'Don't use cheapies when
choosing a haulier'
Always act as though uninsured! That's the sage advice to cargo owners from Mike Patterson of marine cargo surveyors and loss adjustors Patterson & Associates.
Patterson says cargo owners seldom give adequate consideration to the various contractual obligations of all parties concerned with the transportation of cargo.
Many cargo owners insure their cargo and expect that in the event of anything going wrong they simply advise their broker, an investigation takes place and the claim is paid by the insurer in due course.
It is not that simple, he warns.
Policies often have restrictive cover in the form of excess, or circumstances under which the loss occurred might not be covered by the scope of policy underwritten. Another factor might be that the loss occurred prior to or subsequent to the insurer coming on risk.
The risk management procedures with which Patterson & Associates are extensively involved on behalf of a wide variety of cargo owners throughout Africa and elsewhere, takes into consideration the obligation that the cargo owner has to his insurer, he says.
We also consider the contractual relationship between all parties associated with the handling of that cargo.
He explains that this awareness substantially assists in securing recourse against the guilty party other than just the insurer, and protects rights of recovery that the insurer has in terms of the policy in the event of liability being conceded.
In simple terms it is not always necessary to simply look at your insurer as the first right of recourse. You should also give consideration to what other steps can be taken to insure recovery against all parties associated with the carriage of the cargo. In any case, it is a fundamental obligation that the cargo owner should act as if uninsured, and protect rights of recovery on his or his insurer's behalf.
Risk management programmes instituted by Patterson & Associates make the cargo owner aware of shortfalls in his operation. This enables him to tighten logistical procedures or contracts to avoid or minimise losses. In the long term this has a positive effect on the cargo owner's business and on the South African economy as a whole.
