Insurance coverage for customer freight
We offer the following to inform you of our policies on the terms and conditions of the insurance coverage for the freight we transport.
1.1 Coverage
To ensure compliance with the obligation imposed by article 51 of the Railroad Service Regulatory Law, at Ferromex and/or Ferrosur we protect the goods we transport with an insurance policy that covers the losses or damages that may be incurred by these goods during their transportation from origin to destination.
Article 51. The concessionaires on the public railroad freight transportation service are responsible for the losses and damages incurred by the goods or products they transport, from when the freight is received until it is delivered to the consignee, except in the following cases:
I. Defects inherent to the goods or products, or inadequate packing;
II. When the freight, due to its nature, suffers any deterioration or damage, total or partial, provided the delivery time established has been met;
III. When the goods are transported at the written request of the shipper in less-than-ideal vehicles, provided that, due to their nature, the goods should be transported in vehicles with other characteristics, and
IV. When the statements or instructions of the shipper, consignee, or recipient of the goods, or the holder of the bill of lading are false, in terms of the handling of the freight.
In order for Ferromex and/or Ferrosur to be able to answer for any loss or damage incurred by goods transported for their full price, you must declare this value and pay the corresponding insurance cost for these goods, in accordance with article 52 of the Railroad Service Regulatory Law.
The insurance cost for shipments whose declared value is less than US$250,000 (Maximum Coverage Limit) will be 3.0% of the declared value for the shipment.
In the event no value is declared for the merchandise, or having declared this value but the insurance cost is not paid, the indemnity for losses or damages to the freight is limited to 15 times the minimum daily wage in effect in Mexico City per ton or the corresponding proportionate part in the case of shipments of lesser weight.
- Reimbursement of the carriage cost
- Reimbursement of the acquisition or production cost of the merchandise (not the commercial or retail value)
- In the case of importations, payment of customs duties and expenses (except VAT)
- Other costs directly related to the accident, such as loading and unloading maneuvers
Article 52. When the user of the service intends for the concessionaire to answer for any loss or damage their goods may suffer for the total price of these goods, including loss or damage resulting from acts of god or force majeure, the user must declare the corresponding value and, accordingly, cover an additional charge equal to the cost of the respective assurance agreed to with the concessionaire.
When the user of the service does not declare the value of the merchandise and does not cover the additional charge equal to the cost of the assurance agreed to with the concessionaire, the liability will be limited to the equivalent of 15 times the minimum daily wage in effect in Mexico City, per ton or the corresponding proportionate part in the case of shipments of lesser weight.
The insurance premium the user pays (3.0%) on the declared value of the merchandise covers damages or losses to the freight up to US$250,000, or the equivalent in Mexican pesos, per shipment in rolling stock or container covering the following:
1.2. Deductible
In the event the insurance amount has been covered and the value of the merchandise has been declared, and if a claim is submitted for losses or damages to the freight, the customer will cover, without exception and in advance of receiving the corresponding indemnity, a deductible of 10% of the value of the loss, the minimum amount for which will be US$250 or the equivalent in Mexican pesos at the exchange rate published by the Bank of Mexico in the Official Federal Gazette on the date of payment.
In the event the claim is submitted in dollars, the exchange rate will be that published by the Bank of Mexico in the Official Federal Gazette on the date of the event or the date on which the delivery inspection record is drawn up, as applicable and according to that established in the chapter on claims. (Claims may only be submitted in dollars when the declared value for the merchandise is also in dollars).
1.3 Exclusions
The insurance for the freight does not operate in the cases mentioned in article 51 of the Railroad Service Regulatory Law, in addition to those cases where customers transport their goods in open units, when there is a shortage as a result of a military inspection or any act of authority, and also when:
- The statements or instructions of the shipper, holder of the bill of lading, consignee, or recipient of the freight are false.
- The goods are dispatched without packing or with defective or inadequate packing, according to their nature.
- The goods, due to their nature, their transportation, heat, or any other natural cause, are exposed to risk of total or partial loss or damage, through breakage, oxidation, or internal deterioration, etc.
- The shipment contains explosives, flammable or corrosive substances, and other hazardous materials.
- The goods are transported, at the written request of the shipper, in less-than-ideal vehicles, provided that, due to their nature, the goods should be transported in units with other characteristics.
- The goods are transported under the care of a person onboard as arranged by the shipper or consignee.
- To satisfy the provisions set by a tax authority, the unit is required to be opened before reaching its destination.
