Navigating the Troubled Waters: Difficulties in Processing Marine Insurance Claims

Marine insurance is a vital component of the global maritime industry, providing coverage for vessels, cargo, and various risks associated with marine transportation. However, the processing of marine insurance claims can be a complex and challenging task. In this article, we will explore the difficulties faced by insurance companies and policyholders when dealing with marine insurance claims and examine the factors that contribute to these challenges.

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Vast and Dynamic Nature of Marine Risks:

One of the primary difficulties in processing marine insurance claims stems from the vast and dynamic nature of risks involved. The shipping industry is exposed to various perils such as accidents, piracy, natural disasters, and political instability, making it inherently unpredictable. Assessing and quantifying these risks accurately can be a daunting task, leading to potential delays and disputes during the claims settlement process.

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Complex Policy Wordings and Conditions:

Marine insurance policies often contain intricate wordings and conditions, which can complicate the claims process. The policies may incorporate specific coverage exclusions, deductibles, and limitations that require careful interpretation. Understanding the policy provisions, including the terms and conditions, requires expert knowledge and a comprehensive understanding. Misinterpretation or ambiguity can lead to disputes and delays in claim resolution.

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Lack of Standardization and Harmonization:

Marine insurance is a global industry, involving numerous insurers, brokers, and policyholders from different jurisdictions. Unfortunately, there is a lack of standardization and harmonization across marine insurance policies and practices worldwide. Differences in legal frameworks, industry practices, and local regulations can create challenges when processing claims. The lack of uniformity can result in delays, inefficiencies, and inconsistencies in claims handling.

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Investigation and Evidence Gathering:

Marine insurance claims often require thorough investigations to determine the cause and extent of the loss or damage. Gathering evidence in a maritime context can be arduous, especially when incidents occur at sea or in remote locations. The involvement of multiple parties, such as shipowners, crew members, surveyors, and salvors, further complicates the process. Collecting relevant evidence, conducting surveys, and coordinating with various stakeholders can significantly prolong the claims settlement timeline.

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Jurisdictional Challenges and Disputes:

Marine insurance claims may involve multiple jurisdictions, each with its legal systems, regulations, and procedures. Disputes can arise regarding the applicable law, jurisdiction, and forum for resolving the claim. These jurisdictional challenges can lead to protracted legal battles, complicating the claims settlement process and increasing costs for both insurers and policyholders.

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Salvage and General Average Considerations:

In marine incidents, salvage and general average situations may arise, adding another layer of complexity to the claims process. Salvage operations involve specialized services aimed at preventing or minimizing further loss to the vessel or cargo. General average refers to the apportionment of the loss among the parties involved in a maritime venture. Determining the rights and responsibilities of each party and calculating the contributions can be intricate and time-consuming.

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In conclusion, processing marine insurance claims is a challenging endeavor due to the vast and dynamic nature of marine risks, complex policy wordings, lack of standardization, evidence gathering difficulties, jurisdictional challenges, and considerations of salvage and general average. Overcoming these difficulties requires collaboration among insurers, policyholders, and industry stakeholders to streamline the claims settlement process, promote transparency.

While getting coverage for your risk exposure might be easily accessible in today’s landscape, getting your claims processed is a totally different ball game.

Most business entities face significant challenges during the Claim Settlement process and a broker should be judged by the efficiency of their claims handling ability as preparing & presenting a claim can be a complex and time-consuming process.

UNISON has rapidly established its reputation across all its clients in handling claims in an efficient and professional manner. By inculcating the highest possible standard of services throughout the claims process, which includes Claim Preparation, Presentation and Fast & Effective step by step guidance to client, UNISON has been able to establish an Efficient Settlement & Claim Collection process.

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UNISON’s Claim Service includes:

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Claim Preparation

The way that data is presented to insurers is the key to optimizing claim recovery. We know precisely what information insurers require and we present it the way they demand. These speeds up the process resulting in timely Claim Realization.

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Managing The Claim Process

The quality of your claim presentation and supporting documentation is critical to a successful settlement. We will:

·?????Minimize the time you spend in claim preparation.

·?????Secure prompt stage payments to help manage your cash flow.

·?????Expedite settlement to save time & cost.

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Claim Settlement Modelling

We develop understanding with insurers on how to expedite major claims. These agreements are designed to ensure that all parties understand both the scope of the policy and the detail of claims process.