To file a machinery damage claim, record the damage before you sign for the cargo, notify your insurer and the carrier in writing straight away, and keep the machine and its packing as they are until a surveyor has seen them. Claims are won or lost on what was recorded in the first hours.
This article covers the sequence for a sea shipment of a machine from India. The exact time limits depend on your policy, the bill of lading and the law of the route, so confirm them with your insurer and forwarder.
What should you do at the dock?
Look at the container or crate before it is opened. Check the seals against the bill of lading, and photograph the seal numbers, the outside of the box and any holes, water marks or crushed corners.
Write the damage on the delivery receipt or the carrier's form before you sign. A note such as 'crate corner crushed, one side open' is worth far more than a clean signature followed by an email. If the carrier will not accept the note, send it by email the same day with the photographs.
Do not move, unpack or start the machine. A machine that is switched on after a hard knock can be damaged further, and an insurer may then argue the extra damage was your doing.
Who do you notify, and when?
Tell three parties in writing: the insurer or its claims agent, the carrier or forwarder, and the seller. Many cargo policies and carrier terms set short windows for notice, especially for damage that is not visible from outside. Check the clause in your policy and send notice in the first days, not the first weeks.
If the damage is concealed, meaning you find it only when you open the crate, report it as soon as you find it and say so clearly. Our guide to checking a machine on arrival gives a sequence for doing that safely.
Which papers does the insurer ask for?
A claim file is mostly paper. Have these ready before the surveyor arrives:
- The insurance certificate or policy, showing the cover type and the insured value.
- The commercial invoice and packing list, so the machine can be matched to the claim.
- The bill of lading or airway bill, and the delivery receipt with your damage note.
- Photographs and video of the packing, the damage and the machine, taken in the order described above.
- The surveyor's report, which the insurer usually appoints, and a repair estimate or replacement quote.
How is the loss assessed?
The surveyor looks for the cause: poor packing, poor lashing, rough handling, water or a fault in the machine itself. Each cause points to a different responsible party. Packing and lashing faults can sit with the seller, handling damage with the carrier, and accidental loss with the insurer.
This is why the packing records made before shipment matter. Photographs of the crate, the lashing and the loading, taken at the factory, show what condition the machine left in. Our note on insurance for machinery shipments explains which cover to buy and what it excludes.
Expect the insurer to pay on the basis the policy sets, such as repair cost or insured value, less any excess. It will not usually cover loss from a defect that existed before shipment. That is a quality claim against the seller, handled under your contract and warranty. See warranty claims across borders.
Next step
You can avoid most disputes by having packing and loading supervised and photographed at the factory. We do that for buyers, and we can help you assemble the file if a claim arises. To discuss a shipment, book a free sourcing review.