1. Forms
2. IH
3. IH-99-09

What the Form Is

The IH 99 09 Values Shipped Reporting Form is an endorsement used in Inland Marine insurance. Its primary purpose is to modify a Motor Truck Cargo policy—specifically the Motor Truck Cargo Owners Coverage Form (IH 00 71) or the Motor Truck Cargo Legal Liability Coverage Form (IH 00 76)—from a standard, fixed limit basis to a reporting basis. This means that instead of having a predetermined limit of liability for goods in transit throughout the policy period, the insured is required to periodically report the actual values of property they have shipped. These reports can be submitted on a daily, weekly, monthly, quarterly, or annual basis, as agreed upon with the insurer. The premium for the coverage is then typically adjusted based on these reported values.

Classes of Business It Applies To

This endorsement is suitable for businesses whose value of goods in transit fluctuates significantly over time. Using a reporting form allows their coverage limits and premiums to more accurately reflect their actual exposure. Examples include:

• Manufacturers and Distributors: Companies that ship varying quantities or values of their own products. For instance, a seasonal goods manufacturer might have very high shipment values leading up to their peak season and lower values बाकी.
• Trucking Companies (Common or Contract Carriers): Businesses transporting goods for others where the nature and value of cargo can change with each load. A carrier might transport low-value bulk goods one week and high-value electronics the next.
• Businesses with Irregular Shipping Schedules: Companies that do not have a consistent flow of shipments, making a fixed coverage limit potentially inefficient.

Special Considerations

• Reporting Accuracy and Timeliness: It is crucial for the insured to submit accurate reports of shipped values by the agreed-upon deadlines. Failure to do so can have significant consequences. If reports are late or incorrect, coverage in the event of a loss might be limited to the last reported value or a provisional limit, potentially leading to underinsurance.
• Premium Adjustments: The final premium is determined by the values reported. An initial deposit or provisional premium is often charged, which is then adjusted based on the actual reported exposures.
• Record Keeping: The insured must maintain detailed and accurate records of all shipments to support the values reported. Insurers may have the right to audit these records.
• Impact on Coverage Limits: The limit of liability for any one loss is often tied to the values reported. Understanding how the limit is determined (e.g., based on the last report or an average) is critical.

Key Information for Agents and Underwriters

• Pricing: Premium calculation will involve an agreed-upon rate applied to the reported values. Underwriters will assess the type of goods, shipping radius, loss history, and the insured's reporting reliability to determine the rate and any minimum or deposit premiums.
• Risk Assessment: The primary risk is the fluctuation in values and the reliance on the insured's reporting. Underwriters should evaluate the insured's business operations, financial stability, and administrative capabilities to ensure they can comply with reporting requirements. Maximum potential exposure per shipment and per reporting period should be assessed.
• Coverage Gaps: Agents must clearly explain the implications of non-compliance with reporting provisions to the insured. Emphasize that inaccurate or late reporting can severely limit recovery in case of a loss.
• Underwriting Guidelines: Establish clear guidelines for acceptable reporting intervals based on the insured's business cycle and shipment frequency. Consider the types of commodities being shipped and any specific risks associated with them (e.g., perishability, susceptibility to theft). The endorsement is designed for non-filed inland marine policies, offering flexibility but requiring careful underwriting.