Page 8 - RMAI BULLETIN Oct - Dec 2019

RMAI BULLETIN OCTOBER TO DECEMBER 2019

heavy downpour may cause serious damage to
machine. It is also to be noted that the machineries,
which can be kept in the covered godown, should not
be stored in open/unprotected area to avoid theft and
pilferagetotheconsignment.

Transitdamagetosecondhandmachine
The second hand machine may carry pre-existing
damage. When a machine and/or complete plant are
imported, the damage may occur during dismantling of
the existing plant. The suppliers of the plant do not
provide any guarantee for repairing or replacement of
the damaged machine. In most of the cases, the
suppliers of second hand machine do not undertake The packing, stuffing and sealing into the containers
repairingofthemachine. should be examined. The condition of the containers
shall be examined by way of light test to verify whether
Therefore, if repairing and/or replacement of parts are ornotthecontainersarestructurallysound.
needed, such repairing/ replacement may not be
possible due to non availability of such type of The value for each and every package shall be done by
machine/spares in the market and facilities for the surveyors to arrive at the complete value of the
repairing/replacementofthemachineinIndia/abroad. plant and machinery and to verify as to whether or not
Hence, the client will invariably declare the machine as repairing and/or replacement of parts are possible in
total loss. Moreover, it is also difficult to ascertain the India/abroad.Theloadingandunloadingsupervisionof
actual value of second hand machine and/or complete cargo should be done by the surveyors nominated by
plant if individual package-wise valuation is not done the underwriters depending upon the dimension,
by a chartered engineer. It is to be noted that since weight and value of the cargo. The storage in open at
various intermediaries are involved in transactions, the port and/or any place during transit should not be
actual value of the plant and machinery can not be allowedtoavoidwaterdamage,theftandpilferage.
ascertained.
Conclusion:
Lossprevention: It is fact that the cargo is damaged due to an
The second-hand plant and machinery, prior to its unfortunate incidents during transit which is beyond
packing and dispatch, should be thoroughly examined control of human beings. But in our experience,
by the surveyors of international repute at abroad to majority of losses occur due to negligence of the Client,
ascertain the condition of the machine. The surveyors Carriers and other Agencies involved in transportation
should specify the extent of damage, wear and tear, ofgoods.Hence,itisimportanttoappreciatethatcargo
rusting, corrosion, pitting, oxidation, if any, observed losses can be prevented/minimized, if due caution and
during their inspection. The photographs of the care is taken in an appropriate manner by all concerned
machines should be submitted alongwith the copy of keeping in mind that any loss to the consignment will
thesurveyreport. resultin substantialfinanciallosses.

Ne ver take both hands off the pump. As an entrepreneur, you need to be on

constant lookout for opportunity, and that will involve risk. But you minimize those
risksby keeping one hand onthe pump that is producing for you.

- Kenneth E. Behring

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