Step-by-Step Guide to Filing a Marine Cargo Insurance Claim

Step-by-step process of filing a marine cargo insurance claim – including reporting loss, submitting documents, claim verification, and settlement

Table of Contents

1. Summary

2. Introduction

3. What Is Marine Cargo Insurance?

4. Why Filing a Claim Matters

5. When to File a Marine Cargo Insurance Claim

6. Step-by-Step Process of Filing a Claim

7. Practical Tips to Strengthen Your Claim

8. Regulatory and Legal References

9. FAQ's

Summary

Filing a Marine Cargo Insurance Claim is not just about recovering financial losses—it’s about protecting business continuity in the unpredictable world of global trade. This comprehensive guide explains everything you need to know, from when to raise a claim, the exact steps to follow, the documents required, common pitfalls to avoid, and tips to maximize your claim approval. Whether you’re an importer, exporter, or logistics professional, this step-by-step approach ensures your Marine Cargo Insurance works effectively when you need it the most.

Introduction

Global trade thrives on efficiency and reliability, but the harsh reality is that cargo is always at risk storms at sea, accidents in port, theft during transit, or mishandling during loading and unloading. Businesses often purchase Marine Cargo Insurance as a safety net, but when disaster strikes, many struggle with the complex process of filing a Marine Cargo Insurance Claim.

The challenge? Strict timelines, lengthy paperwork, and the risk of rejection if even one detail is missed. In this blog, we break down the entire claim process into clear, actionable steps, giving you the confidence to recover losses quickly and minimize disruption to your supply chain.

What Is Marine Cargo Insurance?

Marine Cargo Insurance is a specialized policy that covers goods against risks during transit by sea, air, road, or rail. Despite the name “marine,” modern policies usually cover multimodal transport.

Typical risks covered include:

• Damage caused by natural disasters (storms, earthquakes, floods)

• Accidents at sea, air crashes, or road mishaps

• Theft, pilferage, or non-delivery

• Fire or explosion

• General Average (shared loss contribution when cargo is sacrificed to save the ship)

Policies are usually based on Institute Cargo Clauses (ICC A, B, or C), which define the scope of coverage.

Why Filing a Claim Matters

A shipment delay, damage, or loss can cripple your cash flow. Without filing a claim correctly, businesses bear the financial burden themselves. Filing a claim ensures:

• Recovery of insured losses

• Business continuity despite disruptions

• Better credibility with suppliers and clients

• Legal compliance with international trade practices

When to File a Marine Cargo Insurance Claim

A claim should be filed if your shipment faces:

• Total loss: Cargo lost entirely (e.g., container lost at sea)

• Partial loss: Goods partially damaged during transit

• Theft/Pilferage: Missing packages or tampered containers

• Delivery discrepancies: Short shipments, mismatched weight/volume

• Additional expenses: Charges borne due to accidents (e.g., salvage, warehousing, customs penalties linked to loss)

Step-by-Step Process of Filing a Marine Cargo Insurance Claim

Step 1: Notify the Insurer Immediately

• Contact your insurance company as soon as damage or loss is noticed.

• Provide policy details, shipment information, and a preliminary report of damage.

• Ask for the official claim form and instructions.

Step 2: Safeguard and Document the Evidence

• Take clear photographs and videos of the damaged cargo, packaging, and container seals.

• Mark all discrepancies (e.g., dents, tears, missing goods) on the delivery receipt/consignment note before signing.

• Do not dispose of or repair goods until the insurer’s surveyor inspects them.

Example: If cartons of textiles arrive soaked, capture pictures showing wet containers, damaged outer cartons, and spoiled fabrics inside.

Step 3: Collect and Organize Essential Documents

The following documents are commonly required:

1. Insurance Policy/Certificate – proof of coverage.

2. Commercial Invoice & Packing List – details of cargo and value.

3. Bill of Lading/Airway Bill – transport contract.

4. Delivery Note/Consignment Note – proof of delivery and discrepancies noted.

5. Damage Certificate/Survey Report – issued by carrier or surveyor.

6. Correspondence with Carrier – any protest letters filed.

7. Claim Form – completed in insurer’s format.

Step 4: Fill and Submit the Claim Form

• Provide shipment details (date, route, transport mode).

• Describe the nature of damage/loss (e.g., “50 cartons of electronics damaged due to water ingress”).

• Estimate financial loss with supporting invoices.

• Attach all documents in one complete set.

Step 5: Facilitate the Survey and Investigation Process

The insurer usually appoints a licensed surveyor to examine the goods.

• Cooperate by allowing access, providing warehouse/storage details, and explaining circumstances.

• Provide independent third-party reports if available (e.g., port authority note, customs inspection record).

Step 6: Claim Assessment, Settlement & Compensation

• After reviewing documents and survey reports, the insurer calculates payable compensation.

• Deductibles, exclusions, and underinsurance are applied.

• Once approved, payment is released directly to the policyholder.

Common Mistakes That Lead to Claim Rejection

• Delay in claim notification.

• Not noting damage on the delivery receipt.

• Disposing or repairing goods before inspection.

• Submitting incomplete or inconsistent documents.

• Misrepresentation of facts or inflated claims.

Regulatory and Legal References

• IRDAI (India): Governs insurance companies and claims settlement timelines.

• Institute Cargo Clauses (ICC A, B, C): Define coverage scope under international trade.

• International Maritime Organization (IMO): Sets global safety and shipping standards.

• Carriage of Goods by Sea Act (COGSA): Governs carrier liability in many countries.

FAQ's

1. What is a Marine Cargo Insurance Claim?

It’s a formal request to the insurer for compensation when goods are lost, damaged, or stolen during transit.

2. When should I file a Marine Cargo Insurance Claim?

Notify your insurer immediately, usually within 24–72 hours of discovering loss or damage.

3. What documents are required for a Marine Cargo Insurance Claim?

Key documents include policy, invoice, packing list, bill of lading, damage certificate, and claim form.

4. How long does it take to settle a Marine Cargo Insurance Claim?

Most insurers settle within 30 days after receiving complete documents and the surveyor’s report.

5. Can a Marine Cargo Insurance Claim be rejected?

Yes, if filed late, documents are missing, goods were repaired before survey, or facts are misrepresented.