PRFC & the $7M Phone Heist Fiasco
High value shipments are particularly prone to theft, more so when they are low in volume and relatively easy to move. A high-value FCL shipment of cell phones arrived at the consignee’s warehouse. Whilst all appeared to be in order with the container and its seal intact, upon opening, it was discovered that at some point the cargo had been replaced with bottled water in order to replicate the weight of the shipment and the container resealed. The cargo had been duly insured on a warehouse-to-warehouse basis, but unfortunately after investigating the matter the two insurers involved strenuously attempted to deny the claim on a number of points.
When the consignee was planning shipment for these types of goods, they had come to us as their Brokers to discuss their potential exposures. Together, we were able to identify, analyse and put robust recording and control measures in place for all possible loss scenarios, long before the date of their first shipment of goods.
Several initiatives were then deployed, from the ordering process for the cargo to its eventual offloading and storage at the client’s facility.
Due to the risk management programme our client had agreed to deploy with PRFC, and along with our deep understanding of Marine Insurance law and the support of our international partners, each of the justifications for denial of the claim that had been presented by the two Insurers were able to be successfully contested.
The client’s claim and all associated costs were paid in full, along with a generous interest on the total value of the loss to offset the delays in settlement
Furthermore, the Risk Management techniques and targeted coverage used in the process had generated specific evidence relating to key aspects of where the loss occurred, and this proved of immense value to the authorities, who were then able to pinpoint the persons involved in the theft, who were subsequently tried and convicted.
Knowing where the exposures lie, what can be done to mitigate the frequency and severity of losses PLUS having the tools to deploy an effective Risk Management programme is the key to building your business resilience – this is what PRFC is all about.