Marine claims require a varied skill set to manage.
The unpredictable nature of the marine environment means that claims for enormous sums can be easily traced back to a simple cause and quickly resolved with little effort.
Conversely, there are claims which can have very modest value but whose causes are buried deep in complex contract chains with varying terms. These are therefore infinitely harder and more time consuming to resolve.
Marine Judge operates on several levels and providing a different service depending upon the complexity, value, and urgency of any given claim. Thereby providing the services to assist in any claim matrix from the most basic recovery, up to a full-blown arbitration or trial.
Recoveries and Subrogations
Cargo that is shipped by marine or land based transport companies is insured in accordance with the Sales Contracts used (CIF, CF, FOB etc).
In the event of damage in transit to any cargo, a survey of the damage caused is commissioned. This starts the process of Recoveries and Subrogation.
Causes of damage can be:: fire, water ingress, infestation, poor stowage in transit, pilferage. Many of these causes are insured perils in the assured’s insurance policy for the cargo; and on which any 1st class underwriter will be liable to pay out under the insurance policy.
Once the nature and cause of damage is established, notification of the damage and its origins must be passed to underwriters via a report by authorised agents. Subsequently, the claims process begins.
MJ’s processes assist and guide an assured, whose cargo has been damaged, to confirm if their claim for a recovery should be honoured by their underwriters.
During the initial stages of this process, MJ will review the survey reports compiled by on-site surveyors, calculate the quantum of loss that can be claimed, and assist the assured to file the claim with their underwriters. Ordinary recovery periods can range from a matter of days to some months depending on the nature and complexity of the claim. MJ incorporates humans-in-the- loop who can further assist the assured in the event that an underwriter shows any reticence in settling or rejecting any cargo claim that is deemed to have merit.
Conversely, underwriters who have settled claims in organisations such as P & I Clubs; Hull & Machinery Syndicates, Cargo Insurance, and Time Charterers’ Liability Organisations, can use MJ to assist in preparing for the subrogated action of a claim; and on which the underwriter seeks to recoup the sums paid to their assured. Normally once paid, an assured will have subrogated their claim to their paying underwriters. This then allows for the subrogated recovery action for the underwriters against a third party wrongdoer to be made. The circuity of the claims process provides the advantage of re-using the claims data that has been collected at first instance.
By continuing to manage the overlapping processes of recovery and subrogation, and with the support of AI technologies applying natural language processing and optical recognition techniques, all of the claims data provided by an assured and/or an underwriter can be held on the database and used to support the claim and have it resolved with alacrity.
Where underwriters or third party wrongdoers request accurate assessments of loss values, legal validity, or background information before moving to subrogation, MJ’s claims processing system can provide immediate documentary support, and make the claims process smoother and infinitely less expensive for the assured and underwriter alike.
Claims Service for Insurers
MJ is a specialist platform for cargo claims that are covered by marine and non-marine transit insurance companies.
In many cases, the incoming claim volumes for these insurance companies can trough and peak over the trading year; this occurs as a result of natural phenomena (such as pandemics), international trade disputes such as embargoes, marine casualties, and other unforeseen events.
MJ can continuously assist insurance companies with quick solutions for the management of cargo claims. MJ’s scope can be to provide an isolated assessment on the merits of any claim to a more intensive day-to-day operational service on larger claims.
From the receipt of the claims notification to the cargo underwriters right through to the final settlement of the claim in the form of a cash recovery or to a conclusion via dispute resolution forums in arbitration or litigation – MJ can provide assistance to the assured.
MJ’s process, from both AI and H-i-t-L knowledge in the area of cargo claims, provides advice, jurisdictional scope, and the commencement of arbitration or litigation if necessary to resolve the outstanding claim on behalf of underwriters against third parties who may be liable for the damage, i.e. shipowners, charterers, port terminals, stevedoring companies etc.
Cargo claims can be complex making their causes of damage difficult to isolate, particularly in the cases of containers, but also in bulk and break bulk cargoes. Damage to cargo caused by fire, inherent vice, insufficient lashing, infestation, flooding and poor monitoring are examples that MJ users have experienced on their claims in recent times.
Incidents which impact the cargo in most cases also create claims for the shipowners by way of damage to their Vessel and equipment. MJ works on all of the forms of contractual conditions in the hull underwriting field; the Nordic Marine Insurance Plan, the English Institute Time Clauses, the American Institute Hull Clauses and the German ADS/DTV Clauses. MJ is linked to a network of global correspondents who can collect and submit real time evidence to H-i-t-L for fast uptakes and assessments of any maritime claim caused by an insured peril at sea. Further assessments are carried out in respect of collateral damage from these claims such as pollution, crew injury, transhipment of cargo for mitigation purposes
Specialist Solicitors in LMAA, LCIA, ICC Arbitration and English High Court Proceedings
Claims that are generated following breaches of terms in international sale contracts, e.g. damage to cargoes, vessels, port installations; or crew injuries, are usually covered by policies of marine insurance issued in the London market or other insurance markets around the globe.
Such policies usually include a law and jurisdiction clause which calls for a governing law and a forum where any dispute can be resolved. The LMAA (London Maritime Arbitrators Association); LCIA (London Court of International Arbitration); ICC (International Commercial Court of Arbitration; and the High Court in London are all forums which are included in the policies to resolve disputes.
MJ will process claims in such forums and other around the world in shipping hub cities, such as SIAC in Singapore and HKIAC in Hong Kong.
In the event of a dispute in respect of payment by an underwriter (P & I Clubs, Hull or Cargo Underwriters, Fixed Premium Organisations) or a contractual counter party (Charterers, Shippers, Receivers, Owners,) any dispute related to global trade will invariably find its way into one of the above forums where an Award or Judgment can be published to resolve the dispute.
Consequently, since most disputes in the marine and international trade sector are governed by English Law, MJ’s conjunction of AI and H-i-t-L English law driven claims assessment is well placed to assist any party in the shipping sector to properly and quickly assess their claim status.
MJ’s AI claims assessment can collate the facts of any marine dispute and by superimposing similar case precedents and legal nuances from the MJ database of arbitration and litigation results, provide the user with an expected result of his claim were he to proceed with arbitration or litigation. Additionally, where a specific point requires detailed examination, such as perhaps the interpretation of a drafted express clause in a Charterparty, Bill of Lading, Airway Bill, or CMR document; MJ further assist the users with such a step. This process assists the user by not only providing him with a specialised answer to the outcome of his potential claim, but assists in any future claims by adding data to the AI process thereby making it more accurate. Accordingly, over the time, more knowledge is assimilated into the MJ database which makes case specific responses more accurate.