TIPS ON RECEIVING GOODS, FILING CLAIMS

As a service to our customers and to assist in protecting your interests, we have drafted the following summary of basic freight receiving and claim processing requirements.

1. On receiving a shipment identify and sign for all apparent exceptions in the presence of the delivery driver. Do not sign for a shipment on a “subject-to-inspection or recount” basis. When a shipment changes hands, apparent exceptions should be explicitly noted by the receiver.

2. If there is a problem noted upon receipt of a shipment, immediately call your local Hercules office and request a formal carrier inspection. An inspection is required to give an authorized carrier representative the opportunity to confirm exceptions, and to determine probable cause. Formal requests for inspection must be made no later than 15 days after date of delivery. All packaging must be retained for examination.

3. Once the inspection is made, take steps to minimize the loss. Undamaged goods should be taken into stock. The consignee should take steps to salvage or repair damaged merchandise. Consignees should be cognizant of the fact that it is their legal duty to minimize a loss no mater who or what caused the damage. If salvage is refused or turned over to the carrier, the claimant may only be entitled to the salvage proceeds as realized by the carrier if, after investigation, it is determined that there is no carrier liability.

4. Failure to note exceptions at time of delivery or to request an inspection within the prescribed time limit may result in the denial of any claim.

5. After determining the value of your loss, prepare your claim and submit it directly to your local Hercules office. Claims should be presented promptly to commence investigation while facts are reasonably “fresh” and to prevent time bar declinations. Under statutory conditions of carriage, written notice of pending claims must be provided within 60 days of delivery.

6. Claimants causing delays in providing proper documentation are subject to a 25% reduction off the original claim submission.

The following basic documentation should be submitted with all claims:

A. Your “itemized claim invoice” specifying nature of claim (pilferage, damage, shortage), amount claimed (show salvage allowance if applicable), and details of shipment. This statement may be given on your own letterhead or invoices.

B. A copy of the “original sales invoice” for the entire shipment involved, and/or “certified original copy”, certification reading: “We hereby certify that the values outlined on this invoice represent the value of the goods”.

C. If a claim is for repair costs, enclose copies of “jobber invoices”, outlining labour hours and charges, along with copies of “replacement parts invoices”.

D. A copy of the delivering carrier’s “inspection report” if the claim is for damage or pilferage. A copy is left with the consignee after completion of inspection.

E. A copy of the “paid freight bill” for the shipment. No claim will be processed until freight charges are paid in full.

F. A copy of the invoice from your customs broker showing the breakdown of the duty and taxes paid pertaining to the shipment you are claiming for.

Claims are assertions of liability from one party to another and each claim is subject to investigation and adjustment on its individual merit. Shipments move under separate contracts of carriage, therefore claims should also be submitted individually for each shipment involved to facilitate carrier investigation and processing.

It is hoped that this brief summary is of help to you. We are at your service. Should you have any questions, please do not hesitate to contact our claims department.