From OEM Objections to Resolution: Navigating a Complex Gearbox Breakdown Claim

Project Summary:

Client: A leading cement manufacturer
Type of Claim: Raw Mill Main Gear Box breakdown claims under MBD Policy
Date of Loss: Feb,2022
Claimed Amount: 87.84 lacs
Final Settlement Amount: 33.11 lacs
Items Affected: Raw Mill Main Gear Box

Reason for Deviation:

1. Regarding OEM report, there are some of the points which are contradicted with policy terms & conditions which may lead to complications regarding the inadmissibility of the claim like excess load, worn out condition of the components etc.

2. Documents submission takes much delayed lead to closure of claim.

Brief Details of the Claim

Accidental failure of the coupling ring part no. 490 and this accidental failure had happened due to presence of foreign particles and dirt into the lubricating chamber resulting blockage of lubricating pump port and affect was gearbox running at high speed got overheated, rubbed and eroded which resulted in the failure/ cracking of the coupling ring which has been attributed to all subsequent damages to the assembly.

Unique Features of the Claim

1. Established the proximate cause of loss according to Insurance Parlance.

2. Assessment negotiation.

3. Documents compliance according to availability of Plant Personnel.

4. Client was unable to produce Original Procurement Invoice for which, we failed to calculate the others associating cost like Excise duty, Cess, Tax, Transportation etc to arrive at Value at Risk as on date of loss.

Actions Taken by Salasar to Address the Issues

1. Salasar assisted to prepare the RCA in several times discussion had with Plant Personnel and finally concluded.

2. Obtained Documents after visiting Plant and compile them according to Surveyor's requirement wise.

3. Assisted Surveyor to prepare VAR after giving him others associated costs related to installation of Raw Mill Gear Box at Plant and therafter Surveyor's assessment part was finanlized.

4. After several negotation with Surveyor and shared calcuation for VAR (Value at Risk) Loss assessed amount was 33.11 lacs out of 88 lacs claimed amount.

5. This gear Box was alomost 12 years & Coupling Ring & Coupling Sleeve was unlimited life so Depreciation for these 2 items had charged 25% instead of 50% but others items 50% has been charges and also undersinaurance, salvage & Policy excess had taken into account.

6. Insurance co also raised query that MBD claim was incurred on 11th Feb 2022, however the advance payment was made by you on 23rd July 2021 i.e. 6 months before the date of loss.

WHY? Salasar Services assisted to prepare this answer after taking the details from the client.

Final Conclusion:

Claim Settled after 3 years from the date of Incident after several strong efforts made by Salasar Services.