MDD was appointed to assist the loss adjuster in determining the validity of the miner’s business interruption claim.
The claim as presented was well structured within the policy coverage and supported by the miner’s accounting reports. Given the complex nature of the operation, MDD launched an investigation into the day-to-day mining practices to determine if any underlying issues were not forthcoming in the miner’s claim and reporting.
Our investigation revealed that during the period applied to determine the claimed standard production, an unusual occurrence for one month resulted in an overinflated daily mining standard.
In addition, our investigation into stock on hand and sales practices revealed that the miner had not experienced a loss of sales in all the claimed products during the maximum indemnity period.