After seeking advice from Marlin Blue, an amicable claim was brought against Chinese Insurance Company in order to get compensation for the indemnity paid out by New India, as it was detected the same risk may be covered under two different insurance policies.
It is always tricky handling claims in different countries, however, when it comes to China, the level of difficulty increases significantly as more obstacles are put in the way of an amicable claim. The Marlin Blue global network´s ability to open the right doors and find solutions was crucial in this case.
After the claim was presented, several refusals to compensate were received from Chinese Insurance Company, alleging the insurance policy was clear on what the destination of the transport was and its insurance cover, which is true as the final discharge point was Nhava Sheva Seaport, India.
Nonetheless, it is also true the insurance certificate stated a different destination for the goods, i.e. “warehouse of the importer, transhipment to be covered, if goods are transhipped”. Moreover, an insurance certificate was used in the documentary credit.
Lengthy discussions took place, in Chinese and in English, including some formal requests for settlements and even included seeking the advice of Chinese lawyers in order to bring litigation for the case if no amicable settlement was reached. After all this, a 200.000USD settlement was achieved, which was a great success and a good recovery, given the country where the claim was sought and even the very merits of the claim.
Moreover, it was not easy to get this money out of China, as Chinese authorities are very reluctant to remit money to overseas countries; therefore, some further negotiation was needed in order to finally get this money into the New India bank account. Marlin Blue was instructed by New India to carry on with recovery efforts for our Client.