|
As discussed earlier in Chapter 1, a Salvage Manager has broadly got
two roles to play, one as a ‘Salvor’ and the other as a ‘Salvage Value
Optimizer’.
As a salvage value optimizer, a salvage manager sells salvage at the
fair market value by creating competition in the market through
various online and offline techniques. However, before that she needs
to make sure that the first step of acting as a salvor has been
accomplished perfectly. Infact, selling the salvage is the easier
part. The scope of a salvage manager goes beyond just selling salvage.
Proper inventory and subsequent valuation of salvage is the utmost
important part as witnessed in Case Study II in Chapter 7. Although
the amount of money saved due to the efforts put in as a salvor would
not show as a direct benefit through the salvage sale proceeds but
that should not undermine the benefits of acting as a salvor and
should also not deter a salvage manager from concentrating heavily on
the salvor activity.
As salvage manager I have witnessed various cases where the subject
matter of insurance, especially in marine cases, is left in the same
damaged condition (be it affected by water, smoke or any other peril)
in which the consignee received it. Over a period of say minimum 7 to
10 days (an average time an adjuster takes to settle claim), the
affected item actually becomes damaged and its market value starts
deteriorating day by day. In one instance, a consignment of imported
water affected CRGO sheets got not only rusted but also pitted due to
the rust as the same was left packed in wet condition in wooden boxes
for more than 2 months without even caring about opening the boxes and
let the sheets get dried and save them from rusting and subsequent
pitting. This carelessness, though did not reflect anywhere, but cost
Insurers handsomely. A salvor would not let that happen. It’s his
prime duty to apply mind on salvaging rather than only collecting and
verifying various records and documents in the process of which the
salvage gets ignored to a great extent.
For an adjuster, it’s always better to involve a salvage manager at an
early stage after loss. The manager can point out the best way to
handle the salvaged material. She can point out the potential problems
that the adjuster may face at later stages. It may be noted here that
all the shortcomings at the initial stages though are not reflected
anywhere, salvage proceeds being the only judgment criteria, but it is
here that the Insurers can start saving money by paying attention. It
is very easy to forego one or two steps of segregation or inventory
and let the Insured do it for us and later tallying with the list so
prepared by Insured, but, with due respect, it is to be borne in mind
that Insured is a businessman and a claim is the perfect occasion for
her to get rid of various obsolete items, damaged items, and sales
returns— at full value!
An adjuster is a very busy person. It cannot be expected from her that
she would first be handling the salvage with intent to get a good
value and then perspire to get the same sold in the market at an
optimum value. A salvor, on the other hand, after having gone through
various dedicated activities of salvage management, gives her very
best and applies all her experience, or appoints some expert for that
matter, during the salvaging process.
Conclusion:
There is no point further skirting the issue, |
