Commonly Used Terms

Did you know that concealed damage makes up a staggering 35% of cargo insurance claims in India, totaling around ₹2,800 crores each year? The tricky part is that this damage often goes unnoticed until days after delivery, making it tough to figure out who’s responsible and how to process the claims.

Detection and Documentation Process

Concealed damage usually shows up during unpacking, installation, or the first use of the product, even when the outer packaging looks perfectly fine. To document this properly, it’s crucial to notify freight forwarding companies, carriers, and insurers right away once the damage is discovered. Key evidence includes photos of the unopened package, documentation of the damaged goods, witness statements, and professional survey reports to prove that the damage happened during transit and not after.

Claims Process and Liability

When it comes to claims for concealed damage, you need to show that the damage occurred while the cargo was in transit, even if the packaging looks intact. Freight forwarding companies work closely with surveyors, insurers, and carriers to investigate what caused the damage and figure out who’s liable. Keep in mind that the time limits for notifying about concealed damage can vary depending on the carrier and insurance terms, usually requiring you to report it within 3-15 days of delivery to keep your claims rights intact.

Prevention and Risk Management

To prevent concealed damage, it’s essential to use proper packaging design, high-quality materials, shock indicators, and handle everything with care throughout the logistics process. Freight forwarding companies can offer guidance on packaging, suggest the right level of protection, and arrange special handling for fragile items. Having comprehensive insurance coverage, keeping thorough documentation, and taking proactive steps to prevent damage can significantly lower the risks of concealed damage and the complications that come with claims.