“Survey Agent” vs. “Claim Settling Agent” — Is It a Discrepancy?

Introduction

In documentary credit examination, a small difference in wording can sometimes make a significant difference. But does “survey agent” satisfy a credit requirement for a “claim settling agent”?

Here is a question on this point.

Question

Dear Mr. Old Man,

I have a question for you.

The LC states: “Insurance policy should indicate claim settling agent in the country of arrival.” However, the policy states “survey agent” instead of “claim settling agent.”

Is it a valid discrepancy or not?

Thank you.

Best regards,

Fatih

______

Answer

Dear Fatih,

Thank you for your question.

UCP 600 Article 14(d) says that data need not be identical to the wording in the credit, but it must not conflict with the credit when read in context and in light of international standard banking practice.

The LC requires the insurance policy to indicate a “claim settling agent,” while the presented policy indicates a “survey agent” instead of the “claim settling agent” required by the LC.

Therefore, the discrepancy is valid under UCP 600 Article 14(d).

Best regards,

Mr. Old Man