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MARINE INSURANCE All the disclaimers and limitations of liability written on the suppliers’ and shippers’ invoices are meant to discourage you from suing, yet suppliers and shippers still have substantial responsibility for the items they transport. Marine Insurance companies act as banks and lawyers. They forward money to you for damages, and then sue whoever might be to blame—suppliers, forwarders, shippers, ports, or truckers. You relinquish to them your right to claim. Be sure that your policy covers at least 2 months storage in the warehouse at port of origin and 2 months storage after the shipment arrives. It should be extendible to cover up to six months at origin and/or destination Most of the policies sold can be extended to cover 12 months at the warehouse in Israel; some can be extended up to 18 months or longer. The policy must cover all damages from arrival at the shipper’s warehouse or pickup by the shipper until the point you take possession of your goods or until they arrive at your home. Notify your insurer of the following information as soon as you begin your shipment: a. Name, address, phone in USA and Israel b. Approximate date of shipment c. Name of boat or airline d. Whether shipment will be stored in the USA or Israel and for how long e. A list stating USA values and replacement values in Israel. The deductible, that part of a claim that you pay, is a flat fee of $100-200 or a percentage—often 1%--of the total insured value of the shipment. Kef’s policy has a $100 deductible on the whole claim. Insurance must be for replacement value in Israel. For appliances, this means 3.5 times the cost in New York. For European appliances, 1.6-2.0 is usually enough. For household goods and furniture, 2.0-2.5 times is appropriate. Valuable collectibles are usually insured at 1-1.5 times their replacement value at point of shipment. Everything must be insured. You cannot insure only the fragile goods or the items that you care about. If a shipment is insured for only part of its actual total replacement value, the insurance company has the right to pay back only that percentage of any claim. Fine art objects and expensive rugs above a certain value-- $500 or $1,000-- must have receipts or an appraisal certificate accompanying the request for insurance. Storage Marine insurance extensions to cover storage are possible through the Kef Open Policy. Many other marine insurance policies do not permit extensions beyond 2 weeks, and not at all in private storage. The Kef policy allows indefinite extensions at a cost of $2/$1000/month, given proper conditions and notification. The Kef policy covers 2 months at origin and destination at no extra charge.
MARINE INSURANCE: WHEN THE SHIPMENT ARRIVES 1. You are obligated to do everything in your power to reduce damages. This means: A) Clearing a shipment as soon as possible—or buying an extension of your policy. Not all policies agree to extensions at the port. Kef’s policy does. In fact we have stored and insured shipments for years at the ports.
C) If there are strong reasons to suspect damages, requesting that the goods not be cleared and that an inspection be performed by Customs together with a surveyor assigned by your insurance company. Upon delivery to your home, if damages are suspected, do not sign documents stating that the goods were received in good condition unless you have inspected them. Otherwise write ‘goods uninspected’ on the delivery receipt. 2. Claims must be made within a reasonable time of clearance of the shipment. Policies often say that you have 3 days in which to notify the carriers of loss or damages, 45 days to notify the insurance company, and another 45 days after notifying to submit all relevant documents. Insurance companies can be liberal, but inform them if your unpacking will take more than a few days, or at least let them know that you have been delayed and that there might be a claim. Let the marine insurance company know if you are planning to delay installation of your appliances. Until you use the appliances, it will be impossible to be known if they were damaged in transit. Note that if a machine does not operate properly, it may be because of a manufacturing defect unrelated to transport. (See above ‘If an electrical appliance arrives defective.) MARINE INSURANCE: IF THERE ARE DAMAGES Call your insurance company’s agent and inform them of the damages. Send letters to the various carriers holding them liable for damages. In case of missing items, contact the shipper to make sure that the goods were not left behind. Send a registered letter to the insurance company repeating the notice of damages and include copies of the letters to the carriers. The insurance company may assign a Shamai (surveyor) who will contact you and arrange to see your damaged goods. You can request that a recognized expert in the field of the items damaged (i.e. appliances, furniture, glassware, etc.) perform the survey. If the insurance company insists on using their own surveyor, you can hire your own expert for a second opinion at your