Claim case sharing
What is “Important” Clause?
"Important" Clause is also known as "Red Line" Clause as it was printed in red in the policy in the past. As its name suggests, it is very important and is printed on every marine cargo policy to provide guidelines to the insured on the procedure to be adopted in the event of loss or damage.
Apart from the guidelines, the "Important" Clause also states the liability of carriers or other third parties and requires the insured has to ensure that all rights against carriers or other third parties are properly preserved and exercised. For example, the insured is required to claim immediately on carriers for any missing packages, or not to give clean receipts where goods are in doubtful condition.
In reality, many insureds overlook the "Important" Clause. Failure to comply with the instructions stated in the "Important" Clause may prejudice any claim under the marine cargo policy. If the insured follows the guidelines stated in the clause, not only can it streamline the claims procedures, but also protect the insured's interest to claim payment from insurance company provided the claim is eligible under cargo policy coverage.