Damage/Shortage Policy

Damage/Shortage Reimbursement Policy

1. DriftLoad shall not be liable for any loss, deterioration, or damage arising from the inherent nature, defect, or characteristics of the Products, including but not limited to perishable, hazardous, or poorly packaged Products.
2. DriftLoad shall not be responsible for any damage, delay, or loss of Products due to force majeure events, including but not limited to natural disasters, strikes, acts of war, riots, governmental actions, or any other circumstances beyond DriftLoad's reasonable Control.
3. The Client shall ensure that all Products transported under this Agreement are fully insured. In the event that the Client does not have an existing insurance policy for such Products, it shall be mandatory for the Client to avail of or opt for the insurance policy issued by DriftLoad. The terms and conditions governing such insurance coverage are set forth in Annexure C.
4. In case the material is not insured then DriftLoad shall be liable for any damage or shortage of Products occurring during transportation, subject to a maximum one time liability cap of 20% of the transportation freight value. The Client acknowledges that DriftLoad's liability shall be limited to this amount, and any claims exceeding this limit shall be the sole responsibility of the Client.

ANNEXURE C

INSURANCE POLICY

Terms and Conditions

The terms and Conditions of the Insurance Policy that the Client has to avail under this Agreement are given below:

1. Material Handling and Loading Requirements

   • Photographic evidence of the material after loading and unloading must be captured.
   • Proper stacking and packaging of products is mandatory. Lighter products must be placed above heavier ones. Adequate packing materials, such as thermocol, must be used to minimize movement during transit.
   • The Client must assist the driver in counting materials at both the loading and unloading points to prevent shortages. For containerized shipments, seals or locks must be used to ensure security.
   • Receipt of material counting, signed by the driver at both loading and unloading points, is mandatory for any shortage claims.

2. Coverage for Non-Fragile Items

   • The maximum insurable consignment value is Rs. 50 lakh. If the invoice value exceeds Rs. 50 lakh, only Rs. 50 lakh will be insured.
   • Any damage must be reported within three (3) days of occurrence for an insurance claim to be considered.
   • An excess/file charge of 0.5% of the consignment value shall apply, subject to a minimum of:
     • Rs. 5,000 for losses exceeding Rs. 25,000.
     • Rs. 2,000 for losses up to Rs. 25,000.
   • Claim settlement shall be 90% of the claim amount after deducting the excess.

3. Coverage for Fragile Items

   • The maximum insurable consignment value is Rs. 50,000. If this limit is exceeded, underinsurance provisions shall apply.
   • An excess/file charge of 1% of the consignment value shall apply, subject to a minimum of Rs. 7,500 per transit.
   • Claim settlement shall be 90% of the claim amount after deducting the excess.
   • The policy shall cover losses and/or damages for fragile items, excluding ITC-B perils, namely:
     • Fire
     • Lightning
     • Bridge collapse
     • Overturning of the carrying vehicle
     • Derailment or similar accidents involving railway wagons/vehicles.

4. Preventive Measures for Water Damage

   • All consignments must be covered with tarpaulin to prevent water ingress.
   • If feasible, the vehicle floor should also be covered with tarpaulin to allow for material recovery in case of spillage.
   • Containers with ceiling holes must not be used, as they may cause water ingress.

5. Exclusions from Insurance Coverage

   • The insurance policy does not cover losses arising from the following unless directly caused by ITC-B perils:
     • Rusting, oxidation, discoloration, scratching, bruising, chipping, denting, or paint/polish damage.
     • Mold, mildew, fungus infestation, moisture, or deterioration.
   • The following items shall not be covered, unless the loss is caused by ITC-B perils:
     • Used or second-hand goods
     • Returned goods
     • Scrap materials
     • Household items
   • Loss, damage, or expenses caused by insufficient or unsuitable packing or preparation shall not be eligible for an insurance claim.
   • Insurance claims cannot be made for damages occurring during loading at the consignor's location or unloading at the consignee's location.
   • Overload/Overheight/Extra Length: If a vehicle is overloaded, overheight, or carrying extra-length material, the claim will not be considered.
   • Kaanta Difference: Shortage above 0.5% of the total weight is claimable; anything below this value will be considered a kaanta difference and is not covered.

6. Claim Restrictions & Geographical Limitations

   • If a damaged product requires repairs at the consignor's location before being sent to the consignee, only the repair charges shall be claimable.
   • GST, transportation, food, and accommodation charges shall not be claimable.
   • Claims will be assessed based on the material tax invoice issued for the same consignment.
   • If the material is insured through an external insurer, DriftLoad shall not be liable to provide any documentation for the claim process.
   • Transit insurance shall not apply to shipments transported to countries outside India, including but not limited to Bangladesh and Nepal.

7. Mandatory Documents Required for the Claim Process

   The following documents are required for claim processing:

   1. Material Tax Invoice
   2. Loading/Unloading Photos
   3. Damage Photos/Videos
   4. Debit Note from the consignee in the claimant's name
   5. Claim Bill with salvage/repair cost details
   6. OEM Report / Repair Estimate Bill
   7. FIR in case of shortages exceeding INR 50,000