Compass Management Corp. 105 Serra Way, Suite 316 Milpitas, California 95035 Tel: 1-866-755-0558 Fax: 1-866-755-0559 A claim against a carrier is a legal demand for the payment of money arising from the breach of the contract of carriage (usually the air waybill or bill of lading). Therefore, the rules governing the filing of claims are founded in law and must be followed strictly. Claims are also governed by government regulations, whether intrastate or interstate commerce is involved. If an international movement is involved, the claim may also be governed by international treaties. Claims rules will be found either in carriers' tariffs or in their bills of lading, or both. Court decisions interpret these regulations, laws and tariffs, and determine the rights and obligations of the parties. If a claim shipment was governed by a contract, the terms of that agreement will govern the carrier's liability. Often contracts will adopt common carrier tariff rules, as described herein. No specific claim form is prescribed by law, but four elements are essential: The shipment must be identified to enable the carrier to conduct an investigation;   The type of loss or damage must be stated;   The amount of the claim must be stated or estimated; and   A demand for payment by the carrier must be made. The claim must be delivered to the carrier within the time period specified in the carrier's contract and/or tariff, or that time prescribed by law. Since the date of receipt by the carrier determines whether or not the claim is timely filed, claims should be filed via delivery methods which give some type of confirmation of receipt and guarantee as to length of time for delivery, such as; Registered or Certified mail, Return Receipt Requested; Express Mail; Express Courier Services A detailed description of the loss, damage or delay must be stated, setting forth the specific commodities, number of units of each type, extent of loss suffered, the value of each unit, the amount of salvage realized, the net loss, and a description of the events which caused the loss. Example: 10 cartons clothing water damaged @ $100 ea. = $1,000   2 cartons shoes short @ $500 ea. = $1,000   3 cartons china crushed @ $100 ea. = $ 300   $2,300 Less Salvage - 150   Amount of Claim = $2,150 The amount of the claimant's loss should always be stated in the claim. When the extent of a loss is not known at the time of filing, it is not good practice to state that "this is a claim for $100 more or less." When this is done, some carriers have been known to mail a check in the amount of $100 in expectation that the check will be deposited, thus relieving the carrier of further liability. The better practice is to place the carrier on notice as to its maximum exposure to liability by stating the full potential loss. If a lesser amount is finally determined to be owed by the carrier, the claim must be amended to that amount. Although not specifically required by law, claims must usually be supported by documentation of the damage or loss. Claims without such documentation will be accepted, however, absent supporting documentation the claim may be denied based on a lack of evidence of damage or loss. Examples of possible supporting documentation is as follows: The original bill of lading   The paid freight bill   Proof of the value of the commodities lost or damaged   Inspection reports, if made   Copies of request for inspection   Notification of loss   Waiver of inspection by carrier   Special documents when appropriate, such as:     Photographs   Temperature reports   Impact records   Condemnation certificates   Dumping certificates   Laboratory analysis   Quality control reports   Package certifications   Loading diagrams   Weight certificates   Affidavits   Carrier's passing reports   Loading and unloading tallies Copyright © 2007 Compass Management Corp. All Rights Reserved.