Conditions for Indemnification. Members can apply for indemnification against a member’s declaration of Bankruptcy (and/or insolvency) and Non-Payment of Freight for any freight related transactions between member firms. Only freight charges for such undertakings as Airfreight, Oceanfreight and Inlandfreight can be included. Losses for duties and taxes or merchandise value are NOT covered and members are reminded to be especially prudent when making decisions for such advances. In truly exceptional circumstances – completely and exclusively at the discretion of the Board members may apply for full or part indemnification against freight losses incurred whereby members were caught in a shipper vs. consignee dispute totally beyond their control and proper due diligence. Any claim must be supported with proper documentation such as B/Ls, Waybills, AWBs, HAWBs and other such documentation as seems appropriate or is so requested by the Board. It is absolutely conditional upon the member firms to having notified the CPN Head Office of any such unsettled amounts in the regularly requested monthly A/R reports for 90+ days receivables. Failure to do consistently will negate any claim. The fund does not recognize interest or other claim related costs. The member receiving compensation from the Fund will assign all further (future) rights of claim to the Fund. The member applying for indemnification is not in default in paying its premiums and / or membership fee.
Appears in 2 contracts
Sources: Trust and Indemnity Agreement, Trust and Indemnity Agreement