Shipping insurance covers parcels or goods that are in transit with a courier. The goods owner pays certain insurance coverage to insure their goods in case of any uncertainties. If the goods are lost or damaged, you as the owner of the insured goods can claim compensation from the shipping insurance company.
You need to follow certain steps to obtain the right compensation rate successfully, and they include:
Proof of damage or loss
If your goods were damaged in the process of transit, you need to provide factual information supporting your claims to the insurer. You should report the damage upon receiving the goods. The goods are the evidence you need to present to the insurance company; thus, you should not discard them.
The proof of loss should be a formal document used in the initiation of the claim process. In the form, you should include the damage extent of the goods, the financial loss suffered, and the probable cause of damage.
If the goods were lost in the process of transit, you need to prove that the goods were not delivered to the agreed location or time. If the parcels’ carrier can confirm that the goods were delivered, you will not be eligible for any compensation from the insurer.
Proof the value of the goods
Most insurance companies will compensate for an insurance amount that is equivalent to the value of the goods. You need to prove the current market value of the item lost or damaged in the process of transit. You can provide the purchase receipts of the goods to the insurer.
File in time
Various insurance companies have different timeframes when you can file for an insurance claim. The most recommended time is filing immediately after you discover the delivered goods are damaged or missing. Some companies give you an average of six months from the day of shipment to file your claims. Others require that you file after 90 days for damaged goods and nine months for lost goods. Check the requirements of your insurance company as they tend to vary.
After completing the various steps of filing for an insurance claim, the insurer needs to verify if the available data is factual. The company investigates the damaged goods and analyses them. If they were damaged due to negligence in the goods packaging process, the insurer would be reluctant to offer any compensation.
For lost goods, the insurer needs to take all steps to locate the goods. If the goods are not located within 60 days, the insurance company needs to compensate you for the goods’ value. On average most insurance companies give compensation after 90 days from the insurance claim acceptance.
Why the insurer rejects some insurance claims?
In some instances, the insurer can refuse to compensate you due to the following reasons:
- Transporting of perishable goods
- Damage of the transporting vessel
- Mistakes in the filling of an insurance claim
- If you don’t have a valid insurance policy
- Improper or defective packaging materials that leaves the goods vulnerable to damage.