Example Data Table
| Peril | Claim | Fees | Duty | Salvage | Limit | Deductible | Net Payout |
|---|---|---|---|---|---|---|---|
| General | 25,000 | 750 | 0 | 1,000 | 100,000 | Flat 1,000 | 23,750 |
| Theft | 18,000 | 1,200 | 0 | 0 | 15,000 | Override 2,500 | 12,500 |
| Water | 40,000 | 2,000 | 1,500 | 5,000 | 35,000 | 1% of value | 33,000 |
Formula Used
- Gross Loss = Claim + Fees + Custom + Duty − Salvage.
- Adjusted Loss = (Claim − Depreciation) + Fees + Custom + Duty − Salvage.
- Coinsurance Factor = min(1, Insured ÷ (Value × Coinsurance %)).
- Payable Before Limit = Adjusted Loss × Coinsurance Factor.
- Payable After Limit = min(Payable Before Limit, Coverage Limit).
- Deductible uses standard or peril override rules.
- Waiver: if Payable After Limit ≥ Waiver Threshold, Deductible = 0.
- Buyback: Deductible = Deductible × (1 − Buyback %).
- Net Payout = max(0, Payable After Limit − Deductible).
- Insurer Share = Net Payout × Participation %.
How to Use This Calculator
- Select the peril type for correct deductible behavior.
- Enter cargo value and the direct claim amount.
- Add fees, duty, and any salvage recovery credit.
- Use custom expense lines for special claim costs.
- Enable coinsurance and limits only if your policy has them.
- Set deductible type, then add waiver or buyback if needed.
- Use theft override only for theft and pilferage claims.
- Press Calculate to view results and export reports.
Deductible estimation for cargo claim decisions
Cargo claims often combine direct damage, handling charges, storage, surveys, and recoveries that change the payable base. This calculator consolidates those components into a single adjusted loss, then applies coinsurance, limits, and deductible rules to estimate net payout and insurer share. By separating gross loss from adjusted loss, teams can see how depreciation assumptions or recoveries reshape the claim before policy terms are applied.
Key loss inputs that materially move outcomes
Accurate values for salvage recovery and claim expenses are essential because they can offset or inflate the payable base. Survey and adjuster fees typically scale with complexity, while storage and expedited freight rise when delivery timelines matter. Duty and documentation costs can be included when recoverable under terms. Custom expense lines support special items such as repacking, guarding, or laboratory testing.
Policy mechanics: coinsurance, limits, and participation share
Coinsurance reduces payment when insured value is below the required fraction of cargo value, producing a factor capped at one. Coverage limits cap payable amounts before the deductible is applied, which can be decisive in high-severity events. Participation percentage models quota share or layered structures by translating net payout into an insurer share amount for reporting and planning.
Deductible design: flat, percentage, waiver, buyback, and overrides
Deductibles can be flat amounts, percentages of payable loss, or percentages of insured value, then constrained by minimums and maximums. A waiver option sets deductible to zero when payable after limit meets a chosen threshold, while a buyback reduces the deductible by a selected percentage. Theft overrides allow peril-specific deductible rules when theft and pilferage terms differ.
Using scenarios and exports for operational control
The scenario curve varies the claim amount to show how net payout and insurer share respond across severities under consistent terms. Exported CSV supports reconciliation and audit trails, while the PDF summary standardizes internal approvals. For best results, document assumptions on depreciation, recoveries, and eligibility of duties, then rerun with alternate terms to quantify sensitivity.
FAQs
1) What does “adjusted loss” represent in this tool?
Adjusted loss is the claim amount after optional depreciation, plus selected expenses and duty, minus salvage recovery. It is the loss value used for coinsurance, limits, and deductible calculations.
2) When should I enable coinsurance?
Enable it only when your policy includes a coinsurance requirement. If insured value is below the required fraction of cargo value, the calculator applies a factor that reduces payable amounts.
3) How does a franchise differ from a deductible?
A franchise can eliminate payout entirely when the loss is below a threshold. A deductible reduces the payable amount by a defined value after limits and other coverage adjustments.
4) What is a deductible waiver in practical terms?
A waiver sets the deductible to zero when payable after the limit reaches a specified threshold. It models provisions where large losses avoid deductibles or apply reduced cost sharing.
5) Why use the theft override section?
Some policies apply different deductible rules for theft and pilferage. When peril is set to theft and override is enabled, the calculator uses the theft-specific deductible settings instead of standard terms.
6) Are taxes in the calculator part of claim settlement?
No. The tax option is for planning and reporting scenarios only. It subtracts a chosen percentage from the insurer share amount to estimate downstream impacts outside the policy payout.