Compensation Process for Loss or Damage of Goods

13/02/2025

Legal Provisions on Transportation Contracts

According to Articles 530 and 531 of the 2015 Civil Code, a transportation contract is an agreement between the carrier and the shipper. The carrier is obligated to:

  • Ensure goods are transported safely and in full to the agreed destination.
  • Deliver goods to the recipient on time.
  • Bear related costs and purchase civil liability insurance.
  • Compensate for loss or damage unless exceptions such as force majeure or prior agreements apply.

 

Liability for Compensation

Under Article 541 of the 2015 Civil Code, the carrier must compensate for damages in the following cases:

  • Goods are lost or damaged due to reasons other than force majeure.
  • Goods are not safely packaged, which is the shipper’s responsibility.
    In cases of force majeure, the carrier is exempt from compensation unless otherwise agreed.

 

Damage Compensation Process

To protect their rights, shippers should follow these steps:

  1. Report the issue promptly: Notify the carrier immediately upon discovering loss or damage, providing detailed information about the incident.
  2. Provide documentation and evidence: Submit the bill of lading, shipping receipt, and photos of the goods before and after transport (if available).
  3. Negotiate compensation terms: Agree on compensation based on declared value or contract terms.
  4. Receive compensation: The carrier processes the payment according to the agreement.

 

Factors Influencing Compensation Amount

The compensation process depends on the following factors:

Bill of Lading (Shipping Receipt): The bill of lading is critical in determining the carrier’s obligations and liabilities. By signing it, the shipper agrees to the compensation terms outlined.

>> Bill of Lading (B/L) and Sea Waybill: Key Documents in Maritime Shipping

 

Declared Value Service: If the declared value service is used, compensation will be based on the declared value or the carrier’s commitment. Without declared value, compensation is calculated per regulations or mutual agreements.

 

Damage Proof: Shippers are not required to provide purchase invoices to prove losses. However, detailed declarations of goods during shipment simplify the compensation process.

 

Important Notes for Customers

  • Use declared value service: Ensure maximum protection in case of incidents.
  • Provide clear goods descriptions: Facilitate smoother compensation claims.
  • Review the bill of lading: Verify that compensation terms are clearly stated.

 

Commitment from KFLV

King Freight Logistics Vietnam (KFLV) prioritizes customer satisfaction, ensuring a transparent and swift compensation process for peace of mind when using our transportation services.

The compensation process for goods lost or damaged during transport must comply with legal regulations and contract terms. To safeguard your rights, both parties should maintain clear agreements and retain all relevant documents. For further assistance or consultation, please contact KFLV via hotline 093.8188.796 or email for dedicated support.

 

Written bykflv.vn

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