How we handle your claim
Assistance by the Club
The level of assistance provided by the Club in handling a claim will depend, among other things, on your own preference. You may get to handle the claim yourself with advice and support from us. However, at your request, if the claim becomes complicated or there are commercial factors which mean that you wish to place the matter “at arms length”, we will take over the claim. This would normally be the case if there is a lawyer or other insurer involved.
Who handles your claim?
TT Club has contracted with Thomas Miller to supply claims handling services. Thomas Miller maintain offices in locations around the world and have supplemented this coverage by subcontracting to specially selected independent offices, known as 'Network Partners'. In this way, we have sought to bring the claims service, into your time zone and, where possible, into your own language. Both Thomas Miller and Network Partners have authority to settle claims on behalf of the Club. There is constant liaison between the claims handlers around the world, which ensures that the Club retains the necessary control of claims handling.
Meetings with the Club
The Club may visit you on a regular basis to discuss a number of claims that have accumulated or specific claims. Alternatively, you are welcome to make a visit to the Club. The Club is also willing to attend and assist in any settlement or recovery negotiation.
What to do when an incident occurs?
You are obliged under your terms of entry to protect your rights of recovery against other parties, including your sub-contractors, who may have caused or contributed to an incident for which you are likely to be held liable, or who may otherwise be liable. In order to preserve these rights of recourse you must assume that it is necessary to:
- notify the recourse party immediately – many contracts require notification within a week or less;
- take steps to avoid the claim becoming time barred.
Time bars
A time bar period is the period within which you can start a legal claim against a third party. This may be shorter than six months in some jurisdictions. To interrupt a time bar you must;
- obtain a written time extension from the party concerned (where legally possible) or;
- issue proceedings within the time bar period. You will need to issue proceedings if, for some reason, you cannot get a time extension. It should be noted that in a few jurisdictions, time extensions are not enforceable. In such a case, the Club will provide technical advice and will issue proceedings on your behalf if necessary. In any event, you should seek assistance from the Club before granting an extension or commencing proceedings.
Time extensions
If you are asked for a time extension, you should refer the matter to the Club before granting it. It may be that the Club will advise against granting the extension. If for some reason you are unable to get hold of the Club in matters of extreme urgency and you have to grant the extension without consulting the Club, this should be done using the following formula: “We hereby grant a time extension in respect of your claim for one month from today. This extension is without prejudice to liability and granted on the basis that it does not put the claim in a better position than it would be if it was sued upon today.”
Lawyers
You should always contact the Club before appointing a lawyer. There is considerable expertise amongst the Club’s staff, as well as the staff of its Network Partners and correspondents, which means that a claim can often be handled without the appointment of an external lawyer. Please note that if you receive a writ you should forward it to the Club without delay – there is still time to inform the Club and allow the Club to advise you before a lawyer has to be instructed to answer the writ.
Withholding freight
Claims are often “enforced” by withholding freight or other amounts due to you. Club cover does not include debt collection. Nevertheless, if freight is withheld because the party withholding it believes he has a claim against you that is covered by the Club, the Club is necessarily involved. If this happens you should tell the Club immediately – before appointing a lawyer to recover the debt – in order to allow the Club to advise on the appointment of a suitable lawyer to deal with the inevitable counter-claim.
Guarantees
The most common guarantees provided by the Club are for General Average or Salvage contributions. This can either be for contributions on equipment insured by the Club, or to release containers of groupage cargo where a forwarder Member may find it difficult to collect in time individual guarantees on all consignments. The Club may require a counterguarantee for the applicable deductible. Please note that Club guarantees cannot be given if premium or declarations are outstanding.
Settlement of claims
You must obtain the Club’s agreement before settling any claim.
Presentation of claim for reimbursement
You must present your claim for reimbursement to the Club within one year of paying a liability claim or, in the case of loss or damage to your insured equipment, within one year from the date of loss. Your request for reimbursement should be accompanied by reasonable evidence of the payment by you of the subject claim.
Credit control
Please note that the Club is unable to reimburse claims if premium is outstanding. If you make a claim on the Club that is held for this reason, the Club will immediately communicate with you or your broker to resolve the matter.
