Importance Of Signed BOL For Insurance Claim In Auto Transport
Ever wondered why car transport companies ask you to sign a bill of landing before commencing the shipping? There are many reasons for this, and we will discuss them below, but one of the most important one is to ensure your goods are identified in case of an accident. The BOL can be used to find out whether an insurance claim is applicable or not. Keep reading to know more:
What’s the Use of BOL?
Before we move towards the discussion of what role it plays in the case of an insurance claim, let’s establish what it does. Here are a few important things that the bill of landing is used for.
• Works as a Receipt: Shipment process cannot start without a bill of landing. It is a must-to-have document for the transport of goods from one point to another. BOL is a legally binding document serving as proof of ownership for the goods being transported.
• Title to Goods: Once the cargo arrives at the destination, it needs a bill of landing to be the title to the goods. The consignee (receiver) listed on the BOL has to be at the destination point to get the goods released.
• Ensures Payment: The shipper can hold the original BOL in case they do not receive payment because of the default of the consignee.
It’s the Central Piece of the Puzzle:
When an accident happens during transit, there will be many people making claims from left and right. How would the car shipping company know which one is making the right claims? What the conditions of their shipment were and what was it that they were shipping? And are they even the real owner of the cargo destroyed in the accident? How will they prove their ownership? These things are crucial to finding out for car transport service provider.
The company has already lost money because of the accident. They cannot lose anymore because of false claims. A BOL contains specifics of the contract between the shipper and receiver; some main ones are:
• Transportation company details
• Shipper and/or consignee details
• Place of goods loading
• Destination of goods
• Mode of transport (road, air, sea, etc.)
• Shipment terms (the division of risk between sender and receiver)
• Description of the goods (classification, dimensions, weight, etc.)
Because of these things mentioned and signed by both sending and receiving parties, a BOL is concrete evidence to be shown for the insurance claim.
Depending on whose responsibility the goods were in (as per shipping terms) at the time of the accident, it will be decided whether the insurance claim is valid or not.
Go for Digital BOL:
To ensure your BOL is not tempered for avoiding insurance claims, it is imperative you go for the digital BOL. This kind of document is uploaded in the cloud, and all concerned parties, typically the shipper, consignee, and freight forwarder, are given access to it.
So, if anyone makes any changes to the contract after it is signed, the history of edits will be saved in the cloud and viewable by all three parties. Plus, it will also tell who made the changes. This means scamming people to avoid insurance money is out of the question with digital BOL.
Insurance scams happen on a daily basis, and it’s something that you need to be prepared for beforehand.
Therefore, we suggest knowing your rights when dealing with car shipping companies. You should know where and when the insurance policy is applicable to ensure you are fully protected.
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