moosemeadows

Hello all! We've had issues with our shippers, the latest of which is them telling us that our shipped possessions are not currently insured in temporary storage despite us indicating that we wanted insurance to cover us for storage at destination when we completed our booking form, and paying the invoice.

The marine insurance policy that we completed states that "cover includes temporary storage incidental to transit of not more than 60 days prior to shipment and 60 days following the arrival of the conveying vessel at destination."

Our ship arrived into port at the start of the month, our container cleared customs on 6th September and now our possessions are in storage with the approved Canadian partner of our shipping company, scheduled for delivery to our new home on 3rd October. We are certainly within the 60 days that the policy - to my interpretation - appears to cover.

The branch manager at the shipping company is saying that my interpretation is wrong and that the items aren't insured at the moment because (a) our filling out the form to request insurance during this time period was apparently meaningless and doesn't equate to the 'written request' that they require for insuring goods in temporary storage and (b) that 'incidental storage' only refers to the period of time while items are awaiting customs clearance. But the insurance policy doesn't go into that level of detail. The shipping company have performed very badly so far and the manager I'm talking to about this matter does not inspire any confidence.

I want to make sure our possessions are insured but I don't want to pay the extra money the shipping company is asking for, if we are already covered as I feel we are.

Any insights welcomed :-)

Hurlabrick

It will of course depend on the precise wording of the policy etc. I had a quick Google and found an insurance policy offered by White and Company (a reputable UK mover who we are considering using ourselves when our time comes).


The policy is underwritten by AXA as 'Flexicover'. The condition they have that seems to cover what you are talking about is:


STORAGE
Storage incidental to transit is covered up to a maximumperiod of 60 days. However, if youreffects are to be stored at a rental you should arrange for the cover to beextended. Additional charges will bepayable.


The key words here are of course 'incidental to transit'. But the way this particular clause is worded says to me that once it has been cleared by customs, unless you arrange for it to be delivered immediately (i.e. you put it into storage), then you are not covered unless you extend the coverage.


Now I don't know what your insurance policy is nor what the wording is, but what your shipper said seems to me to have a ring of truth about it - I am NOT a marine insurance expert, but I have worked in personal insurance for 40-odd years.

moosemeadows

Thank you Hurlabrick, that is helpful. I had come across the Whites policy wording online too. The key difference with our policy is that the clarifying sentence regarding storage at a rental, is not present, so to my mind it remains ambiguous and open to interpretation. The shipper has now given me the contact details of their claims department so I will also ask the question of them. In the meantime I have paid the extra amount they've said is due, to ensure we're definitely covered.

It seemed logical in some ways that a shipping company would include a small period of time in storage in its cover, because otherwise if a customer makes a claim against the policy for an item that arrives damaged and it can't be determined whether damage occurred in transit or storage incidental to transit, I wonder what they would do?

Hurlabrick

I think as a point of principle, they are trying to say that yes, you are covered for as long as we have it 'in transit', but that if you, as the customer say after customs clearance, 'no - stop the clock, leave the shipping container parked where it is, as we are not ready to receive it' then that is a deliberate storage decision on your part and therefore outwith any 'in transit' clause.

It make sense to me. You really don't want to get into a disputed claims situation which would at best drag on for months or years I would suggest.

Would have been nice if they had made that clear up front, but hey!

Siouxie

+1

As I read it, say for instance there was a delay between your container coming off the ship and it being cleared for customs - stored in a bonded warehouse - before onward transit to you. This would be beyond your control, due to the transit requirements for customs clearance. You would be covered because the goods were still in transit until they arrived at your house.

As it is, I'm presuming your goods have cleared customs and were ready to be delivered to you. You have now chosen not to have them delivered, but to put them in storage temporarily. This is not a transit situation, therefore you wouldn't be covered unless you had taken out additional insurance for (post transit) storage.

I know it doesn't seem right, but that does appear to be how it works.

Are you storing it with your shipping agents? Is it still in a container, or has it been unloaded and stored within a controlled environment? Did you have sole use of a container or was it a shared situation? (Consolidated)