Insurance & Freight Claims

A claim is a written statement that:

• Identifies a specific shipment
• Provides a description of any loss or damage pertaining to the shipment
• Request a specific sum of money
• Provides reason(s) why Pegasus should be held liable.

A claim may be filed by the shipper, consignee, or owner of the goods. Be sure to clearly indicate the following as they will in assist in the prompt conclusion if the claim:

• Name and complete address of the claimant
• Telephone number, fax number and e-mail address (if available)

A “Notice of Intent to file Claim” is a written statement that advises the carrier that damage was found and noted at the time of delivery. It also alerts the carrier that a formal claim and supporting documents will follow. This document is extremely important being that it satisfies the requirement of alerting the carrier within the allotted time frame documented in the terms and conditions of the bill of lading.

Note

An inspection report or notation on the delivery receipt does not constitute a notice of claim.

ber and e-mail address (if available)

Claims should be presented/ filed promptly to allow investigations to take place while facts are reasonably “fresh”.

• Verbal notice of damage does not constitute the filing of a claim
• A Notice of Intent to Claim must be filed in writing within (48) hrs from the date of delivery for shipments noted damanged.
• A Notice of Intent to Claim must be filed in writing within (72) hrs from the date of delivery for shipments with concealed damange. Consignee must retain original shipping carton and contents and make them available for inspection.
• All claim forms will need to be filled out completely (including claim amount) in order to be considered valid.

The Claim Package should include the followings:

1. Claim Form – A formal demand for reimbursement for cargo loss or damage which includes the claimant, damage descriptions and the amount being claimed.
2. Proof of Value Original vendor’s invoice – complete original invoice which verifies the claimed amount does not exceed the terms of sale (value of good at destination), and excludes any prospective profit. The original invoice must disclose all discounts and allowances if any. A clear photocopy of the complete original invoice is acceptable.
3. Legible copy of freight bill or paid freight bill/s, if available – Include the original paid freight bill or a signed statement verifying freight charges have been paid in full on the shipment against which the claim has been filed. For a claim to be concluded, all freight charges must be paid.
4. Delivery Receipt (POD) – Receipt showing the exceptions indicated and acknowledged by the driver, this serves as evidence of receipt and condition of the goods when they arrive at final destination.
5. Original bill of lading – serves as evidence of the receipt, as well as the kind, quantity, and apparent condition of the goods.
6. Invoice for repair (if applicable) – serves as evidence of the receipt, as well as the kind, quantity, and apparent condition of the goods.
7. Photos of Damaged Goods – serves as visual evidence relating to the verification of the damage.
8. Packing List
9. Carrier Inspection Report (if applicatable)

The following terms are not acceptable on a delivery receipt and will not substantiate a claim as they are too vague and unclear:

• Subject to inspection
• Subject to count
• Damages

Concealed loss or concealed damage means that no one has noted any external evidence of the loss or damage which is discovered when the consignee opens the package on or after delivery. In order for this type of a claim to be considered, the claimant must provide conclusive evidence that the damage or shortage occurred while the shipment was in the possession of the carrier.

When the damage to contents of a shipping container is discovered by the consignee that could not have been determined at time of delivery, it must be:

• Reported by the shipper or consignee to Pegasus Logistics within (72) hours of delivery.
• A request for inspection should be made at that time.
• All merchandise must be maintained in the original shipping container, in the same condition it was in when the loss or damage was discovered.

• If, after our investigation of the damage it is indeterminable which party was negligent (consignor, carrier or consignee), the carrier may make a compromise settlement offer.
• It is the choice of the claimant to accept or reject the compromise offer.
• Compromise offers are generally divided in a manor where each party shares (consignor, carrier or consignee) 1/3 of the responsibility for the loss.

Declaring value simply raises the financial legal liability of the carrier beyond the limitations stated on the carrier’s or forwarder’s freight bill, tariff or other contract of carriage.

Declaring value simply raises the financial legal liability of the carrier beyond the limitations stated on the carrier’s or forwarder’s freight bill, tariff or other contract of carriage.

Payment of freight charges may not be delayed due to alleged loss or damage. Charges should be paid in full and the portion applicable to lost or damaged item included in the freight claim.

Remember:

• Claims and freight charges are two entirely different transactions
• Without payment of freight charges the transportation contract has not been completed.
• A valid claim must not be paid until freight charges are paid.