own expense. If he does the repair work or arranges the replacement, you may be able to add the cost of the survey to the claim. Damaged goods—even broken glass—and packing materials which contained damaged or missing goods must be kept until the surveyor comes. Make sure that damages are written down in detail and that photographs are taken. The surveyor will request that you give or send him copies of a: clearing documents from the Customs clearer, b: the bill of lading from the agents of the shipping company, c: packing list from the forwarding company, d: original stamped certificate of insurance, and e: inventory of items shipped and their insured values. After you have supplied all the documents required, the surveyor writes up his recommendations and sends them to the insurance company. You should not wait more than a month for a reply. The insurance company reviews the file and makes a suggestion of suitable compensation. They may or may not consult you before coming to a decision. Do not underestimate the power of friendly persistence and thoughtful negotiation. When you have agreed on an amount, the insurance company will prepare a SUBROGATION LETTER for you to sign. This letter states that you accept their offer as complete and that all other compensations you collect from anyone belongs to them. Lost goods that are subsequently found or goods credited as total loss BELONG to the insurance company. If they are paying for repairs, it is THEIR OPTION to pay you the money or to pay the repair people directly. If part of a set is broken, they are obliged to pay only for the part—not the whole set. If you discover something missing from your shipment after it has cleared Customs, it is unlikely that Customs will agree to erase it from your Teudat oleh unless you notify them immediately in writing of the shortage or the freight forwarder sends them written notice that they neglected to ship the item. If the shipper did not forget it and there are no signs of your shipment having been broken into en route, the insurance company will consider paying full replacement value in Israel only after you prove that you no longer have rights to import that item tax-free. If you did not purchase marine insurance covering warehousing at origin, the insurance company may not offer to pay or only offer USA replacement value. In any case, a shortage where there are no signs of break-in is considered to be an inside job, not covered by the insurance. If you find this unreasonable and persist in your claim, the insurance may agree to pay for 50-75% of the loss. Marine Insurance PolicyKef International and Pac Global make every effort to provide the best possible service and provide fair and appropriate compensation. If you do not insure something for full replacement value at destination, you will not receive appropriate compensation. The more detail you give, the easier your claim will be. Insurance fraud will be aggressively pursued to the full extent of the law. HOUSEHOLD GOODS/PERSONAL EFFECTS
TERMS AND CONDITIONS
SCOPE OF COVER: Always subject to the due premium having been paid and the funds collected and subject to all terms and conditions of this Policy – new and/or used household goods and personal effects, under deck, are insured against ALL RISKS of direct physical loss or damage from any external cause, irrespective of percentage (Current American Institute Cargo Clauses, including “War Risk” Insurance and S.R. & C.C. Endorsement Warehouse to Warehouse Transit Clauses and Marine Extension clauses), including General Average and Salvage Charges, and transshipment, if involved. Shipments on deck and subject to an “On Deck” Bill of Lading are insured for FPA coverage only. Containerized shipments on deck are insured per under deck “All Risk” clauses. TERRITORIAL CONDITIONS: A. Coverage is to apply from such time as packing shall commence at origin residence and be continuous during normal course of transit until unpacking is completed at destination residence provided that all other Terms and Conditions of this Policy are met. B. Coverage at warehouse of country of origin or after arrival at warehouse of final destination is provided for up to 120 total days, warranted that the property is stored in enclosed protected warehouses. C. Storage coverage extension may be granted subject to prior notice and payment of additional premiums to PAC GLOBAL, as per the Storage Extension Request Form, forming part of this Policy. Extension is subject to approval and validation by PAC GLOBAL. CONDITIONS AND EXCLUSIONS: 1. 100% Co-Insurance Clause: The insured shall at all times maintain insurance on 100% value of his shipment to the extent of the actual cash value at destination (replacement cost less normal depreciation) or to the extent of the replacement cost at destination (replacement value at today’s replacement cost), at the time of loss or damage and failure to do so, the Insured shall to the extent of such deficit, bear his or their proportion of any loss or damage including labor charges. 