Loss Assessment, Survey Procedures, and Documentation
Scope
This domain covers the surveyor's loss assessment and documentation: what to inspect, what to collect, how to measure partial loss and how to present a defensible report.
Procedure and documents
- Confirm appointment, policy/certificate, sum insured, insured value, deductible, cover and voyage.
- Collect the bill of lading, commercial invoice, packing list, shipping documents, claim form, protest, carrier correspondence, tally sheets and delivery receipts.
- Inspect promptly, record container and seal numbers, take dated photographs, preserve samples and obtain a joint survey where possible.
- Separate sound value from damaged value at destination; record salvage, repacking, reconditioning and disposal costs.
- Check whether the loss is particular average, general average, salvage or sue-and-labour expense; each has a different claims route.
- Issue a clear report: facts, cause, policy response, quantum, deductions and reservations.
Quantum
For damaged cargo not sold, the usual measure under a valued policy is the insured value multiplied by the depreciation ratio: sound value minus damaged value, divided by sound value. Deduct the policy deductible and credit salvage.
Worked example
Insured value is ₹20,00,000. At destination, sound value is ₹25,00,000 and damaged value is ₹10,00,000. Depreciation is (25-10)/25 = 60%. The claim is 60% of ₹20,00,000 = ₹12,00,000, less the deductible and any salvage proceeds. The surveyor should explain that the ratio uses sound and damaged values, not the invoice price alone.
Traps
Do not assess damage from photographs alone. Do not ignore underinsurance, deductible or salvage. Do not sign a report without recording the cause and the basis of quantum; a figure without reasoning is easily challenged.