Claim/Recoveries for Transit Insurance
Claims and/or recoveries on animals arise when an animal left the property in a good state but arrived at the yards in bad enough condition that it cannot be sold. A claim can usually be made on the animal if the owner pays transit insurance. Additionally, someone else might assist in the removal of the animal and this is termed a recovery.
Claim
Claims can be performed in two ways, either within the original sale or by creating a new sale. Leaving them in the original sale will incur all the normal charges. Creating a new Transit Insurance (Claim) Sale Type will mean only transit insurance is charged on those animals. The purchaser is in both cases is the insurer.
Recovery
Fees are not applicable to the sale of these animals and they should be sold in a new sale using the Transit Insurance (Recovery) Sale Type . The vendor is the Transit Insurance Company and the purchaser is whoever buys the animal in the end e.g. dog food meat processor and possibly not anything to do with the original sale. These arrangements can be made by the transit insurer, yard, agent or vendor themselves.
Finding the Insurer used in the Claim Account
A Transit Insurance Claim Account is used to make Claims or Recoveries for Transit Insurance. These details can be found following these steps:
- In Livestock, go to Maintenance --> Transit Insurance
- Select the Collect Transit Insurance from the list, and you will see the Claim Account used.
Creating a Claim
Option 1: Sale fees and charges apply:
To create a claim in Stockyard:
1. Obtain the average price per head for the original lot the animal was in,
2. Split the lot and put the concerned animal in the new lot,
3. Use the average price per head obtained from the original lot for this new lot,
4. Set the Buyer in the lot of the sale as the Insurer found in the Claim Account.
This information can be found in the Claim Account details in either your Transit Insurance record or in the Transit Details of the charge.5. Once you have set the Purchaser as the Insurer used in the Claim Account, process the sale to finalise.
If you are using the Accounting module, the necessary journals will will also be generated in the ledgers.
6. Follow the normal procedure for a claim.
Option 2: Only Transit Insurance applies as a charge:
1. Check if you have a Sale Type named Transit Insurance (Claims). If not, create a new sale type called e.g. Transit Insurance Claims
2. Add Transit Insurance as the only charge.
3. Create a new sale for the animal/s using this sale type.
4. Add the animal/animals to lots as needed.
5. Vendor remains as normal.
6. Purchaser is the insurer named in the Claim Account for Transit Insurance (see above)
7. The price of the animal is the average received in the original lot.
8. Process the sale and make the claim as per company policy.
Creating a Recovery
Fees are not charged at all for recoveries where the saleyard, agent or vendor are able to 'sell' the sub-standard animal onto another buyer e.g. dog food meat processor.
To create a recovery in Stockyard and generate the correct paperwork (and journals if using the Accounting module) for a recovery, follow these steps:
1. Check if you have a Sale Type named Transit Insurance (Recovery). If not, create a new sale type called e.g. Transit Insurance Recovery.
2. Create a new sale for the animal/s using this sale type.
3. In the lot, set the Vendor as the Insurer named in the Claim Account.
4. Set the purchaser to the concerned party.
5. Enter the price negotiated.
4. Once you have set the Insurer used in the Claim Account as the Vendor, process the sale to finalise.
If you are using the Accounting module, the necessary journals will will also be generated in the ledgers.
5. Follow your normal procedure for a recovery.
Viewing Claims / Recoveries in a Report
The Sale(s) containing a Claim or Recovery need to be closed to see the Claims and Recoveries in the Report.
- Run the Transit Insurance Report / Detail from Livestock --> Reports.
- Set the required date and Transit Insurance Company fields (if necessary).
- Click Generate Report
- Claims and recoveries will be visible under their headings in the report.
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