managing claims in mexico. hijacking not like this
TRANSCRIPT
Managing Claims in Mexico
Hijacking
Not Like This
Possibly Like This
High value shipment of consumer electronics
Armed guards (1 car in front, 1 behind)
2 drivers
No rest stops
GPS Tracking
2-way radio on at all times
Shipment hijacked near origin
Sent surveyor/investigator
Obtained police report, interviews with all parties etc.
Police report vague re interaction between hijackers and drivers/guards, not clear re exact location
Interviews with drivers/guards inconsistent with police report, also vague re location
Hmm…
Surveyor/investigator does some digging, has local contacts
Cargo hijacked 2 km from origin
GPS data requested/received, alas incomplete
Look at map
Highway is 3 km from origin…
More digging…
Armed guards were waiting on the highway
Insuring conditions in effect from the moment the shipment left origin
“The policy is unable to respond to this claim”
* Ensure the insuring conditions have been met. Don’t presume that the local authorities will be on your side. If it looks like it is going to be expensive, obtain the services of an experienced professional with local connections.
** This happens elsewhere.
Corruption
cor·rup·tionkəˈrəpSH(ə)n/nounnoun: corruption; plural noun:
corruptionsdishonest or fraudulent conduct by those
in power, typically involving bribery.
Corruption Perceptions Index
10/175 103/175
Source: Transparency International 2014
GDP Per Capita
$43,935 $9,592(63/186)(15/186)
Source: IMF 2015
Basic Cargo Claim
Appoint surveyor
Request documents and claim statement
Dry goods (clothing), so no worries re preservation of cargo
Set reserve at estimated loss (25%)
Survey report received
Claim statement = 100% of cargo “Gone”
Further investigation reveals that the local authorities managing the accident scene removed the cargo
They have no record of it
Paid as claimed
* Don’t presume that mitigation/salvage is possible, set reserve accordingly.
** I have had insureds in Canada/USA “lose track” of salvaged cargo.
Used Machinery Claim
Through B/L, Ontario to Mexico
3 months after delivery, claim filed
“Extensive damages”, detailed list thereof
Blurry photos of scratches/dents
Much angst, many parties involved
Sales invoice < Insured value
For “Customs Purposes”
Claim statement for $120K
No repair invoice – “paid cash”
This is going to get awkward
Appoint surveyor in Mexico
A month later, no progress
Claimant doing their best to be n/a
Claimant’s lawyer very available, as apparently am I
Surveyor indicates claimant is familiar with the process of filing an insurance claim
Appoint surveyor in Ontario to meet with shipper, determine pre-shipment condition
Send report along with list of damages and blurry photos to engineering firm
Most of the claim = cost of overhauling machine
Send engineering report to claimant’s lawyer
Waited a month, paid $5K
* Sometimes the gold is at the front of the rainbow.
** I have had this happen in the GTA.
Stolen Yacht
Recovered in Mexico 2 weeks later, abandoned, still floating
Sold by local authorities to salvor for $5K
Salvor contacts insurer (via insured)
Appoint surveyor to inspect and negotiate return of yacht (interior stripped)
Make reasonable offer to salvor, accepted
Yaay we’re done!
Oh wait…
Salvor goes silent
Surveyor contacted by another party
Additional payment required
Contact local authorities, but they are n/a
Additional payment amount increases
Paid claim in full to owner of yacht ☺
* Don’t assume that stolen property will be recovered once found. If the person you’re dealing with won’t give you their name, it’s probably not a good sign.
** I handled a similar situation in Michigan.
Another Hijacking
Truck detained in urban area without driver’s consent
Some cargo prematurely delivered to the other truck that pulled up beside our truck
Appoint surveyor, request usual documents and a police report
Survey report received, no police report
Revert to surveyor, politely reiterate request for police report
Surveyor: “You’re new at this, aren’t you?”
Nice…
Paid in full, as claimed.
* Don’t assume there will be a police report for relatively minor hijacking/theft claims.
** Just try to obtain a police report from some parts of Ontario or Quebec…not to mention the places where you don’t even ask for one.
New Machinery
Insured to Calexico, CA
Shipped to Mexicali, Mexico
Claim reported 2 months after delivery
“Extensive damages”
Surveyor appointed
Claimant ducking and weaving
Surveyor retires their file
Appoint another surveyor
Shipper does not want us to contact consignee
Consignee not awfully happy with the concept either
Many emails, conference calls with all parties
Clever surveyor calls contacts in Mexico
Shipment was insured with Mexican Insurer
They paid the claim months ago
Provided that info to the shipper, so they could get their invoice paid
* If it even looks like it’s going to get weird, appoint an experienced professional with local knowledge and connections.
** It is not unknown for claimants to file claims with multiple insurers.
Personal Effects
High net-worth individual with corresponding expectation$
Considerable damage to furniture, but most of it appears repairable
Surveyor declines appointment when they find out where it is
Find restorer 600 km away who is willing to travel
This is not going to work out well….
3 weeks later, restorer sends before and after pics, and his invoice – as quoted
Claimant contacts policy holder to express their appreciation
The broker writes to say thank you
* There are good people in Mexico, just like everywhere else.
Don’t Let This Happen To You