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Claim Terms and Definitions

Mitigation/Amendment - Claim reduction due to repair, discount or scrap allowance.

Dispute - Declination “unacceptable”, client or AFS reject conclusion form Carrier, request full or more acceptable payment from Carrier.

Packaging Guidelines - Based on the NMFC (National Motor Freight Classification), freight is shipped by Item type and must be packaged per the guidelines assigned to the type. Package means any container and its contents.

NMFC - Rules outlined by the Transportation & Logistics Council (Note: Volumes I & II are at Linda’s desk)

Acknowledgement - Carrier sends notification that they have received the claim with their “reference/claim” number assigned. (Note: Certain carrier’s also identify the assigned Examiner).

Disposition - Location of freight or intent of claimant regarding freight refused or “On-Hand”.

On-Hand - Carrier is holding freight that was undeliverable for any reason, owner of the freight (shipper or consignee) has to give instructions to deliver.

Salvage Retention - Retaining (keeping) freight until an issue has been settled.

Inspection - Freight evaluated by interested parties (client, carrier or contracted independent party) to determine extent of damage.

Act of Nature - Elements outside of human control, (i.e. rain, hail, sleet or snow) that result in freight being loss/damaged.

Litigation - Situation (i.e. claim, payment dispute,) escalated to “Legal Counsel” for handling.

Non-Compliance - Failure to respond to specific requirements as related to an issue. (I.e. Request from Carrier for additional information to support claim).

Salvage Allowance - Amount credited for any usable portion of the freight.

Settlement - Negotiated offer of payment for a less amount.

Conclusion -Final review and disposition of issue.

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