- The customer receives the merchandise without submitting a claim within 24 hrs after the shipment is placed.
- The consignee receives damaged merchandise and removes this without the authorization of Ferromex and/or Ferrosur.
1.4 Claims procedure for damages to freight
1. Accidents
1.1 In the event freight is damaged as the result of an accident, Ferromex and/or Ferrosur will immediately notify the customer through the National Customer Service Center (CNSC).
1.2 Ferromex and/or Ferrosur Quality Assurance personnel will conduct the inspection of the units involved in the accident to assess the damages to the freight and also the possibilities of recovery, salvage, the maneuvers required, etc. Following the inspection, the customer will be informed of the measures to be taken and their approval will be requested.
1.3 The customer will instruct Ferromex and/or Ferrosur as to the disposal of the merchandise, which Ferromex and/or Ferrosur will carry out immediately.
1.4 When the damage is partial and the rolling stock has continued its journey to its destination, the customer will request a delivery inspection to determine any shortage or damage to the merchandise.
1.5 The customer will submit claim for the damage incurred for which the customer will provide the documentation indicated following. Claims cannot be processed if any of these documents are missing.
- Claim letter from the owner of the goods affected, indicating the amount claimed or the value of the goods damaged (not the commercial or retail value)
- Letter indicating whether the freight traveled insured by the customer, in which case the policy number and insurance carrier must be provided
- Bill of lading - original document
- Commercial invoice that supports the cost of the goods damaged or letter supporting the production cost. In the case of importations, a certified copy of the customs declaration and certified copies of customs invoices must be included
- Original of the carriage invoice clearly identifying the shipment in the units damaged, accompanied by proof of payment, for both the carriage and the respective insurance, the latter only when the value of the merchandise has been declared
- Original of the delivery inspection report, where applicable
- Original of the inspection report, this being the document drafted by the company contracted by Ferromex and/or Ferrosur for this task. Applies only in the case of the transportation of vehicles
- Packing list that details the weight of the merchandise. Applies only in the case of intermodal transportation
1.6 The Risk Management Department will receive the claim from the customer, together with all attachments, to then proceed with its analysis to prepare the calculation or assessment of the loss, which will be presented to the customer for approval.
1.7 Once the customer has approved the figures, the indemnity will be paid according to that established herein, with the signing of the settlement to conclude the process.
2. Losses
2.1 When on receiving a railcar, the customer detects that the seals applied at origin have been altered, changed, or removed, or when the shipment arrives in a unit other than the one in which it was packed, or when the unit arrives at a destination other than that indicated on the corresponding service order, the customer will be entitled to request a delivery inspection within 24 hours of receiving the unit, which will be authorized if the customer has not opened the railcar or railcars.
2.2 The delivery inspection will be conducted jointly by authorized representatives for the customer and for Ferromex and/or Ferrosur drawing a record with the results. If the delivery inspection identifies a shortage or damages to the freight, the customer will be entitled to submit the corresponding claim.
2.3 The customer will be required to provide the documentation indicated following on submitting claim for the loss suffered. Claims cannot be processed if any of these documents are missing.
- Claim letter from the owner of the goods damaged or missing, indicating the amount claimed or the value of the goods (not the commercial or retail value).
- Letter indicating whether the freight traveled insured by the customer, in which case the policy number and insurance carrier must be provided.
- Bill of lading - original document.
- Commercial invoice or letter that supports the production cost to corroborate the value of the goods damaged or missing. In the case of importations, a certified copy of the customs declaration and certified copies of customs invoices must be included.
- Original of the carriage invoice clearly identifying the shipment in the units where shortage is detected, accompanied by proof of payment, for both the carriage and the respective insurance, the latter only when the value of the merchandise has been declared.
- Original of the delivery inspection report.
