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In the trade and transportation sectors, cargo insurance plays a crucial role in minimizing risks and protecting stakeholders’ rights. When damage or loss occurs, understanding the cargo insurance claim process helps businesses safeguard their rights and streamline document processing.

When Can You File a Cargo Insurance Claim?

Businesses can file a claim when cargo encounters incidents during transportation due to:

• Accidents, fires, or natural disasters causing cargo damage.
• Loss or damage due to carrier negligence.
• Special risks as stipulated in the insurance contract.

Principles of Cargo Insurance Compensation

• Compensation Limit: The compensation amount cannot exceed the insured value stated in the contract.
• Reasonable Expenses: Costs such as salvage, assessment, and general average may be covered.
• Compensation Form: The insurance company compensates in cash, not in goods.
• Deductible Compensation: If the insured party has received compensation from a third party, the insurance company will deduct this amount.

>> Read More: Shipping Rates for LCL and FCL from Vietnam to Keelung

Cargo Insurance Claim Process

When an incident occurs, the cargo insurance claim process includes the following steps:

Step 1: Submitting a Claim

The claimant submits a compensation request along with all required documents to the insurance company.

Step 2: Document Verification

The insurance company reviews the documents for validity and requests additional information if necessary.

Step 3: Damage Assessment

An expert evaluates the extent of cargo damage to determine the compensation amount.

Step 4: Compensation Calculation

Based on the assessment results, the insurance company calculates the compensation amount according to the insurance policy.

Step 5: Claim Approval and Notification

After the review, the insurance company informs the claimant of the approved compensation amount.

Step 6: Compensation Payment

The compensation amount is paid according to the agreement between both parties.

Required Documents for Cargo Insurance Claims

To ensure a smooth claims process, businesses should prepare the following documents:

• Insurance claim form.
• Original insurance contract and relevant appendices.
• Bill of lading and cargo transportation contract.
• Damage assessment report from an authorized agency or the insurance company.
• Delivery documents and receipts from ports or warehouses.
• Correspondence between the insured party and the carrier regarding liability for the loss.
• Invoices and receipts for expenses related to the loss.

In some cases, the insurance company may request additional documents such as commercial contracts, payment receipts, and certificates of origin.

Key Considerations When Filing a Cargo Insurance Claim

• Submit claims as soon as possible to avoid losing compensation rights.
• Ensure all required documents are complete and accurate per the insurance company’s guidelines.
• Maintain communication with the insurance company for updates on claim processing.

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