With full gratitude and professionalism, we from Liga Asuransi We’d like to share a story about handling a claim that was both challenging and rewarding. We recently successfully assisted with a Freight Forwarder Liability insurance claim for an integrated freight forwarding and logistics company that handles the shipment of various cargo types.
This case is particularly compelling because it involves a diverse range of goods, from clothing and cosmetics to products requiring special handling during distribution. When unforeseen risks befall these shipments, having the right insurance coverage and professional assistance from an insurance broker are key to a smooth and fair claim resolution.
In this article, we want to share this experience as a form of education and inspiration for logistics business players — that every risk can be anticipated and managed well as long as there is the right protection and a reliable insurance partner.
Chronology of Events
The delivery journey began as usual. A CDDL vehicle with license plate number B 9252 FXY departed at 9:44 a.m. WIB, traveling from CGK to PLM to PGK. The fleet was driven by two experienced drivers, Syamsudin and Ardian, who had navigated numerous inter-island delivery routes. However, this trip took an unexpected turn.
On November 23, 2024, at approximately 3:10 a.m., a vehicle was traveling along Tanjung Api-Api Road, in Karang Anyar Village, Parit 10, Banyuasin Regency, South Sumatra. At the time, the road was wet and slippery due to previous rain. The vehicle’s rear tire slipped, making it difficult to control, causing it to skid and end up in a ditch on the side of the road.
Although there were no casualties, the impact on the cargo was unavoidable. Water from the ditch entered the container box, which was supposed to protect the shipment. Because the box was not completely waterproof, the floodwater seeped in, soaking almost the entire contents.
The items carried in this shipment were very diverse. The containers contained clothing, shoes, cosmetics, skincare products, groceries, accessories, and even small household items. Many of these items were packed in standard cardboard boxes without any special protection against water. Some of the packaging was swollen, others torn, and some items, such as skincare products and food, were contaminated by water mixed with mud.
This type of damage certainly raises the potential for a claim from the goods owner. In this case, the carrier—as the freight forwarder—is legally responsible for any losses suffered by third parties during the shipping process. This is where a Freight Forwarder Liability Insurance policy becomes crucial. This policy provides protection against claims arising from third parties due to damage or loss of goods that occur while the goods are in the freight forwarder’s possession, as long as they fall within the scope of responsibility stipulated in the policy.
This incident serves as a reminder that in the logistics industry, risks can arise at any time and are beyond control. Proper insurance coverage is not only a mitigation tool but also a lifeline for business confidence.
This incident serves as a reminder that in the logistics industry, risks can arise at any time and are beyond control. Proper insurance coverage is not only a mitigation tool but also a savior of business confidence. The impact not only caused physical damage to the shipment but also had a significant financial impact on the company. Affected goods, including clothing, shoes, cosmetics, skincare, and even food, were damaged by water entering the container after the vehicle entered the ditch.
The total loss due to reported damage to goods reached the figureRp. 402,930,846.00. This amount reflects the value of the loss of various types of goods belonging to many recipients.are in one shipment.
In addition to material losses, this incident also triggered other operational consequences, such as delivery delays, potential complaints from end customers, and challenges in maintaining business partner trust. In the logistics and freight forwarding industry, reliability is paramount — so a single incident can have a significant impact on reputation and the continuity of business relationships.
This is why prompt and professional claims handling is crucial, in order to maintain the stability of the insured’s business and ensure that the losses incurred do not worsen in the long term.
Claims handling in insurance Freight Forwarder Liability Claims often present complex challenges and require extra care. They involve not only complex administrative processes but also technical factors and communication between the various parties involved. Here are some of the key challenges commonly encountered in handling this type of claim:
Key Challenges in Handling Freight Forwarder Liability Claims
Every insurance claim process presents its own challenges—especially when it involves complex freight transportation, involving multiple parties, and involving significant financial losses. In this Freight Forwarder Liability claim, we faced various dynamics that required astuteness, swift coordination, and the right approach to ensure a fair and timely resolution of the claim.