- Claim letter from the owner of the goods affected, indicating the amount claimed or the value of the goods damaged
- Letter indicating whether the freight traveled insured by the customer, in which case the policy number and insurance carrier must be provided
- Bill of lading - original document
- Commercial invoice that supports the cost of the goods damaged or letter supporting the production cost. In the case of importations, include a certified copy of the customs declaration and certified copies of customs invoices
- Original of the carriage invoice clearly identifying the shipment in the units damaged, accompanied by proof of payment
- Original of the delivery inspection report, where applicable
- Original of the inspection report, the document drafted by the company contracted for this task. Applies only in the case of the transportation of vehicles
- Packing list that details the weight of the merchandise. Applies only in the case of intermodal transportation
- Claim letter from the owner of the missing or damaged goods, indicating the amount claimed or the value of the goods
- Letter indicating whether the freight traveled insured by the customer, in which case the policy number and insurance carrier must be provided
- Bill of lading - original document
- Commercial invoice or letter that supports the production cost to corroborate the cost of the goods missing or damaged. In the case of importations, include a certified copy of the customs declaration and certified copies of customs invoices
- Original of the carriage invoice clearly identifying the shipment in the units where shortages or damages are found and proof of payment
- Original delivery inspection report
2.4 The Risk Management Department will receive the claim from the customer, together with all attachments, to then proceed with its analysis to prepare the calculation or assessment of the loss, which will be presented to the customer for approval.
2.5 Once the customer has approved the figures, the indemnity will be paid according to that established herein, with the signing of the settlement to conclude the process.
For more information or to discuss any of the specifics outlined in this pamphlet, please contact the Risk Management Department at (01 55) 5246-3721 and/or the head of the Risk Management Department at (01 55) 5246-3700 extension 3236.
1.5 Requisites for claims
The requisites that customers must cover in order to submit claims for damages to freight as a result of accidents, shortages, or theft are outlined following.
a) The shipper or the consignee indicated on the documentation is the only person that can submit claim.
b) Based on article 186 of the Railroad Service Regulation, in the event of total or partial loss of freight, the respective claim must be submitted within 180 calendar days of the consignee receiving notice of the loss.
c) The customer must submit the payment receipt for the carriage in order to start the claim process.
d) Ferromex and/or Ferrosur will pay the customer the amount for the damages or shortages within 15 business days of receiving confirmation from the customer of the figure that Ferromex and/or Ferrosur has presented as the Loss Assessment and against the corresponding invoice. The invoice delivered to Ferromex and/or Ferrosur for indemnity will not include itemized VAT in accordance with article 1 of the Value Added Tax Law.
e) In the case of damages or theft of freight on a comprehensive international waybill, Ferromex and/or Ferrosur will answer for incidents occurring on its lines per the terms outlined herein and according to that stipulated by Mexican federal legislation.
f) Ferromex and/or Ferrosur will adhere to Mexican federal legislation to resolve any dispute or complaint involving shipments with origin or destination in Mexico.
1.6 Claims procedure for damages to freight as a result of accidents
1. In the event freight is damaged as the result of an accident, Ferromex and/or Ferrosur will immediately notify the customer through the National Customer Service Center (CNSC).
2. Ferromex and/or Ferrosur Quality Assurance personnel conducts the inspection of the units involved in the accident to assess the damages to the freight and also the possibilities of recovery, salvage, the maneuvers required, etc. Following the inspection, the customer is informed of the measures to be taken and their approval is requested.
3. The customer confirms the instructions for the disposal of the merchandise, which Ferromex and/or Ferrosur will carry out immediately.
4. When the damage is partial and the rolling stock has continued its journey to its destination, the customer requests a delivery inspection to determine any shortage or damage to the merchandise.
5. The customer submits claim for the damage incurred for which the customer will provide the documentation indicated following. Failure to provide any of these documents will delay the claim process.
6. The Risk Management Department receives the claim from the customer, analyzes the documentation, prepares the calculation for the loss assessment and presents this to the customer for approval.
7. Once the figures have been accepted, the indemnity is then paid and the settlement is signed to conclude the process.
1.7 Theft claims
Claims procedure for damages to freight as a result of theft
1. When on receiving a railcar, it is noted that the seals applied at origin have been altered or changed, when the shipment arrives in a unit other than the one in which it was packed, or when the unit arrives at a destination other than that indicated, the customer is entitled to request a delivery inspection within 24 hours of receiving the unit and before opening the railcar.
2. The delivery inspection is conducted jointly by authorized representatives for the customer and for Ferromex and/or Ferrosur drawing a record with the results. If the delivery inspection identifies a shortage or damages to the merchandise, the customer will be entitled to submit the corresponding claim.
3. The customer submits the claim for the loss incurred for which the customer will provide the documentation indicated following. Failure to provide any of these documents will delay the claim process.
4. The Risk Management Department receives the claim from the customer, analyzes the documentation, prepares the calculation for the loss assessment and presents this to the customer for approval.
5. Once the figures have been accepted, the indemnity is then paid and the settlement is signed to conclude the process.