NACORA Risk & Claims Services Cargo Claims from a ... 1_Cargo claims from the... · Identify the...

16/11/2010Corporate Communications – Kuehne + Nagel Global Presentation January 2007 p. 1

NACORA Risk & Claims Services

Cargo Claims from a forwarders perspectiveIATA Conference Geneva, 10th Nov. 2010

Sgi GN

NACORA Sgi GN / 2010

IATA Conference Geneva Nov 2010

AGENDA

About NACORA & Kuehne + Nagel

NACORA Risk & Claims Services

Cargo Claims - Forwarders Perspective

Cargo Claims – Pre-Claims Challenges

Cargo Claims Prevention - Risk & Claims Management

Cargo Claim Prevention - Contractual solutions

Cargo Claims Prevention - Insurance solutions



• Since 1972 it has been NACORA's core competence to support companies in the design and building of cost-effective insurance programmes.

• NACORA is an independent operating commercial insurance broking firm specialising in the provision of risk management and insurance solutions, products and services.

• Its network of offices spans thirty countries from where NACORA deploys insurance, claims and risk management specialists serving customers in all industry sectors throughout all the major economies.

• Member of the Kuehne + Nagel Group

• Our corporate head office is in Schindellegi, near Zurich, Switzerland

• Visit our web page under www.nacora.com

About NACORA & Kuehne + Nagel



NACORA RISK & CLAIMS SERVICES

Division of NACORA Insurance BrokersNACORA organizes & handles Kuehne + Nagel cargo liability claimsIt operates 7 KN claims centres worldwide (Hkg/Sao/Bue/Rtm/Sto/Vie/Nyc) NACORA also provides TPA services to the insurance industry and international commerceNACORA ensures that claims processes are streamlined to the maxProvides advice in transport liability matters



CARGO Claims - Forwarders Perspective

Frequent types of loss

Main risk is the physical loss and damage to goods

Financial and Consequential loss claims resulting from E&O(cross labelling; insufficient documentation), delay

Overall low loss ratio compared to other business fields




Frequent defendants

Pre- and on carriage carriers (70%)

Terminals & handling agents(30%)

Airlines




Frequently affected commodities

PharmaceuticalsMedical EquipmentMachineryPerishable Cargo




Recommendations

Clear communication and documentation of temperature instructionsFaster response times Waiver of requirement for destruction certificates




Challenges

Identify the capacity of the freight forwarder

As freight forwarding agent

As contracting carrier (HAWB)

As Multimodal Transport Operator

As party to a transportation or logistics agreement




Challenges

Freight forwarding agent

Exercise due diligence and care in the adequate selection of theactual carrierEnsure that no other actions lead to an actual carrier status, ensure you remain:

– Link Between Parties– How Interpreted in Law– ACT’s on Instructions– Fixed Disclosed Fee– Issuance of HAWB




Challenges

As “Contracting” Carrier (HAWB issued)

Protected by the conditions on the HAWB which will in most casesbe back to back with international conventions MC/WCClaims must be addressed to the station that issues the AWB/HAWB Geographical claims handling coverage required




Challenges

As Multimodal Transport Operator As party to a transportation or logistics agreement

Different knowledge level in transport law and insuranceUnknown place of damage or lossUnknown details about second tier subcontractorsImmense commercial pressure from the client sideNo global convention or industry STC body to rely uponUnbalanced bargain position forwarder – multinational companies



Cargo Claim Prevention - Risk & Claims Management

Get the Process Right :

• Reserve letter• Claim acknowledgement letter• Claims reporting • Professional handling & recoveries




Claims Database

e-claim –Claims Database




File RefType Of

Movement Claim NoClaimant

Name Claimant Address Defendent BranchResponsible

Carrier

1485-7637-506.031-01 FO ML0268/08 Customer X

C/O Paint UK Ltd, Plant A/P, Box 261, Silver fox way, Newcastle

Forwarding UK Newcastle ITC

1485-7637-508.021 FA ML0301/08

Customer XBass Company Summer Road, Seaton Delaval, Roosendaal

Forwarding NL Rotterdam XS Airline

1485-7637-510.027 FY ML0374/09

Customer X 3D graphics Kralingen, Rotterdam

Forwarding NL Rotterdam

Schipol AmterdamGround handling

sort by customer mode of transport and carrier




Claim No Claimant Name Description Of Incident

No Of Packages Missing Or Damaged

Weight Of Packages Missing Or Damages Incident Currency

Amount Claimed

Responsible Carrier

ML0268/05 Customer XGoods received wet damaged 1 plt 420 kg Damaged EUR 48’000.00 ITC

ML0301/05 Customer X

Goods received wet damaged

6 crt 70 kg Damaged EUR 16'013.60 XS Airline

ML0374/05 Customer XGoods received wet damaged 2 crt 24 kg Damaged EUR 1'728.00

SchipolAmterdamGround handling

sort by incident andsort by customer, mode of transport,carrier




Monitoring and analysis of claims information

• Process optimisation (survey)• Quality management support & carrier evaluation• Claims reserve and recovery management• Claims Reporting• Contract optimisation• Insurance Solutions

REDUCTION OF RISK



Cargo Claim Prevention - Contractual solutions

Identification of services and risks is essential

Assess scope of work Define in what capacity you wish to act (Carrier/Agent)Incorporate industry standards (S.T.C.) BIFA, Fenex, ADSp, Spedlogswiss, HAFFA, or international conventions Allow for professional review of contractsIdentify and eliminate any uninsured / uninsurable risks

Always incorporate straight claims handling procedures



Cargo Claim Prevention - Insurance solutions

Reason:

Cargo Value: 50’000 EURFreight forwarders profit at 10% of freight charges: 100 EUR

Freight forwarder cannot absorb full value liability or insurance costs



Cargo Claim Prevention - Insurance solutions

Solution:

Cargo Interests must adequately insure their cargo, to have bestpossible protection.

Cargo insurance meets the commercial expectations in respect of:– Full value cover– Fast claims handling and settlement– Scope of cover

All risk insurance Costs for an general cargo air shipment EU-US worth 50’000 USD are approximately 113 EUR.



- Insurance made simple -END

NACORA Agencies AGContact: Sgi GN, Steffen BergholzE-Mail: [email protected]

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