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Jaideep (Manager)     25 February 2010

Re. Insurace Claim

Hi all, i have a cargo moving company. we do transportation by air and train. Few days back, we lifted a consignment of Medicines from Indore to Guwahati which was insured by some national insurance company. We connected material into train from Indore to Howrah. We have given material to a private lease holder. During transit, there was theft happened in running train during Indore to Howrah. When train reached Howrah, we found 15 ctn were lost out of 191 ctns. We forwarded same to Guwahati. Now, consignee party is telling is that the material is worth Rs. 4 lacs. However the total cost of consignment is around 12 lacs. First they said the value of 15 ctn is worth 2 lacs, then they said of 2.84 lacs and then finally they said its around 4 lacs. We said the claim they seek will be on the manufacturing price not the MRP of the goods. But they say it will be on MRP.

Now, i want to know two things:

1) If we get a FIR copy of GRP or RPF, do we still need to pay the claim to company?

2) The claim will depend on manufacturing price or MRP?

please help us with the issue. Also, to avoid such incident in future, what steps we can take.



Learning

 13 Replies

Swami Sadashiva Brahmendra Sar (Nil)     25 February 2010

If it is insured, the insurance company is liable to pay and for assessment of indemnity insurance contract is to be seen.

If there is no scheme for assessment of loss/ indemnity the manufacturing price is to be considered . MRP includes profits  of wholeseller and retailer also who are not insured or  a party in this contract.

Gundlapallis (Advocate)     26 February 2010

When you have insurance why do you worry about the claim? Forward the claim of your client to your insurance company along with your FIR with RPF.  Your client cannot demand MRP - he can be compensated only on the disclosed value or actual manufacturing costs over which he paid taxes which ever is less.  For your future benefit you add a clause that the company would pay only this much, in case of loss or damage to the goods entrusted.

Jaideep (Manager)     26 February 2010

Thanks venkat, but we have not insured the material, the sender party insured the material, we are the carrier. so we dint insure. as they insured the material they asking us the short certificate which they submit to their insurrance company for claim. we demanded them the actual survey report they had at their end to get to know actual loss. still if we submit the FIR do we avoid the reclaim from insurrance company?

Gundlapallis (Advocate)     26 February 2010

I dont understand your last line.. plz clarify. (still if we....)

Jaideep (Manager)     26 February 2010

i mean, if we submit the FIR copy to sender party or insurrance company, can we avoid reclaim by insurrance company?

Gundlapallis (Advocate)     26 February 2010

Insured goods is lost at your hands.  Your client gets insurance amount from his insurance company.  But for that you need to co-operate with him by providing necessary copies of FIR that you have lodged and other material if any.  The Insurance company may make you a party but, you will only be a nominal party, it will recover from Rly. Ins.  You need not pay.  The theft occured at a place beyond your control or hold, during the transit.  If you have not failed in your due deligence in handling this consignment you dont run into financial risk but if things so happen you might have to bear the trouble.  Got it?

Jaideep (Manager)     26 February 2010

ohh you mean, if we fail to get the FIR from GRP or RPF, we are liable to pay to insurance company. and if we get the FIR copy then we are liable??

 

Also, we are facing many problem in transporting goods for this company specially, as it is medicine, majorly the products are packed in glass bottles. During transit it breaks and because of that broken bottle, the labels of other bottles get damage. Soo the consignee party refuse to take that bottle of which labels are damaged. They ask for damage certificate from us. but it is beyond of our control as the bottles brokes due to jerking and vibrations while transit. also due to breaking of 1 bottle other bottle's labels get damage. so in this part, are we liable to pay claim to insurance company?

Gundlapallis (Advocate)     26 February 2010

The goods entrusted to your custody by your client got stolen while in your responsibility.  It is your duty to lodge the complaint before RPF.   If you dont do that you will be held responsible for the whole loss.

 

Either have a prescribed package policy for lifting bottle cartons, if the customer is not meetig your packing standard refuse to take the job or have a separate agreement disclaiming your responsibility for transit breakages with your customer, if the job is continuous.  Without any such agreement protecting you, you will be held responsible for transit loss.   

Jaideep (Manager)     26 February 2010

Thanks a lot venkat for your valuable advices and suggestions. i will try to get a FIR from RPF. once i get it i will let you know if further i need some suggestion. thanks a lot again.

Suri.Sravan Kumar (senior)     27 February 2010

u have entrusted the goods to railway. it is their duty to deliver the goods. if they fail to deliver all the goods railway is only responsible for the loss. Hence u have to claim ur loss through railways only. so pl lodge ur claim with railways.

sravankumar

Advocate

Jaideep (Manager)     27 February 2010

Dear Sravan, we have given goods to a Private lease holder. who operated leased boggies in express trains. so we have not booked under Railways. So railway is not involved. the private lease holder is responsible for it.

Suri.Sravan Kumar (senior)     27 February 2010

in that case issue legal notice to the private lease holder and claim the loss from him.

Jaideep (Manager)     27 February 2010

Thanks shravan, first i will try to get FIR from railways, if we fail in that, we will use legal way.


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