First of all, the time limit for cargo insurance claims is different. Taking China Insurance Property Company as an example for domestic insurance companies, the statute of limitations for claims is valid within 2 years from the underwriting of the policy. However, the time limit for claims of foreign insurance companies is generally one year. One year is very stressful for users who are located in remote mountainous areas and have a large amount of equipment and excessive cargo. Once the claim period has expired, even if the documents are complete and the reasons are sufficient, the insurance company will no longer accept it.
Secondly, it is inconvenient to contact cargo insurance companies. Take China Insurance Company as an example. Once the user discovers damage to the goods, he can notify the local branch to settle the claim. Once the goods covered by a foreign insurance company are damaged, the user needs to notify the buyer, the buyer then informs the foreign business, the foreign business informs the insurance company, and the insurance company then informs the domestic inspection agent specified in the insurance policy.
If the user directly informs the inspection agent on the order for inspection, the user must pay a certain fee for the agent, otherwise these inspection agents will not settle the claim for the user.
Finally, foreign insurance companies have extremely strict requirements for claim documents, which are indispensable, and the procedures are relatively complicated. In addition to the original declaration, bill of lading, invoice, and packing list, the claim documents shall also provide a tally, a claim statement letter to the ship or transportation company, an inspection report issued by an inspection agent, and a beneficiary’s submission. Claim applications, etc. and other compensation documents specified in the insurance policy shall be sent to the foreign insurance company within the specified time. Once the insurance company accepts it, you should fill in the other documents required by the insurance company and send it back in time, otherwise the foreign insurance company can still refuse the compensation for various reasons.