GENERAL HYUNDAI MERCHANT MARINE AMERICA, INC. CLAIMS GUIDELINE (CUSTOMER)

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1 GENERAL This guideline is intended to assist Hyundai s customers to properly notify Hyundai of damaged/lost cargo issues, as well to explain the procedure for resolving related claims. Claims and related issues should be specifically described on a claim form, along with other requested information and submitted by fax/mail to: Hyundai Merchant Marine America, Inc. Claims Department 222 W. Las Colinas Blvd., Suite 700 Irving, TX 75039, USA Tel. No.: ~ 1153 Fax No.: claims@hmma.com (Agent Contact Details will be added) Customers can also find the location of Hyundai s local offices at Hyundai s professional Claims Staff Members have received extensive training to effectively assist Hyundai s customers resolve their concerns which may include monetary loss from damage and/or loss of cargo which may have incurred during the transportation of such cargo under Hyundai s care and custody. If customers have questions or problems related to Hyundai s services, such customers may contact one of Hyundai s local offices or agents, Customer Service Centers by region and/or Claims Department. Direct contact with the Claims Department is highly recommended. As a general rule, Hyundai s or the carrier s liability is subject to the standard wording of the terms and conditions of the Bill(s) of Lading issued by the carrier. In this regard, it is recommended that the customers keep a current copy of the front and reverse side of Hyundai s Bill of Lading for their perusal. The clauses on the reverse side can be provided to the customers in longer format at the customer s request.

2 PRELIMINARY CLAIMS (NOTIFICATION) A. TIMING OF PRELIMINARY CLAIM In case of damage to and/or loss of cargo, preliminary claims MUST be filed, in written form, within three (3) days of the date of delivery. Failure to provide such notice is not fatal to a claim, but it does create a presumption that the goods were delivered in good order and condition. By failing to give timely notice, a claimant must then overcome the burden by demonstrating that the damage occurred before delivery. The reasons for the three day time frame are: (a) The carrier must be given a timely opportunity to investigate the circumstances of the damage or loss; and (b) To avoid fraudulent claims. B. MANNER OF PRELIMINARY CLAIM There is no fixed Preliminary Claim Form, however notification MUST be presented with Hyundai s bill of lading number, container number (if applicable), name of the vessel and voyage number which carried the shipment, description of the cargo involved and a brief mention of the nature of damage to and/or loss of the cargo. C. THESE ARE RECOMMENDED: If Physical Damage (Broken/Dent/Bent, etc.) Then When the shipment is loaded, counted and/or weighed by the shipper, the cargo shall be properly blocked and braced to avoid possible damage to cargo during transportation at Sea and subsequent inland transportation. Any damage to the shipment due to improper blocking and bracing is beyond the carrier s liability. In the event that the shipment appears damaged along with the visible container damage, immediately notify Hyundai Claims. Wet Damage Sea transportation may encompass a relatively long journey in which different weather conditions can be experienced. Such differing weather conditions may cause condensation and other damage to cargo. As with other physical damage, proper blocking and bracing is important to preventing the cargo from being damaged due to condensation. Any damage to shipment due to condensation from improper blocking and bracing is beyond the carrier s liability.

3 In the event that water damage is found, it is important to discover how water entered and how much of the shipment has been affected. Notify Hyundai immediately when there is a container defect (hole or damage). No Seal or Different Seal on the Container If the container arrives with a different seal or no seal, the customer should take a picture of that new seal, and keep it until such time as we may ask for it. Open the doors of the container and take another picture of the cargo as you see it. Be sure to record an accurate unloading tally. Notify Hyundai claims right away. D. Temperature Controlled Cargo In the event that the cargo is transported with the temperature controlled unit ( reefer container) and damage (deteriorated, frozen and/or defrosted) is found, notify Hyundai immediately. Do not return the container until you have notified Hyundai of the situation. A surveyor will be assigned immediately to jointly inspect the cargo. E. Assignment of Surveyors or Independent Inspectors 1) If the shipment is covered by the cargo underwriter, then the cargo underwriter s surveyor will be assigned for affected customers and cargo underwriter(s). Immediate notification to Hyundai as well as cargo underwriter(s) is recommended. 2) Hyundai, at its option, may or may not arrange for surveyor(s) to inspect the cargo, depending on the type or amount of loss, and Hyundai s position will be conveyed to the customer along with follow-up guidance. 3) The surveyors or independent inspectors assigned by Hyundai will inspect the cargo on an unbiased basis. However, it is recommended that customers also arrange their own surveyor if the estimated loss is greater than $10,000. 4) Hyundai s survey report will be used for internal information/usage only, and accordingly, the report may not be released to customers or claimants until the claim is formalized.