2. High Value Items Clause: High value items and/or items not normally shipped in a household goods shipment and valued at over $500 per item or set must be specifically declared and valued prior to issuance of the Certificate. Failure to comply with the requirements will limit recovery to a maximum of $500 per item or set. High Value Items are defined as, but not limited to the following: Antiques, objects of art, valuable carpets, furs, china, crystals, silver and gold items, firearms, collection of records, tapes, pictures, paintings and other like goods. 3. Pairs and Sets Clause: Any article which is part of a pair of a pair or set, the measures of loss or of damage to such article or articles shall be the reasonable and fair proportion of the total value of the pair or set giving consideration to the importance of said article or articles 4. Percentage of Glass, etc.: Warranted that maximum percentage of Glass, China, Marble, Earthenware and the like does not exceed 15% of the total sum insured, or H/C. The foregoing does not apply if loss or damage is caused directly from, stranding, sinking or collision of the Vessel or collision or overturn of transporting land conveyance. The foregoing also does not apply if such articles were professionally packed. 5. Repair and Replacement Clause: The Insurer shall be entitled at its sole option to replace, with like kind and quality, or repair any article damaged (whether wholly or in part), or to pay cash, in any event not exceeding the insured value thereof. Always provided that in the event of replacement or cash payment for actual or constructive total damage, the item is surrendered to and becomes the property of the insurer. 6. Depreciation: Underwriters liability is restricted to the reasonable cost of repair and no claim is to attach hereto for depreciation consequent thereon. 7. EXCLUSIONS: The following claims are excluded: A. Marring, scratching, chipping and denting of used electrical appliances and used furniture. This exclusion will be deleted if a “Statement of Condition” is reflected on the packing list or assured’s inventory list signed by both the mover’s agent and the Insured. B. Loss or damage due to mechanical, electric or electronic derangement unless insured item is otherwise damaged, and/or mechanical defects otherwise covered by a manufacturer’s warranty. C. Loss or damage due to mold, vermin, moth wear and tear and gradual deterioration, termites, rodents, inherent vice, rust, seizure or confiscation by authorities, consequential loss or damage. D. Owner Packed Effects – breakage’s, scratching, denting, marring, chipping, staining, and tearing owner packed effects, including trunks, suitcases and the like. Also, excluding claims for missing items unless a valued list of contents is supplied by owner prior to commencement of transit. E. Loss of or damage to cash, notes, stamps, coins, deeds, tickets, traveler’s cheques, jewelry, watches, trinkets or similar valuable articles. E. Climatic Conditions Clause – Loss or damage by climatic conditions or extremes of temperature. AUTOMOBILES, MOTORCYCLES OR MOBILE HOMES Coverage is to apply for the time the vehicle is given into the custody of the freight forwarder or steamship company, for up to 60 days whilst stored at warehouse of origin, and continues until the vehicle is delivered to the point of final destination, and whilst stored for up to 30 days only at the warehouse of destination, always provided that it is not operated on public or private roads under its own power for the whole period defined above UNLESS: 1. Operation under its own power occurs for distances not exceeding 10 statute miles during transit between conveyances. 2. Operation under own power occurs whilst on premises of loading or unloading port and subject to the following exclusions/conditions: A. Vehicle to be loaded on board vessel in strict compliance with all safety measures of carriage. B. Excluding all third party risks whilst being driven under own power and this insurance does not cover any damages, injury or liability to third party under any law requiring vehicles to be insured against third party risks or liability. C. Scratching, denting or marring of automobile or motorcycle or mobile home unless the freight forwarder and the owner of the automobile or mobile home both agree and sign a “Certificate of Condition” or a similar document, stating the condition of the automobile or motorcycle or mobile home at the same time entered the custody of the freight forwarder or steamship company, noting all defects, if any. D. Coverage in respect of non-factory installed accessories or removable items on an automobile or motorcycle or mobile home unless specified. E. Any coverage whilst on deck specifically excluded. Apart of the specific conditions mentioned above, coverage in respect to automobiles, motorcycles or mobile homes is subject to the general terms and conditions of the Policy, where they do not conflict with the specific conditions. PAC GLOBAL INSURANCE BROKERAGE INC. 9841 Airport Blvd Suite 1108 LA, CA 90045 USA Phone (310) 645-2911 Fax (310) 645-4461 License #0774170
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