When the policy has been issued the risk for the peril insured against is covered. The contingency against which protection is given or not materialised when the loss insured against actually occurs, the insured has got to make a claim on the insurer for in-densification of loss. If loss does not occur, no payment would be made to the insured.
Before admitting a claim, relevant evidence in connection with the policy is required. In marine insurance the policy is generally issued on mutual understanding and Good Faith of both the parties.
But, at the time of claim, the insurer should satisfy him on the information furnished by the insured. Value of subject-matter, nature of the subject matter; warranties, insurable interest, etc. are some of the matters to be considered at the time when the claim arises. For these purposes, the production of certain documents becomes necessary.
Notice of Claim:
A prompt notice of claim by the insured is required. The receipt of notice or approval of the course of action taken by the insured does not mean that the liability of any loss is acknowledged. The damage notice must be given prior to survey by insurer’s representative and the survey report signed by him.
The compliance with the rules of notice is necessary to enforce the right of recovery of the loss by the insured.
After the notice, the insured must take delivery of the damaged goods at once or otherwise deal with the damage because the insurer is not responsible for further and continued depreciation of the interest damaged.
In case of any theft or pilferage, the insured must give notice to the insurer within 10 days from the date on which the risk expired.
If ship owner is also liable for any loss or damage, he or his agent is also entitled to a written notice. The notice is generally given at the time of taking delivery of goods.
But if loss could not be determined or detected before such delivery, the notice is to reach the ship-owner or his representative within 3 days of the delivery. The notice is an important factor in the matter of claim.