Settlement Evaluation

Settlement Evaluation is a critical step in handling claim cases in foreign trade. It refers to the process where, after a buyer files a claim, the seller or its insurance company investigates and evaluates the reasonableness of the claim, allocation of liability, and amount of loss to decide whether to pay and how much to pay. Use scenarios include disputes over non-conforming goods quality, shortage in quantity, transport damage, and delivery delay. Precautions: it must be based on contract terms (such as inspection standards and claim periods), international trade practices (such as Incoterms), and relevant laws; the evaluation should be objective and timely to avoid claim escalation or arbitration caused by delay. Difference from other terms: Settlement Evaluation focuses on the evaluation process, while 'Settlement' refers to the final compensation outcome; 'Claim' is the buyer's request action. Settlement Evaluation is the prerequisite step for deciding whether to accept a claim and directly affects subsequent negotiation or litigation strategy.