BIMCO | What is the difference between a DRV and the Insurance case?

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Before you keep reading, make sure...

Please check if the leasing deal you are working on is under BIMCO or our updated Standard Container Leasing Agreement. From the 21st of September, 2023, 00:00 CEST - All leasing transactions that are accepted from that point onwards will be governed by the new terms.

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What is the difference between the BIMCO DRV case and the Insurance case?

In the unfortunate event that the container cannot be returned to the Supplier or that the container is damaged beyond repair, there is a clear procedure for resolution of such cases.

However, from the point of the Supplier and the User it may seem confusing. In this article, you can see the difference between the DRV cases and the Insurance cases, which will help you understand how you should act in the event of the loss of the container. 

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What is a DRV case? 

The DRV Resolution Process is the process, which is aimed to help the Suppliers to secure and to avoid financial losses in case of container loss.

In an unfortunate situation when the leased container returns in a beyond-repair condition or the container cannot be returned, the Supplier is fully covered by the BIMCO Agreement. As per the BIMCO Multiparty Agreement, the User is fully responsible for the loss of the container. All the Supplier has to do is reach out to the xChange team.

It is important to understand that once a DRV invoice has been issued, the user is liable to pay this balance immediately. The DRV invoice payment is due from the date of issue, regardless of any insurance case.

Both the DRV and Insurance cases are completely separate. A user should also note that Per Diems if applicable, will continue to be charged until the DRV invoice balance is paid in full, therefore it is in the user's interest to finalize this payment as soon as possible. 

Please, find the dedicated article about DRV Settlement with a full explanation here.

 

What is the Insurance case?

If the User has purchased an Insurance plan on the platform, then in the event of a DRV case the User can apply for an Insurance Refund for the value of the lost container.

Please, find the dedicated article about opening an Insurance case here.

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