- What is a claim?
- Where can I obtain a claim form?
- When do I file a claim?
- Who should file a claim?
- With whom should the claim be filed?
- What are the required documents?
- What is concealed loss or damage?
- What is the burden of proof for a claim?
- Should I pay the freight bill?
- What should be done with the damaged goods? (i.e. salvage retention)
- What happens if a claim is declined?
- What is the proper follow up on a claim? (i.e. claim status)
- Claim Filing Checklist
- Who should I contact for claim prevention assistance?
A claim is a demand in writing for a
specific amount of money that contains sufficient information to identify
the shipment received by the originating carrier, delivering carrier, or
carrier on whose line the alleged loss, damage, or delay occurred within
the time limits specified in the B/L contract.
Claim forms may be obtained from the
delivering carrier's website, by calling Capital Transportation Services
or clicking the link listed below. However, a specific form is not required and the claim can be filed in
letter form.
Claims should be filed promptly once
loss or damage is discovered. Time limit for filing a claim is 9 months
from date of delivery, or in the event of non-delivery, 9 months after a
reasonable time for delivery has elapsed. If a claim is not received by the
carrier within this time, payment is barred by law.
A claim may be filed by the shipper,
consignee, or the owner of the goods. Be certain to clearly show the name
and complete address of the claimant.
If a shipment moved at a released
rate, it may be to the consignee’s benefit to contact the shipper prior to
filing.
The claim may be filed with the
delivering carrier.
A. ORIGINAL INVOICE
The original invoice verifies that the
amount of the claim does not exceed the terms of sale (value of the goods)
at destination, and excludes any prospective profit. The original invoice
must disclose all discounts and allowances, if any.
B. ORIGINAL PAID
FREIGHT BILL
The original paid freight bill
showing that freight charges on the shipment against
which the claim is filed have been paid in full. In order for a claim to be
finalized, all freight charges must be paid.
C. REPAIR OR
REPLACEMENT INVOICE
When sending a repair invoice,
it should include a breakdown of hours, labor rate, and materials. (If
applicable)
When damage is discovered after
the delivery receipt is signed and the cartons are opened, it is termed
concealed damage. When this occurs, the carrier should be immediately contacted at the
delivering terminal, to request an inspection. While awaiting inspection,
the consignee must hold the shipping container and its contents in the
same condition they were in when damage was discovered. The inspection
should be accomplished without delay. The carrier will send a
representative to perform the inspection or will waive inspection. If the
carrier does not respond within 5 working days, the consignee may
make the inspection himself.
See NMFC Item 300135 - Request for Inspection should
be confirmed in writing by mail.
The inspection report is
not a claim. It is the responsibility
of the claimant to file a cargo claim within the prescribed time frame and
to respond to any requests from the carrier for supporting documentation.
The claim will then be concluded based on facts determined during
investigation.
The law requires that the
claimant accomplish three things:
-
The carrier received the freight in good condition at origin
-
The freight was short or damaged at destination
-
The dollar amount of loss or damage
Section 10761 of the
Interstate Commerce Act (49 USC 10761) prohibits a carrier from collecting
any charges different from those published in the carrier’s effective
tariff. The payment of freight charges may not be postponed due to alleged
loss or damage. These charges should be paid in full and the portion
applicable to the lost or damaged item should be included in the freight
claim.
The following items are important to
remember:
-
Claims and payment of freight charges are two entirely different
transactions.
-
ICC regulations prohibit withholding payment of freight bills
because of a pending claim (Administrative Ruling No. 128)
-
Without payment of the freight charges, payment for transportation
has not been made. A valid claim will not be paid until freight charges
are made.
Salvage must be
retained until the claim is resolved, or until the claimant is given
disposition by the carrier.
No salvage is to be dumped without written authorization from the carrier.
If the claim is
declined, and the claimant feels it should have been paid, the claimant
should present his rebuttal in letter form to the examiner who declined
it. If claimant has additional information or evidence, that should be
included. Always refer to the assigned claim number when corresponding
with an examiner.
The carrier will acknowledge the claim in writing
within 30 days and assign a number which identifies the shipment.
The carrier will pay, refuse payment or make a firm compromise within 120
days after receipt of claim. In all cases make sure the carrier
involved with the claim acknowledges receipt of the claim.
13.
Claim Filing Checklist
Prior to submitting your claim, be sure to check the following items:
-
The claim must be in writing, specifying dollar amount and reason
for claim, identifying shipment, claimant name and address. Do not submit
more than one claim on each form.
-
The claim must be filed within applicable time limits.
-
Documents which should be included with a claim:
»
Original Bill of
Lading (or Bond of Indemnity)
»
Copy of Paid Freight
Bill
»
Original Invoice
Showing All Discounts
»
Repair Invoice (If Applicable)
»
Inspection Report
(If Applicable)
If you would
like advice or assistance with any aspect of your company’s claim
prevention program, please call Capital Transportation Services at
888-276-6699.