To prevent loss and damage during normal transportation handling, the shipper has the following responsibilities:

• Proper packaging.
• Proper markings on the packaging.
• Proper description on the shipping papers.

• The recipient must carefully identify and document loss and/or damage on the delivery receipt at time of delivery.
• When recording loss or damage, the recipient should use specific details and try to avoid general or generic terms such as “box damaged” or “torn”. This type of notation does not provide adequate support for your claim.
• Please note: A notation of “subject to inspection,” by itself, is not considered a valid notation of loss or damage.

• Claimants have a legal obligation to mitigate claims and reduce the damages as much as possible. This can be accomplished through:
  • Repair – Claims for repair should reflect the claimant’s cost for parts and labor.
  • Sorting damaged and undamaged pieces to reduce the quantity being claimed (see labor rate in the section titled Claim Filing).
  • Cutting sheet, roll and wire goods to salvage and reuse as much material as is possible.
  • Sale through the most profitable means available. (Claim would then reflect the difference between the destination value and the amount recovered through the secondary sale.)
  • Retaining damaged but usable goods for an allowance.
  • Any other means resulting in a reduction in the claim equal to or greater than that which the carrier may have obtained through salvage of the goods.

If the claim has been declined and the claimant has additional information:

• Always refer to the assigned Waybill/claim number when corresponding with the Claims Analyst.
• A rebuttal letter should be sent to the Claims Analyst.
• The rebuttal letter should clearly indicate why the claimant believes the claim payment should be reconsidered and include any evidence or documentation not previously submitted.

Claims should be filed promptly to allow investigations to occur while facts are fresh, and must be submitted within 60 days of delivery with full payment of freight charges – minimum $50. Filing a claim will protect any rights you have under the Bill of Lading.

Step 1. Accept The Freight

Please refrain from refusing freight, and take all the necessary steps to minimize the loss.

As claims are only paid out on the damaged portion, rejecting the whole shipment may result in unnecessary loss of undamaged product and associated revenues. Falcon is not responsible for any loss incurred from not accepting the freight.

Step 2. Document The Damage

Any visible discrepancies should be marked directly on the Bill of Lading or the delivery receipt. Indicate a count and be as specific as possible, ensuring the driver initials the exceptions.

Ex. 3 boxes on top row cruhsed.

It is strongly encouraged to take pictures of the freight upon arrival. Make sure t odepict the nature of the claim and include the packaging in your photos.

Damages discovered upon unpacking or uncrating are considered concealed and not covered under carrier liability. Please contact your shipper or supplier for compensation.

Step 3: Send A Notice Of Intent

The party responsible for the freight charges must submit a Notice of Intent in writing to Falcon’s Claims Department within 60 days of delivery. The Notice of Intent can be waived if a complete claims package (Step 6) is submitted within the same 60 day time frame, or if the shipment is missing.

Fax: 909-895-7579

Email: contact@falconlog-lax.com

A Notice of Intent should be on your own letterhead and must indicate details of the shipment:

Falcon HBL/HAWB #

Date of the shipment

Pick-up (Origin) address

Delivery (Destination) address

Delivery (Destination) address

Step 4: Retain Salvage

All salvage must be retained until investigations are completed. If disposal is required, you must advise Falcon and obtain written authorization from the Claims department beforehand.

Step 5: Pay Freight Charges

In order for your claim investigation to begin, all freight charges related to the shipment must be paid in full. A proof of payment is required as part of the claims package submitted (Step 6).

Step 6: Submit Claims Package

Claims packages must be submitted with supporting documentation no later than 30 days from the date of shipment. Inadequate submissions can cause delays in investigations and settlement. The following documentation must accompany the claim package:

Proof of freight payment for the shipment in question.

Please allow 30-90 days for investigation. Once a decision has been reached, a formal letter will be sent explaining the resolution process. Any settlement reached will be reflected on your statement of account.

• We will check to see if the damage was noted at the point of origin and therefore was not caused in transit.
• We will review photos to see if there is an obvious cause of the damage.
• We will research in order to see if there is any indication that the cargo was not properly packaged or prepared for shipping.
• If there are indications that the damage was caused in transit then we will proceed with processing the claim.
• If it appears the claim will or may exceed $1,000.00 (deductible) we will notify our insurance carrier who will assign an adjuster.
• They may require inspections of the cargo, interviews, and support documentation.
• Unless there are substantial indications that the carrier is not at fault, a repair cost will be determined and paid.