Testimonies to our Claims

When steel coil cargo gets damaged, it is important to dig deep and find out exactly what happened. A thorough investigation including running of the right tests helps uncover the real reasons behind the damage or loss. Taking this meticulous approach makes it easier to make fair and informed decisions and ensures claims are settled quickly to reflect the true nature of the incident.

Case 1: Rust Trouble on Arrival

A shipment of hot rolled galvanised steel coils arrived at the port, showing obvious signs of rust and water damage. Thankfully, the cargo was insured under the ICC (A) 2009 terms, which offers protection for goods in transit.

Upon inspection, we discovered rust on both the surface and the cross sections of the coils. To confirm the source of contamination, we ran a silver nitrate test which ruled out seawater exposure.

Our team looked further into the weather reports which showed light showers during loading and heavy rainfall during unloading. This pointed to rainwater exposure during transit as the source of damage – an incident covered by our insurance policy.

To mitigate loss, the damaged coils were cut and affected sections were isolated.

Throughout, we worked closely with our Insured and settled the claim based on the coils’ insured value, less the salvage amount received for a rejected coil that was ultimately sold off through a tender process.

Case 2: Damaged before Departure

When several shipments of stainless-steel coils were received by the consignees in damaged condition, we were notified to investigate the claim. The coils exhibited dirty outer casings, distinct tide marks and visible signs of dampness. Mould and corrosion were also found, indicating prolonged exposure to moisture.

However, the containers they were shipped in showed no evidence of water ingress, and multiple tests confirmed that seawater was not the cause.

We launched a detailed investigation to trace the journey of the coils. It turned out that many of these coils had been sitting in an open yard at the port for two to five months before they were actually shipped. During that time, the area experienced heavy rain and flooding.

This meant the damage happened before the cargo was in transit which was not covered by the insurance policy under the ICC (A) 2009 terms. Based on these findings, we advised the Insured to seek recourse from the port authorities since the damage occurred while the coils were under their care.

A thorough investigation brings clarity to the cause of damage or loss. It helps confirm whether a claim falls within policy coverage, and just as importantly, identifies the right parties to follow-up with when it falls outside of coverage. This process ensures transparency, protects our Insureds and reinforces our commitment to fair and informed claims handling.