Post on 05-Feb-2018
16/11/2010Corporate Communications – Kuehne + Nagel Global Presentation January 2007 p. 1
NACORA Risk & Claims Services
Cargo Claims from a forwarders perspectiveIATA Conference Geneva, 10th Nov. 2010
Sgi GN
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
AGENDA
About NACORA & Kuehne + Nagel
NACORA Risk & Claims Services
Cargo Claims - Forwarders Perspective
Cargo Claims – Pre-Claims Challenges
Cargo Claims Prevention - Risk & Claims Management
Cargo Claim Prevention - Contractual solutions
Cargo Claims Prevention - Insurance solutions
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
• Since 1972 it has been NACORA's core competence to support companies in the design and building of cost-effective insurance programmes.
• NACORA is an independent operating commercial insurance broking firm specialising in the provision of risk management and insurance solutions, products and services.
• Its network of offices spans thirty countries from where NACORA deploys insurance, claims and risk management specialists serving customers in all industry sectors throughout all the major economies.
• Member of the Kuehne + Nagel Group
• Our corporate head office is in Schindellegi, near Zurich, Switzerland
• Visit our web page under www.nacora.com
About NACORA & Kuehne + Nagel
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
NACORA RISK & CLAIMS SERVICES
Division of NACORA Insurance BrokersNACORA organizes & handles Kuehne + Nagel cargo liability claimsIt operates 7 KN claims centres worldwide (Hkg/Sao/Bue/Rtm/Sto/Vie/Nyc) NACORA also provides TPA services to the insurance industry and international commerceNACORA ensures that claims processes are streamlined to the maxProvides advice in transport liability matters
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
CARGO Claims - Forwarders Perspective
Frequent types of loss
Main risk is the physical loss and damage to goods
Financial and Consequential loss claims resulting from E&O(cross labelling; insufficient documentation), delay
Overall low loss ratio compared to other business fields
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
CARGO Claims - Forwarders Perspective
Frequent defendants
Pre- and on carriage carriers (70%)
Terminals & handling agents(30%)
Airlines
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
CARGO Claims - Forwarders Perspective
Frequently affected commodities
PharmaceuticalsMedical EquipmentMachineryPerishable Cargo
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
CARGO Claims - Forwarders Perspective
Recommendations
Clear communication and documentation of temperature instructionsFaster response times Waiver of requirement for destruction certificates
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
CARGO Claims - Forwarders Perspective
Challenges
Identify the capacity of the freight forwarder
As freight forwarding agent
As contracting carrier (HAWB)
As Multimodal Transport Operator
As party to a transportation or logistics agreement
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
CARGO Claims - Forwarders Perspective
Challenges
Freight forwarding agent
Exercise due diligence and care in the adequate selection of theactual carrierEnsure that no other actions lead to an actual carrier status, ensure you remain:
– Link Between Parties– How Interpreted in Law– ACT’s on Instructions– Fixed Disclosed Fee– Issuance of HAWB
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
CARGO Claims - Forwarders Perspective
Challenges
As “Contracting” Carrier (HAWB issued)
Protected by the conditions on the HAWB which will in most casesbe back to back with international conventions MC/WCClaims must be addressed to the station that issues the AWB/HAWB Geographical claims handling coverage required
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
CARGO Claims - Forwarders Perspective
Challenges
As Multimodal Transport Operator As party to a transportation or logistics agreement
Different knowledge level in transport law and insuranceUnknown place of damage or lossUnknown details about second tier subcontractorsImmense commercial pressure from the client sideNo global convention or industry STC body to rely uponUnbalanced bargain position forwarder – multinational companies
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
Cargo Claim Prevention - Risk & Claims Management
Get the Process Right :
• Reserve letter• Claim acknowledgement letter• Claims reporting • Professional handling & recoveries
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
Cargo Claim Prevention - Risk & Claims Management
Claims Database
e-claim –Claims Database
16/11/2010Corporate Communications – Kuehne + Nagel Global Presentation January 2007 p. 15
IATA Conference Geneva Nov 2010
Cargo Claim Prevention - Risk & Claims Management
File RefType Of
Movement Claim NoClaimant
Name Claimant Address Defendent BranchResponsible
Carrier
1485-7637-506.031-01 FO ML0268/08 Customer X
C/O Paint UK Ltd, Plant A/P, Box 261, Silver fox way, Newcastle
Forwarding UK Newcastle ITC
1485-7637-508.021 FA ML0301/08
Customer XBass Company Summer Road, Seaton Delaval, Roosendaal
Forwarding NL Rotterdam XS Airline
1485-7637-510.027 FY ML0374/09
Customer X 3D graphics Kralingen, Rotterdam
Forwarding NL Rotterdam
Schipol AmterdamGround handling
sort by customer mode of transport and carrier
16/11/2010Corporate Communications – Kuehne + Nagel Global Presentation January 2007 p. 16
IATA Conference Geneva Nov 2010
Cargo Claim Prevention - Risk & Claims Management
Claim No Claimant Name Description Of Incident
No Of Packages Missing Or Damaged
Weight Of Packages Missing Or Damages Incident Currency
Amount Claimed
Responsible Carrier
ML0268/05 Customer XGoods received wet damaged 1 plt 420 kg Damaged EUR 48’000.00 ITC
ML0301/05 Customer X
Goods received wet damaged
6 crt 70 kg Damaged EUR 16'013.60 XS Airline
ML0374/05 Customer XGoods received wet damaged 2 crt 24 kg Damaged EUR 1'728.00
SchipolAmterdamGround handling
sort by incident andsort by customer, mode of transport,carrier
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
Cargo Claim Prevention - Risk & Claims Management
Monitoring and analysis of claims information
• Process optimisation (survey)• Quality management support & carrier evaluation• Claims reserve and recovery management• Claims Reporting• Contract optimisation• Insurance Solutions
REDUCTION OF RISK
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
Cargo Claim Prevention - Contractual solutions
Identification of services and risks is essential
Assess scope of work Define in what capacity you wish to act (Carrier/Agent)Incorporate industry standards (S.T.C.) BIFA, Fenex, ADSp, Spedlogswiss, HAFFA, or international conventions Allow for professional review of contractsIdentify and eliminate any uninsured / uninsurable risks
Always incorporate straight claims handling procedures
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
Cargo Claim Prevention - Insurance solutions
Reason:
Cargo Value: 50’000 EURFreight forwarders profit at 10% of freight charges: 100 EUR
Freight forwarder cannot absorb full value liability or insurance costs
NACORA Sgi GN / 2010
IATA Conference Geneva Nov 2010
Cargo Claim Prevention - Insurance solutions
Solution:
Cargo Interests must adequately insure their cargo, to have bestpossible protection.
Cargo insurance meets the commercial expectations in respect of:– Full value cover– Fast claims handling and settlement– Scope of cover
All risk insurance Costs for an general cargo air shipment EU-US worth 50’000 USD are approximately 113 EUR.