{"id":930,"date":"2026-01-19T20:02:42","date_gmt":"2026-01-19T20:02:42","guid":{"rendered":"https:\/\/sailorvikas.com\/?p=930"},"modified":"2026-01-19T20:03:18","modified_gmt":"2026-01-19T20:03:18","slug":"handling-of-claims-and-disputes","status":"publish","type":"post","link":"https:\/\/sailorvikas.com\/index.php\/2026\/01\/19\/handling-of-claims-and-disputes\/","title":{"rendered":"Handling of claims and disputes"},"content":{"rendered":"\n

Handling of claims and disputes<\/h2>\n\n\n\n

CLAIMS & DISPUTES<\/strong>SHIP CLAIMS<\/strong>
Where a member of a P&I club, e.g. a shipowner, makes any claim against his club, the first $5 million will be met by the club\u2019s own resources. In excess of $5 million, and up to $30 million the claim is divided among the member clubs in the International Group Pool (including the club making the claim) with a Pool Limit. For claims in excess of the Pool limit, the International Group arranges an Excess of Loss reinsurance contract in the market; this currently provides cover for $2,000 million ($2 billion) in excess of $30 million in relation to all types of claim except oil pollution, where the limit is $1,000 million ($1 billion).
The rules of most clubs require that a member gives immediate notification of any incident which could result in a claim or liability falling within the scope of the club\u2019s cover. Once a claim or potential claim has been notified, the club takes over the investigation and handling of the claim, often with the help of its correspondents, as well as surveyors and lawyers appointed by the club.
In liaison with the member, the club will handle the claim to its conclusion. 
CARGO CLAIMS<\/strong>Where cargo loss or damage is discovered (usually by the receiver or consignee at the discharge port or destination), a Delivery Note or Consignment Note will be claused with a note of the loss or damage.
The cargo owner will immediately inform his insurer; if the loss or damage is found outside the UK, this is done through the local Insurance Agent .
If the loss or damage value is likely to exceed about \u00a3250, underwriters will normally ask for a Survey Report. This is arranged by Insurance Agent, who can appoint surveyors and pay small claims locally. After the claim is quantified and documented, the underwriter settles the claim through Insurance Agent.
SETTLEMENT OF DISPUTES IN SHIPPING<\/strong>ARBITRATION AND MEDIATION<\/strong>ARBITRATION<\/strong>
May be defined as the resolution of a dispute between contracting parties by one or more arbitrators (Lawyers) appointed by the contracting parties.
The contracting parties in shipping matters (e.g. a shipowner and charterer, a shipper and carrier, or a salvor and owner of salved property) in preference through Courts because of  the following benefits over litigation(through Courts):<\/p>\n\n\n\n