Meaning
Compensation demand procedures establish the financial accountability for cargo damage, loss or delay occurring during international air carriage under the Montreal Convention. Legal liability for air freight claims rests upon the carrier from the moment the airline takes possession of the goods at the origin airport until the point of release at the destination terminal. Statutes specify time constraints for notifying the carrier of any discrepancies, as failure to file within the mandated periods extinguishes the right to pursue recovery.
Jurisdictional Scope
Regulatory frameworks define the ceiling of liability through the Special Drawing Rights unit rather than through the invoice value of the cargo. National aviation authorities supervise these mechanisms to ensure domestic compliance with international aviation treaties during disputes involving foreign carriers. Provisions within the airway bill dictate that a claimant must initiate legal proceedings within two years of the date of arrival or the date the flight should have arrived to maintain the action.
Tribunals reject cases where evidence lacks the necessary documentation from the airport of departure or the customs clearance records at the arrival port.
Procedural Burden
Filing requires submission of the preliminary notice of damage within seven days of receipt for damage and fourteen days for delay. Documentation mandates the production of the original air waybill, a formal damage report issued by the ground handling agent, and itemized proof of the economic loss suffered by the consignor. Carriers utilize independent surveyors to verify the reported condition of the packaging and the integrity of the seals against the damage log recorded at the transit warehouse.
Settlement Discrepancies
Administrative friction arises when the carrier disputes the causal link between the transportation process and the physical state of the cargo. Insurance underwriters and airline legal departments evaluate the contractual exclusions defined by the carriage agreement to mitigate payout obligations for perishables or high value electronic components. Payment recovery often shifts from the carrier to the cargo insurer who asserts subrogation rights based on the evidence collected during the initial transit inspection.
Final liability rests upon the party that failed to exercise due care as defined by the air waybill contract of carriage.