Marine Cargo Damaged During Shipping? Follow This Step-by-Step Insurance Claim Process

Goods Damaged During Ocean Shipping? Here's How to Follow the Insurance Claim Process

With the booming development of international trade, more and more enterprises choose ocean shipping for transporting goods. However, due to possible adverse weather, ship accidents, or human negligence during the shipping process, damage to goods often occurs. Once goods are damaged during transportation by sea, how should enterprises respond? How can they recover losses through insurance claims? This article will detail the process of insurance claims for marine cargo and provide practical suggestions to readers with relevant cases.

Firstly, when purchasing marine cargo insurance, enterprises need to clearly understand their risk needs. According to the relevant regulations of the China Insurance Association's Marine Cargo Insurance Terms, common types of marine cargo insurance include Free from Particular Average FPA, With Average WA, and All Risks. The FPA only covers total loss caused by natural disasters and specific accidental events; the WA adds partial losses caused by natural disasters on this basis; while the All Risks covers all risks except those covered by the first two. Before purchasing insurance, enterprises should carefully assess the value of the goods and the transportation environment to choose an appropriate type of insurance. For example, in 2025, an electronics company exported a batch of high-precision equipment to Europe. When signing the contract with the insurance company, it chose the All Risks policy. Eventually, due to encountering a storm during transportation, the equipment was damaged and fully compensated.

When goods are damaged, enterprises should promptly take measures to prevent further losses from expanding. According to international conventions such as the Hague Rules and the Hamburg Rules, the consignee is required to immediately notify the carrier upon discovering abnormal goods and submit a written declaration within a reasonable period. Domestic laws also emphasize the importance of timeliness. For instance, Article 82 of the Maritime Law of the People's Republic of China stipulates that the consignee shall raise objections within ten days of receiving the goods. Upon receipt of the goods, enterprises should immediately check whether the appearance is intact. If any damage or shortage is found, they need to take photos as evidence immediately and fill out the bill of lading attachment, while contacting the insurance company or freight forwarder for assistance.

Next is to formally enter the claim process. The first step is to report the incident to the insurance company. Enterprises can report the accident details to the insurance company via phone, email, or online platforms, including but not limited to the name, quantity, value, and extent of damage to the goods. The second step is to prepare claim materials. Typically, the insurance company will require enterprises to provide the following documents original insurance policy, copy of the bill of lading, copy of the invoice, packing list, inspection report, accident proof, and claim application form. These documents help the insurance company verify the authenticity and rationality of the loss. For example, in a case involving ceramic products, the cargo owner provided a detailed loss list and a professional appraisal report issued by a third-party institution, ultimately obtaining compensation smoothly.

It is worth noting that communication is crucial throughout the entire claim process. Enterprises should maintain close contact with the insurance company, freight forwarder, and carrier, and follow up on the progress of the case in a timely manner. If there are disputes over liability attribution, arbitration institutions or courts can be used to resolve disputes. Enterprises also need to retain all records and evidence of communications for future reference. For example, at the beginning of 2025, a textile trading company claimed compensation from the insurance company due to moisture-damaged fabric. However, due to the lack of complete evidence chains, the claim failed. This shows that thorough preparation is decisive for successful claims.

Finally, after completing the claim, enterprises still need to summarize lessons learned and improve risk management mechanisms. On one hand, they can reduce the probability of similar incidents occurring in the future by adjusting packaging methods and optimizing transportation routes. On the other hand, they can consider purchasing additional insurance types, such as war risk and strike risk, to cover more potential risks. At the same time, enterprises should regularly review existing insurance contracts to ensure they always meet the needs of their business development.

In summary, facing the situation where goods are damaged during ocean shipping, enterprises need to analyze calmly and act proactively, strictly following the insurance claim process. Only in this way can they minimize economic losses and ensure normal business operations. It is hoped that the methods provided in this article can help both enterprises and individuals properly handle such problems and achieve steady development.