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Compass Management Corp.
105 Serra Way, Suite 316
Milpitas, California 95035
Tel: 1-866-755-0558
Fax: 1-866-755-0559
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The following information is designed to provide claimants with a general overview of the claims process in regard to ocean carriers. Please review the information contained on this page and contact your designated claims administrator for more information.
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Before submitting a claim for investigation and processing a claimant should first review the cargo manifest to determine that governing contractual limitation of liability. Common contractual coverage options include full replacement, depreciated value, full indemnity, and limited liability.
The Carriage of Goods by Sea Act (COGSA) 46 U.S.C. App. 1300 et seq. was adopted by the United States in 1936 from the Hague Rules to govern the rights and responsibilities of carriers and shippers of goods by sea. Unlike the Warsaw Convention for international air transport, COGSA does not defeat a claim for failure to provide timely written notice. |
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 COGSA applies "by force of law" from the time the goods are loaded on board the ocean carrier to the time they are discharged from the vessel. This period has often been referred to as "tackle to tackle", referring to the ship's unloading equipment. |
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1. Inspection: Make immediate inspection of each package before signing delivery receipt. Take proper exceptions on the delivery receipt in respect to all loss or damage existing at the time of taking delivery. It is most important that exact exceptions be taken in writing on the delivery receipt as to the conditions of the consignment and a copy of the delivery receipt must be retained for your claim file. Take photographs where applicable.
Verify that the seal numbers on marine containers match the document numbers. Also be alert when a seal is broken to the possibility that cargo may have been pilfered. Retain all products and packing until you are advised otherwise by the Insurance Company.
2. Written Notice of Loss: The written notice of loss must be provided to the carrier or carrier's agent at the port of discharge. If the loss or damage can be readily seen, the written notice must be provided before or at the time of removal of the goods into the custody of the person entitled to delivery. If the loss or damage is not apparent, written notice must be given to the carrier or carrier's agent within three (3) days of delivery. Failure to provide such notice is not fatal to a claim, but it does create a presumption that the goods were delivered in good order & condition.
Notify delivering carrier of any shipment damage immediately and have a representative come out to inspect and write a damage report. Write to all carriers placing them on notice of claim. There are statutes of limitation to notify the carrier of loss, damage, or non-delivery. Retain all copies of the shipping documents. Generally the following documents will be required to settle a claim: |
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Proof of Insurance: Declaration Form or Original Certificate |
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Commercial Invoices |
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Non-negotiable copy of bill of lading or air waybill (front and back) |
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Claim Statement (an itemization of loss/damage claimed). |
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Copy of letter(s) to carrier(s) giving notice of claim. |
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Carrier's reply(s) if any. |
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Delivery receipts with exceptions noted. |
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Photographs (when applicable). |
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Survey report (when applicable). |
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Packing List |
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Repair estimates (when applicable) |
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1. Damage Limit U.S. COGSA: $500 per package or customary freight unit for shipments to/from the U.S.
2. Damage Limit Hague-Visby Rules : (Modification of Hague not adopted in U.S.) Notice of loss or damage must be given at port of discharge before or at the time of removal of the goods unless loss or damage is not apparent, in which case it must be given within 3 days of delivery. Limit is 666.7 SDR per package or unit or 2 SDR per kilo of weight, whichever is higher.
3. Damage Limit Hamburg Rules: (Modification of Hague not adopted in US). Limit: 835 SDR per package or 2.5 SDR per kilo of gross weight for damage. In the case of delay, 2 and 1/2 times the freight charges for delayed goods. Adopted by only about 2% of the world. |
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