- Various Types of Goods Sent
The items shipped vary widely, from clothing and cosmetics to food and even fragile items. Each type of item has its own sensitivities and requires special treatment when assessing damage. - Damage that is difficult to measure objectively
Damage from water seepage, impact, or pressure is sometimes not immediately obvious, requiring a detailed and expert inspection to determine the extent of the loss. - Unforeseen External Conditions
Bad weather, slippery road conditions, road accidents, or other uncontrollable environmental factors add to the complexity of claims. - Completeness and Accuracy of Documentation
The claims process is highly dependent on supporting documentation such as incident reports, photos/videos of the damage, minutes, and shipping documents. Incomplete or inaccurate documentation can result in a claim being delayed or denied. - Strict Administrative Procedures
Every insurance company has standards and requirements that must be met administratively. Complicated processes and bureaucracy can hinder prompt claims processing. - Coordination and Communication Between Parties
It involves multiple parties: the property owner, the carrier, the broker, and the insurance company. Miscommunication or a lack of transparency can slow down the claims settlement process. - Determining the Appropriate Compensation Value
Negotiations between the claim value and the policy coverage limit must be carried out carefully to match the real loss and not harm any party. - Claims Resolution Times Are Sometimes Long
The investigation and negotiation process takes time, which can affect the insured’s cash flow and operations.
The Role of Insurance Brokers in the Freight Forwarder Liability Claims Process
As insurance brokers, our role doesn’t end when a policy is issued. It’s when a risk actually occurs that our role becomes even more significant and crucial. In this case, we assist clients from the beginning until the claim is settled. Here are some of the key roles we play:
- Receiving and Following Up on Claim Notifications
Once the insured reports an incident, we immediately follow up. We ensure all initial information, such as the chronology, time of the incident, the type of goods affected, and initial documentation (photos, videos, delivery notes), is properly collected. This quick response is crucial to ensure the claim process is timely and processed by the insurance company.
- Assisting in Claim Document Preparation
We assist our partners in preparing all supporting documents for claims, including incident reports, cargo reports, shipping documents, and lists of damaged goods. We also assist with proofreading and organizing documents to ensure they are neat and meet the insurance company’s standards.
- Explaining the Chronology Objectively to Insurance
Every claim has a complex story. Our role is to convey the chronology to the insurer objectively, while still prioritizing the client’s position. This is crucial so the insurer has a clear and accurate picture of the cause of the loss and the carrier’s liability.
- Becoming a Communication Bridge
We facilitate communication between customers and insurance companies to ensure a smooth process. When insurance companies require clarification, we assist with accurate and easy-to-understand technical language to avoid misunderstandings that could hinder the claims process.
- Negotiating Compensation
This is where the broker’s role becomes crucial. We help calculate loss estimates and negotiate to ensure the agreed-upon compensation accurately reflects the client’s losses. We always ensure this process is fair and does not disadvantage the insured.
- Ensuring Claims Are Paid Properly
Once the investigation and verification process is complete, we continue to monitor claims payments to ensure they are made on time. We also help double-check payment details to ensure they match the agreed-upon damage value.
- Post-Claim Support
Once a claim is settled, our role isn’t over. We continue to assist clients in evaluating the incident. We provide input for improving operational systems and risk management to prevent similar incidents from recurring. Furthermore, we also assist in reviewing existing policy provisions—whether limit adjustments, additional coverage, or coverage expansion are necessary—for optimal protection going forward.
Conclusion
Handling insurance claims in the event of property damage is not easy and often requires a complex process. From the initial incident to claim settlement, the role of an insurance broker is crucial to ensure everything runs smoothly and that the client’s rights are properly protected.
This case reminds us how important it is to have the right insurance coverage and professional support when facing the risk of loss. With the right support, companies can focus on running their businesses without worrying about losses due to unforeseen events.
L&G Insurance Broker is committed to helping our business partners resolve claims quickly and fairly, and keeping their businesses running smoothly without any obstacles.
Don’t let your business be disrupted by late or rejected claims. Discuss your insurance and claims handling needs with an experienced broker who understands shipping risks and is ready to provide the best solutions.
Contact L&G Insurance Broker at 0811-850-7773 and get professional claims assistance that protects your business from unexpected risks.