4 FORMAL CLAIMS A. TIMING OF FORMAL CLAIMS 1) Claims/Suits MUST be filed within one (1) year after the delivery of the cargo or one year after the date when the cargo should have been delivered. 2) At the request of claimant, extensions of the one-year timeframe in increments of 60 to 90 days may be agreed between the parties. 3) To avoid claims becoming time-barred, claimants MUST continue to extend the time limitation up to and including date of settlement. 4) If third party liability is involved, the deadline for filing of claims may be subject to the third party s policy and rules. In this regard, it is recommended to bring formal claims within three (3) months after cargo delivery. B. MANNER OF FORMAL CLAIMS 1) A formal claim must have following document: an itemized claim statement (explaining the transportation details as well as the claimed amount) a copy of Hyundai s B/L along with House Bill(s) of Lading (if issued) a copy of Shipper s Commercial Invoice from origin a copy of Packing List a copy of Delivery Receipt of Proof of Delivery a copy of Loading and Unloading Tallies Survey Report, if done Written Description of the damages and any other available documents supporting the loss a copy of Salvage evidence, if arranged. 2) The documents may or may not be included based on the characteristic of damage to and/or loss of cargo. However, it is recommended that claimants submit all the required documents during the very early stages of a claim for a swift resolution. 3) A formal claim may be filed in Hyundai s local office, CSR or Claims Dept. by fax or mail. However, it is recommended that claimants forward comprehensive claim documents to the Claims Department directly to avoid confusion or loss of documents. 4) Shortly after claims are received, Hyundai will issue and send letters of acknowledgement to claimants and begin investigating the claim if there has been no preliminary claims or notifications. In the acknowledgement letter, claimants will find Hyundai s reference number for the claim. House Bill(s) of Lading Number or customer s reference (or file) number is just used for Hyundai s records, and claims cannot be traced without this information. Customers can trace the claim with such Hyundai s reference number or Hyundai s B/L or container numbers. 5) Claimants can expect settlement/payment on their claim within 2 months from receipt of fully documented claim.

5 6) In the event a third party is found as the responsible party, customers have the option to file a claim directly against the third party. Otherwise, Hyundai will pursue the claims on behalf of customers. CUSTOMER S RESPONSIBILITIES A. Mitigation of Loss It is the cargo owner s obligation to take all reasonable steps to mitigate any loss. This is the basic obligation of the claimants. In the event that the loss has not been mitigated properly, the claims will be deemed prejudiced. One example for failure of loss mitigation is the customers failure to promptly separate the water damaged goods from sound cargo. In this case, damage to sound cargo would not be covered. Loss mitigation includes salvage. Claimants are required to show, with documentary evidence, how reasonably and efficiently loss mitigation has minimized total damage. If the cargo is dumped or destroyed, the reasons for these actions are also required. B. Time for claim / Suit All suits for freight loss or damage must filed within one year from the date of delivery, or if the freight was not delivered, the date delivery should have occurred, unless a written request for extension has been received and granted by Hyundai prior to expiration of the one year statute of limitation. INSURANCE If claimant s shipment is insured, claimant is encouraged to file a claim with the underwriter. The underwriter may wish to subrogate such claims against Hyundai after settling the matter with claimant. This is important as claimant may not recover its loss from the carriers which may be exempt from liability depending on the cause/nature of damage/loss. The carrier may also have the right to limit its liability in accordance with its Bill(s) of Lading.