Claim and underwriting rosewood coffin scratch. It was one of the weird kind of cargo that I had to underwrite during my 23 years working experience in the general insurance industry.
My partner of second handed imported car tire from Japan and South Korea Mr. Leong of Singapore called me on Monday, April fool morning to underwrite a shipment of 2 exorbitant coffins.
“Can I have the detail of this shipment? I asked him.
“Please liaise with the producer, Mr. James at Ho Chi Minh City, Vietnam shortly, he is expecting your call urgently, as the shipment is ready.”
“Good morning, Mr. JAMES, I am Jamin, Mr. Leong partner from Singapore. Can I have the detail of this consignment?”
“My client, a business tycoon from Singapore has called to make this customized rosewood coffin with dragon and phoenix carving on both sides for his elderly parent. We use the high-quality craftsmanship for the carving. Indeed a filial son to his parent. It is hand carving by 10 craftsmen for 3 months to complete a coffin. We take total 6 months to finish the whole the assignment. Rosewood must be more than 100 years old to make such exclusive coffin.There is a sparkling of gold dust sprinkle on the carving to give a shiny beam look. Later the coffin would be cremated.
“What other requirement or special clauses for this cargo.?
“The client would not accept any scratch on the outer surface of the carving or any other part of the wooden surface. It means to bring in bad omen or misfortune for the descendants. It is due to this clause, no insurer in Vietnam dare to cover this type of risky adventure. Is it alright with you?”
“Mr. James, it is fine with me, but I need you to follow strictly my instructions before the shipment.”
1. A Switzerland cargo surveyor was needed to inspect the packing before stuffing into the flat rack container.
2. The surveyor had to take a detailed close-up video clip on every inch of the cargo especially the dragon and phoenix carving.
3. A dendrochronologist’s verification report that the age of the rosewood must be more than 100 years based on the ring of the wood.
4. Double layer corrugated box outside and styrofoam on the inside for packing purposes.
5. The coffin must be wrapped with the air tight thick plastic bag to prevent moisturized of the wood.
6. A professional handler must be supervised the stuffing of the container.
7. There must be protective foam stuffing in between the container.
8. A 30% was added to the invoiced valued of S$2 million to determine the sum insured.
I issued the policy with following clauses:-
ICC “A” clause
Constructive total loss if container dropped into the sea
Loading and unloading
Hijacking and Armed robbery especially open sea near the Southern Philippines and Indonesia.
Strike riot and malicious damage.
Warehouse to warehouse clause.
Scratched and dented.
The cargo arrived Singapore sound. The mishap happened during customs inspection. One of the professional handlers had accidently pierced through the double layer hard carton paperboard with his long knife. There was a visible scratch on the dragon head of this exquisite coffin.
I had to file a claim using the earlier video clip done by the pre-shipment surveyor at Vietnam.It was negligent of the freight forwarder carried out their duty without utmost care.
The claim amount was $1.3 million less an excess as stating the marine insurance policy. It was an agreed value policy. Of course, there was a salvage value for this kind of high quality and costly rosewood.
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14 replies to “Claim and underwriting Rosewood Coffin Scratch”
Wow, lots of detail and specialized handling in this case. The coffin is beautiful by the way! As I was reading through this and saw all of the preparation that went into this and the shipment arrives in perfect condition only for it to be damaged in customs! I felt sick to my stomach and I am not even responsible! Great work on your part!
Thank reading my article and giving me a valuable comment. Indeed, underwriting is a tough job.
Interesting story! I never imagined that there can be an insurance for a coffin. I know that it is made out of luxury materials and that there was a long process to build it. Is there any product in the world that isn’t covered by an insurance?
Thank for reading my article and giving me the valuable comment. The sky is the limited, everything can be insured, including virginity. I am not surprised, people insured blue sky and fresh unpollutable air in the future.
Wow that is so amazing, all that had to been taken into account for transport. The coffin sounds so exquisite. Thank you for sharing all that goes into such an estimation for delivery.
Thank for reading my article and giving me a valuable comment. A quality product always has the market, there is a ready buyer.
A lot of detailed information in this article, nicely written, Jamin. I would have personally been too worried to cover that coffin with all of the stipulations. Seems you handled it well!
Thank reading my article and giving me a valuable comment.
Practice making perfect, experience that count too. We have to think outside the box to underwrite such a risky cargo.
Never in my wildest dreams, wouldve thought there would be a day in time where insurance for a coffin was even a thing. But he it is right here in my face. This was an interesting read and I will be sure to share on my social media accounts. I’m sure many will find this information just as interesting as I did.
Thank for reading my article and giving me a valuable comment.
I was too shocked to receive the call from my partner to cover the exquisite rosewood coffin. This is how the rich burn away their money that can feed a few thousand of the poor African children.
I jad no idea there was so much involved in the insurance industry. I guess Im just used to the basic coverage. All things considered I can see that there truly is a need for this type of insurance. This was a very informative article.
thank for reading my article and giving me a valuable comment. Marine insurance had existed for a few thousand of since the ancient civilization of China’s longest river for transportation and the Hanging garden of Babylon.
Wow! I never knew so much went into insurance. This is a great story, with lots of details that really helped to give a glimpse of all that goes on in the world of insurance.
I really enjoyed reading about this!
Thank for reading my article and giving me a valuable comment. The public would not know what behind the closed door of underwriting any of this kind insurance.