Finance Life7 Situations That Can Make Your Export & Import Insurance Policy Useless By Fabnewz Team Posted on December 27, 2017 0 We buy an export & import insurance policy to get coverage in case of any loss or damage. However, we feel bitter when such situation doesn’t happen. While it is indispensable to purchase export & import insurance policy to safeguard your international consignment from a myriad of perils, it is equally necessary to understand the situations when the insurer can refuse to settle your claim.After all, even if you have the insurance policy and you are regularly paying a premium, the insurer can refuse to honor your claim.There are many such situations when your export & essential insurance policy becomes useless. These are those scenarios when export & import insurance company can refuse to settle your claim. Let’s have a look at them-Negligence in Ensuring the Safety of VesselSadly, you can’t depend on your export and import insurance to offer you coverage for those damages as well, which arise because you were negligent in maintaining the safety of your vessel. In case you fail to keep your vessel in a good state, the insurer has all rights to refuse your claim.Inadequate PackagingJust like it is inevitable to keep your vessel in a good state, it is also essential to use good packaging materials for your goods. In case, the packaging material is sub-standard, the insurer can refuse to settle your claim. To avoid such a situation, make sure to declare your packaging upfront before sending the consignment.Make a Mistake in Filing the Insurance ClaimWhether it is about submitting the claim under the wrong export & import policy, making a mistake in assessment or simply making typo errors on the important form, these are all such factors which can result in an unexpected claim rejection. Uncovered PerilsIf the loss or damage arises due to uncovered perils, i.e., those risks which are not covered under export & import insurance policy, the insurer has all rights to reject your claim. Some of the typical examples of uncovered perils are goods damaged during loading/unloading, or while in storage, damages arise due to a labor strike, earthquake-related damages, etc. It is feasible to get coverage for such perils as well, provided the policy is placed properly.Losses Due to Inherent ViceIt includes losses or damages which arise due to the product’s instability instead of external factors. For instance, ice-cream tends to melt, and coal tends to self-combust. In most of the cases, the insurer doesn’t cover losses due to inherent vice.Delay in Filing ClaimsEvery insurer has stated the time duration during which the claim must be filed. After the loss, if the policyholder doesn’t file the claim within the stipulated time-frame, it can make insurer suspicious who can further refuse to settle your claim. It means, even if you have been regular in your insurance premium payment, the insurer can reject your claim if it doesn’t receive the timely intimation.Fraudulent ClaimsWhile the majority of people use errors & import insurance to protect themselves, some of them use it as a way to earn profits. Your insurance policy is designed in a manner that it puts you right back to the place from where you started; and not further ahead of where you were.However, many insurance claims are rejected because policyholders falsify information to ‘benefit’ from the insurance policy. The purpose of insurance is to indemnify you for the losses and therefore, whenever a false claim is filed, the insurer will not only reject your claim but can also file a lawsuit against you. The health of your business largely depends on the success of your export & import insurance claim, so don’t leave anything to chance. Moreover, you are buying insurance to get financial coverage, so don’t let any unfortunate incident make your export & import insurance policy useless. Read your policy document carefully to understand those situations when your export & import insurance claim can be rejected.