Marine Loss Assessment, Damage Survey and Claims Handling
This domain tests how a surveyor investigates a marine loss, separates cause from extent, quantifies the claim and reports it so the insurer can decide liability. Expect questions on preliminary surveys, reservations, repair competition, deductibles, betterment, CTL and documentation.
Core rules
- The surveyor records the appointment, documents inspected, persons interviewed, survey attendance and weather or sea conditions. Photographs and measurements must be dated and traceable.
- Cause and extent are separate findings. The surveyor should state the proximate cause, then quantify only damage falling within the policy.
- Repair estimates should be scrutinised line by line; competitive yards, class approval, drydock costs, removal of wreck and salvage are considered.
- Deductibles, policy limits, insured value, depreciation, betterment, new-for-old and pre-existing damage are adjusted as the wording requires.
- A constructive total loss arises where repair cost exceeds the insured value or the vessel cannot be repaired economically; wreck value is credited.
Worked example
A collision damages a hull. The yard quotes ₹1.2 crore, but the surveyor finds ₹20 lakh relates to owner's upgrades and ₹10 lakh to pre-existing corrosion. The deductible is ₹5 lakh. Allowing ₹90 lakh insured damage and deducting ₹5 lakh gives a recommended ₹85 lakh, subject to policy limit and any recovery from the other vessel. The surveyor reserves rights pending final invoices and class approval.
Traps
Do not accept the yard's total invoice. Do not mix pre-existing damage with collision damage. Do not omit the deductible or policy limit. Do not declare a CTL without wreck value and notice. Do not give a final liability decision; recommend, do not adjudicate.