us or the insurance company now ( been 3 months )

Can an insurance deny a claim payout on an active policy for not having reefer download even though we have government inspections stating load ruined.

Carrier is Northern Alliance Logistics, out of NS

It's out of Brampton. Virtual office in NS for obvious reasons. Use to be Safeway Logistics. 1000 Steeles avenue. The owner is Rajesh Dara and happened to be a realtor as well.

 

[bchar]

Take it to court, why ask paul if he seen mike at eds place after leaving kens place?

Insurance is just as dogie as the carriers out there, they love to take your money but they find it hard to give it back. call RIBO and they will ask the insurance guy whats up.... they hate RIBO....LOL