IGNOU : M.COM : IBO 4 : UNIT 12 : Q - 3. What are the responsibilities of the insured in a cargo insurance policy?

 

Ans. Responsibilities of the Insured

It is the duty of the insured or his agents, in all cases, to take such measures as may be reasonable to avert or minimize a loss. Further, it is also his duty to protect rights of the insurer of recovery from the carriers, port authority and others. In particular, the duties of the insured or his agent are:

i) Lodge claim on the carriers, port authorities and other intermediaries for any missing packages;

ii) If the loss or damage is apparent or visible, make an application to the agents of the carriers, port authority, customs authority and the insurer (or agent) to arrange joint survey within 3 days of discharge of cargo from the vessel (7 days in case of air consignment);

iii) If the loss was not apparent at the time of taking delivery of cargo, give notice in writing to the carriers and other parties within 3 days of delivery of cargo (7 days in case of air consignment);

iv) Lodge a proper monetary claim on carriers, port authority and customs authority;

v) In case of any missing package, get a log entry made with the' port authority and lodge a claim on carrier and port authority;

vi) If missing packages are traced subsequently, clearance may be made only after a joint survey;

vii) The claims on carriers, customs and port authorities should be filed within the time, limits prescribed under the relevant laws.