INSURANCE CLAIM PROCEDURE FOR DAMAGE OF MATERIAL DURING TRANSIT/ ERECTION/

INSTALLATION/ COMMISSIONING FOR PROJECTS

Page 1 of 2

As a part of risk management for the Projects we are normally subscribing Marine Cum Erection All
Risk Policy (Marine cum EAR) for the each Project.
The Marine cum EAR Policy covers the risks of loss, damage, theft, pilferage during transit/ erection/
installation/ testing and commissioning of materials for the Project. However pilferage/ loss due to
inherent vice of the material like evaporation of material (in case of petroleum/ gases etc.) are
excluded from the scope of Insurance.
PROCEDURE FOR CLAIM
Please find below the Insurance claim procedure which should be strictly followed immediately
when any damage or loss comes to notice.
i) In case of damage comes to notice when goods are received at site please take
photographs of the damaged goods (preferably when goods are on the vehicle itself)
and mention the loss/ damage/ shortage on the LR (Lorry receipt) and take an
acknowledgement from the driver of the transport vehicle.

ii) In case of theft/ pilferage / burglary please lodge FIR with the Police Station having
jurisdiction over the Project Site. It is important to note that loss observed while taking
the inventory is excluded from the coverage of policy. This aspect should be kept in mind
before lodging FIR/ informing to Insurance Company.

iii) Immediately inform the Procurement Dept. about the incident along with relevant
documents/ photographs and other evidences of occurrence of loss/ damage/ theft etc.

iv) Please do not unload/ move/ make alteration to damaged material before intimation is
given to the Procurement Dept. Procurement Dept. will in turn advice the line of action
to be taken after checking with the Insurance Company.

v) Procurement Department shall immediately upon receipt of above information shall
notify Insurance Company about the damage by Telephone first and in writing giving an
indication of the nature and extent of loss or damage by e-mail/ fax/ letter as within
earliest possible time.

vi) In case of damage during transit is observed Procurement Dept. shall also give notice to
the Transport Company/ Transporter giving details of loss / damage and endeavour to
obtain transporters acknowledgement on such notice. This is extremely important from
the Insurers point of view for enabling them exercise their right of subrogation after
settlement of claim.

vii) Insurance company if required may depute surveyor for assessment of loss/ damage. If
asked by the Insurance Company please preserve the damaged goods in as is and
where is condition. However all reasonable steps to minimise the damage or loss
should be taken after consulting with Procurement Dept./ Insurance Company. Please
note that this is the statutory duty of the insured to take reasonable steps within the
INSURANCE CLAIM PROCEDURE FOR DAMAGE OF MATERIAL DURING TRANSIT/ ERECTION/
INSTALLATION/ COMMISSIONING FOR PROJECTS
Page 2 of 2

control of insured to minimise the loss or damage failing which insurance company may
refuse to entertain the claim.

viii) Preserve the parts affected and make them available for inspection by Insurance
surveyor and provide information and documentary evidence to Insurance Company.

ix) Repair to damaged goods shall only be taken after Insurance Survey has been completed
and approval for repair/ rectification has been obtained from the Insurance Company.

x) Procurement Dept. shall take necessary action for settlement of claim with the
Insurance Company with support from concerned in Projects.