Containers can get damaged on any step of the logistical process and they get damaged all the time during their journeys. It is a part of our business. However, settling a repair claim can often be quite a tiresome and time-consuming process.
To simplify and speed up this process at xChange we developed a product that helps you deal with reclaiming your damage costs in a couple of clicks.
The following procedure will help you to sort out your claim in an efficient and speedy manner while adding transparency to the process. For detailed info on repair claims please visit the BIMCO multiparty agreement
- Opening Damage Claims
In order to start the damage process, you can either use the "Report Damages" button in the upper left corner of the request page or simply email your estimates of repair and pictures to firstname.lastname@example.org.
If you have Premium Insurance, please, provide depot information with photos and EORs.
- Damage Protection Level
Once initiated the procedure differs based on the agreed protection level. Overall, on xChange, there are 3 main settings to manage repair costs between USER and SUPPLIER
- Damage Protection Plan: In all requests, a damage protection plan (DPP) can be agreed between the SUPPLIER and the USER, which means that the repair costs are to be paid by the SUPPLIER up to the agreed DPP. Repair costs above the DPP are to be paid by the USER.
- Total Loss Insurance: In addition to the DPP, Total Loss insurance can be booked, which will protect your containers against Total Loss and Mysterious Disappearance of containers. Please see here for all insurance Terms and Conditions
- Premium insurance: Premium insurance can be booked in addition to DPP, which significantly simplifies the repair damage experience as xChange takes care of the entire process. It includes the Total Loss Insurance as well as free IICL6 - inspection of the units and protects your containers from all impact damages, refunding the insured amount. Please see here for all insurance Terms and Conditions.
Implementing those setting in a request greatly simplifies the damage claim process and are highly recommended.
- Damage Claim Process
The following process description details what happens when equipment is damaged—depending on what option (A, B) applies.
- Repair claim management process when Total Loss insurance / No insurance is booked
- SUPPLIER starts a repair damage claim in xChange
- As per BIMCO Multiparty Interchange Agreement, the supplier has to share any damage claims within 5 (05) working days (Mo-Fr) after equipment has been reported as returned in xChange. The claim is to be shared with xChange via the report button on the damage request page or via an email to email@example.com/ firstname.lastname@example.org and needs to include request number, container number(s), EOR(s) (Estimate of Repairs) and pictures of the damages.
- The repair estimates must be in English format.
- The estimates should include the following items:
- Container number, Comp code, Loc code, Damage code, Repair code, Length, Width, Quantity, Labour Hours, Labour Cost, Material Cost, Total Cost and Currency.
- Photos should clearly depict the damages and the container number
- If estimates are not sent to xChange within the timeframe stipulated above, the claim will be considered extemporaneous and therefore null and void.
- In case the above-mentioned time-frame cannot be met due to reasons beyond the control of the SUPPLIER, xChange reserves the rights to approve or deny the opening of the damage claim and requires a proper and timely notice.
- xChange checks the claim for completeness and applicability (e.g. no insurance booked) and forwards the claim to the USER
- After the USER receives the damage claim from xChange, it shall within five (05) working days (Mo-Fr) either confirm acceptance of the estimated repair damages or dispute the claimed damages as per BIMCO Multiparty Interchange Agreement.
- If the USER agrees with the repair damages or does not respond to xChange within the number of working days stated above, the USER shall pay for said repairs specified in the estimate. If applicable, any previously agreed DPP shall be subtracted from the estimated repair amount. Any charges/credits will be automatically settled through the xChange wallet.
- In case the USER disagrees with the estimate of repair costs or disagrees that any item should be for the USER’s account, the USER shall detail its objections on a line item level within the period stated above and share it with xChange (email@example.com).
- In case the USER disagrees with a repair estimate(s)
- The damage claim and all supporting documents will be reviewed by xChange.
- An assessment of the case will be issued, and a resolution proposal put forward to all parties involved.
- Within five (05) working days (Mo-Fr) of receiving the above mentioned resolution proposal, USER and SUPPLIER shall revert to xChange (firstname.lastname@example.org) with either confirmation or rejection of the proposal.
- Failure to respond within the above-mentioned time-frame will result in automatic acceptance of the proposal. In case said time-frame cannot be met by either one of the parties for reasons beyond its control, xChange requires a proper and timely notice.
- In case both parties agree with xChange’s resolution proposal, the conclusion will be binding and final and any charges/credits will be automatically settled through the xChange wallet.
- In case one or both parties disagree with xChange’s resolution proposal, a joint survey will be organized by xChange within ten (10) working days (Mo-Fr). An appointed external joint surveyor will inspect the equipment, review the damage claim including all supporting documents and issue a final opinion. In this case the supplier is to make the equipment available for survey at his own cost. In case the supplier does not make the equipment available for survey or releases the equipment before the survey has taken place, the supplier automatically forfeits the right to claim damages and will bear all repair related cost.
- The SUPPLIER and USER agree to be bound by the opinion of the joint surveyor and to equally share the cost of the survey. Any charges/credits will be automatically settled through the xChange wallet.
- Repair claim management process when the xChange Premium Insurance is booked
If the containers are insured against damages, the process for damage claims is reduced considerably. To open an insurance claim, you only need to send repair estimates and photos, and xChange takes care of the rest!
- Please note in case the units are released or repaired before inspection the insurance will be invalidated. In this case the damage cannot be claimed
- USER or SUPPLIER sends the repair estimates, photos and depot contact details (address, phone, e-mail) to xChange:
- The repair estimates must be in English format
- The estimates should include the following items: Comp code, Loc code, Damage code, Repair code, Length, Width, Quantity, Labour Hours, Labour Cost, Material Cost, Total Cost
- Photos should clearly depict the damages and the container number
- xChange forwards the information to the insurance and communicates to the Depot/Owner to make containers available for inspection.
- An insurance-appointed surveyor will contact the depot and schedule the survey
- The supplier is to make the equipment available for survey at his own cost.
- In case the supplier does not make the equipment available for survey or releases the equipment before the survey has taken place, the supplier automatically forfeits the right to claim damages and will bear all repair related cost.
- xChange receives the revised estimates from the surveyor and informs all parties about the results. The results of the survey are final.
- The standard procedure for payment is:
- SUPPLIER pays the total (revised) amount to the depot
- xChange credits the SUPPLIER's wallet with the total (revised) amount minus DPP
- xChange charges the USER’s wallet with the total (revised) amount minus DPP
- xChange credits the USER’s wallet with the insurance refund