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Commercialpedia Indian Railways commercial circulars and policies

Expeditious settlement of claims filed by Industry

No.2007/TC-III/1/2 · 2007-06-14
Circularclaims

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Circular numberNo.2007/TC-III/1/2
Date2007-06-14
TypeCommercial Circular
Topicclaims

Summary

Expeditious settlement of claims filed by Industry claims settlement process should be speeded up.

Text of the circular

GOVERNMENT OF INDIA 
MINISTRY OF RAILWAYS 
(Railway Board) 
 
No.2007/TC-III/1/2  
 
 
 
            New Delhi, dt. 14-6-2007 
 
The General Manager/Claims 
All Indian Railways. 
 
Sub:  Expeditious settlement of claims filed by Industry. 
 
As Railways are aware, claims organization on the Railways is required 
to provide ‘after sales service’ to its customers in the form of prompt settlement 
of their claims as a responsible transporter committed  towards safe carriage of 
their consignments. It has however, been reported by the Industry in the 
meeting of Railway – Industry Coordination Committee presided by  Hon’ble 
MR on 10-5-07 that there are inordinate delays in the settlement and payment 
of their claims by the Railways. It has been requested by the Industry that the 
claims settlement process should be speeded up.  
 
Being the largest transporter of the country it is obligatory on the part of 
the railways for expeditious, assured and satisfactory Claims settlement 
achieved through a process which is transparent and customer friendly. The 
existing systems have to be so oriented or upgraded so as to meet with the  
expectations of the customer. 
 
The need for expeditious settlement of claims by the railways  for non-
delivery, shortage, damage etc. filed by the rail customers has been 
emphasized time & again in the past. The following instructions are once again 
reiterated for their strict compliance:-  
 
1) 
The most important parameter for judging the performance of a Claims 
Office is the time taken for settlement of claims. It is therefore necessary 
that not only time targets be laid down for different commodities and 
causes and for important customers, but firms arrangements also be 
made to process the cases on the basis of these time frames. Necessary 
flow charts for processing claims at various stages should be enforced in 
the claims office with the objective of settling these claims within the time 
schedule as laid down under Board’s letter No. 97/TC-III/49/7 dated 1-8-
97.(copy enclosed) 
 
2) 
The existing system of claims settlement is beset with delays, long drawn 
out methods, absence of live communication with customers etc., is much 
below the expectation. Arrangements have to be made to reply  each and 
every communication from the customer. Our responses should be 
positive to assure the claimant at the earliest the payability of the claim

and the time target by which he should receive the settlement. In this 
context, special meetings on quarterly basis held with important 
customers for finalizing their claims on a time bound programme are of 
extreme importance and should become the back-bone of claim 
settlement process. 
 
3) 
The adjustment of the sanctioned claim of  the Industry against their 
outstanding railway dues should not be done without giving them two 
notices. In this connection Board’s instructions as contained in their letter 
No. 2000/TC-III/9/3 dated 14-6-2000 (copy enclosed) may please be 
referred to. 
 
4) 
An effective functioning framework of rules and procedures for efficient 
handling of claims is not only a must but requires to be updated from time 
to time. There should be firm arrangements for notifying instructions to all 
staff and inspectors in the form of Standing Order Books, Compendiums 
of circulars and Manuals and there should be Workshops/Seminars for 
making them up-to-date. To start with, each railway should organize a 
workshop on quarterly basis for its staff and inspectors. 
 
5) 
Expeditious settlement of claims is one way of securing customers 
satisfaction, but it needs to be appreciated that the claims organisation  
on the railways is only a part of after-sale service, and, therefore, is in the 
form of solving a problem after it  has occurred. In order to get real 
customer satisfaction, it is necessary for the railways that the goods 
reach their destinations speedily and safely. Heavy detention of detached 
and unconnected wagons is a

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