What issues should be noted when handling insurance claims?

I. Filing an Insurance Claim. Insurance claims can be divided into the following two situations:

1. If the exported goods are damaged, the other party (the importer) files a claim with the overseas claims agent indicated on the insurance policy. The People's Insurance Company of China has established two types of agencies at major ports and cities worldwide: entrusted foreign inspection agents and claims agents. The former is responsible for inspecting the damage to the goods. After the consignee obtains the inspection report, they submit it along with other documents to the issuing company for a claim on their own. The latter can directly handle the claim and make local payments within a certain authorized amount.

When the importer files a claim with China's overseas claims agent, they must simultaneously provide the following documents:

(1) The original insurance policy or insurance certificate;

(2) The transport contract;

(3) The invoice;

(4) The packing list;

(5) Correspondence or other documents requested by third parties such as the carrier for compensation, as well as documents proving the insured has fulfilled the necessary recovery procedures;

(6) An inspection report issued by a foreign insurance agent or a foreign third-party notary institution;

(7) A marine report. Loss of goods caused by maritime incidents is generally compensated by the insurance company, and the shipowner is not liable;
　
(8) Proof of cargo damage or shortage;

(9) A statement of claim; etc.

2. If the imported goods are damaged, the Chinese importer files a claim with the insurance company. When imported goods arrive at a Chinese port, airport, or inland location and are found to be damaged or short, the local insurance company must be notified immediately for a joint inspection with the local national commodity inspection authority. If the loss is determined to be within the scope of insurance coverage, the local insurance company will issue an "Inspection Report on Damaged and Short Imported Goods." Meanwhile, for any cargo damage caused by the foreign shipper, carrier, port authority, railway, or other third parties, the insurance company will pay the claim as long as the consignee has completed the recovery procedures against the responsible party. However, for issues related to the quality or specifications of the foreign shipper, according to the terms of the insurance company's clauses, the insurance company is not liable. Instead, the consignee must request a notarized inspection certificate from the national commodity inspection authority and then file a claim against the shipper through a foreign trade company.

When the consignee of imported goods files a claim with the insurance company, they must submit the following documents:

(1) The import invoice;

(2) The bill of lading, or the import cargo arrival notice and waybill;

(3) The unloading record and weight note at the final destination.

If the loss involves the shipper's liability, the purchase contract must be provided. If there is a letter of guarantee from the shipper or remarks by the shipowner, these should also be provided. If the loss involves the shipowner's liability, a tallying certificate from the discharge port must be provided. Any remarks by the shipowner should be included as well. Any case involving the shipper or shipowner's liability also requires authentication and certification by the national commodity inspection authority. If the loss involves liability of the port stevedores, or inland, river, or railway transport parties, a freight record (commercial record) and a joint inspection report issued by the responsible party must be provided.

The consignee can file a claim with the insurance company through the following channels: For losses of imported goods shipped by sea, file a claim with the insurance company at the port of discharge; for imported goods shipped by air, file a claim with the insurance company at the destination noted on the international air waybill; for imported goods shipped by parcel post, file a claim with the insurance company at the destination noted on the international parcel receipt; for imported goods shipped by land, file a claim with the insurance company at the destination noted on the international railway waybill.

II. Determining Liability and Making Payment. After the insured has completed the above claim procedures and provided all necessary documents, they can wait for the insurance company to determine liability and pay the compensation. In China, insurance companies have two methods of payment: one is direct payment to the consignee unit; the other is centralized payment to the relevant foreign trade companies, which then settle accounts with the ordering units.