Loss Adjustment

Loss Adjustment is a professional term in insurance and foreign trade transportation. It refers to the process whereby, after an insured loss occurs within the scope of coverage, the insurer or its appointed adjuster investigates, verifies, and calculates the cause, extent, amount of loss, and liability attribution to determine the final claim payment. It is mainly used in marine, air, and land cargo insurance claims, as well as general average adjustment. Notes: Adjustment is usually carried out by a professional adjuster; the insured must report the loss promptly and provide complete documents (such as policy, bill of lading, invoice, survey report). The adjustment result directly determines the indemnity, but it differs from 'loss assessment' (which only determines the amount of loss) because loss adjustment also involves liability allocation and deductible calculation. It differs from 'claims settlement' in that adjustment is the core pre-settlement technical step, while claims settlement covers the entire process from reporting to payment. In foreign trade contracts, if CIF or CIP terms are agreed, the seller must insure and cooperate with the adjustment; if goods are damaged, the buyer should reserve the right to claim against the carrier and pay attention to the time limit for adjustment.