Case Overview

In August 2023, a Metal Company transported several thousand tons of granular nickel iron by sea voyage to Sulawesi, Indonesia. During the voyage the ship carrying the nickel iron was found its main deck was flooded. The captain ran the ship aground to beach it before the ship was sunk and resulted in cargo damage. The metal company claimed the loss, in total USD 1,468,947.58 to its insurer. Frad was assigned by the insurer to investigate the case and conduct a survey on-site.

Process

1. Frad risk management engineer went to the accident location in Indonesia to conduct survey on-site 3 times. Meanwhile, the engineer also met up with the concerned parties of the subject case many times to discuss the case. Over a period of 10 months, the engineer tracked down 2 salvage operations and 2 unstuffing processes and analyzed cargo sampling with a professional perspective.

2. Technical methods were used to analyze the nature and extent of the loss.

3. Estimate the nature and extent of the loss. Analyze the origin of the accident.

4. Summed up the findings to a report, which concluded that the main origin of the accident was due to the ship being loaded close to its maximum limit. The shipowner should be responsible for all loss, damage, and costs in this case. Frad also assisted the insurer to verify the compensation amount with the insured.

Result

The insurer compensated the metal company USD 850,508.09 and sought recourse from the shipowner. In handling the subject case, Frad utilized its professional skill and global inspection service network to survey, investigate and trace the origin of the case. These efforts help the insurer to clarify the origin of the case and cut down a significant amount of compensation.

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