This topic describes the procedure to settle guarantee claims.

1. On the Homepage, type LCDGCLP in the text box, and click next arrow.
   The Claim Settlement screen is displayed.

   Figure 9-39 Claim Settlement

   
   

   
   Description of "Figure 9-39 Claim Settlement"

   
   
2. On the Claim Settlement screen, click New.
   The Claim Settlement screen is displayed with no details.

   Note:

   Specify the claim settlement details.

   Figure 9-40 Claim Settlement

   
   

   
   Description of "Figure 9-40 Claim Settlement"

   
   

   For more information on fields, refer the Field Description table.

   Table 9-39 Claim Settlement - Field Description

   Field	Description
   Contract Reference	Specify the Guarantee Contract Reference against which the claim is received by the bank and settlement needs to be done. Select the contract reference from the drop-down list. The list displays only claims for which the status is Lodged. Click Populate P button to generate the contract details. This field is mandatory.
   Claim Serial No	Specify the claim serial no. for which settlement needs to be done. System validates that the entered unsettled claim is as per the sequential order of lodgement and status of the claim is Lodged.     This field is mandatory.
   Issue Date	Date on which the guarantee is issued
   Expiry Date	Date of expiry of the guarantee
   Claim Date	Date for claiming the guarantee
   Claim Expiry Date	End date for settling the claim
   Currency	Currency of the guarantee
   Amount	Amount of the guarantee
   Outstanding Amount	The system displays the outstanding amount of the guarantee by default.
   Applicant Name	The system defaults the applicant name
   Address	Address of the counterparty.
   Counterparty Type	Party type of the counterparty
   Counterparty Reference	Reference Number of the counterparty.
   Beneficiary Name	Name of the beneficiary.
   Address	Specify the address of the beneficiary.
   Claim Details	Specify the claim details:

3. Click Save.
   The Claim Settlement details are saved.
4. Click Main tab.
   The Main details are displayed.

   For more information on the fields, refer the following table.

   Table 9-40 Main - Field Description

   Field	Description
   Issue Date	Date on which the guarantee is issued The system displays the Issue Date by default.
   Expiry Date	Date of expiry of the guarantee The system displays the Expiry Date by default.
   Claim Date	Date for claiming the guarantee The system displays the Claim Date by default.
   Claim Expiry Date	End date for settling the claim The system displays the Claim Expiry Date by default.
   Currency	Currency of the guarantee The system displays the Currency by default.
   Amount	Amount of the guarantee The system displays the Amount by default.
   Outstanding Amount	The system displays the outstanding amount of the guarantee by default.
   Counterparty Name	The system displays the counterparty name.
   Address	Address of the counterparty. The system displays the counterparty address.
   Counterparty Type	Party type of the counterparty The system displays the counterparty type.
   Counterparty Reference	Reference Number of the counterparty. The system displays the counterparty reference by default.
   Beneficiary Name	Name of the beneficiary. The system displays the beneficiary name by default.
   Address	Specify the address of the beneficiary. The system displays the address of the beneficiary. by default
   Claim Details	Specify the claim details:
   Claim Lodgement Date	The system displays the claim lodgement date by default.
   Claim Amount	The system displays the claim amount by default.
   Remarks	Specify remarks if any in the text box and click Ok.
   Template Id	Select the template ID from the option. list. Template ID is applicable only when the party type is applicant bank or issuing bank. Template ID is applicable only if SWIFT 2018 is enabled. Note: The claim message is generated only if the template is selected.
   Claim Status	The status of the claim is displayed here.
   Ancillary Message	Check this box to generate MT 759 on contract authorization.
   Ancillary Message Function	Specify the ancillary message function. Alternatively, you can select the ancillary message from the option list. The list displays all valid options maintained in the system. Ancillary Message Function is mandatory if Ancillary Message is checked.
   Payment Details	Specify the payment details:
   Claim Payment Date	The system displays the claim payment date by default.
   Claim Payment Amount	The system displays the claim payment amount by default.
   Remarks	Specify remarks, if any.
   Liquidate using Collateral	Check this box to indicate if the collateral needs to be utilized for the settlement of the claim.
   Settle Available Amount	Check this option to debit the available amount from applicant and then create loan for the remaining amount during claim settlement. Settle Available Amount can be selected only when you select the Loan for Claim Settlement, else the system will validate the same.
   Loan for Claim Settlement	System defaults the value maintained at product level. You can check/un-check this box to indicate that loan needs to be created or not for this claim settlement.
   External Loan Request Status	The system displays the external loan request status.
   Claiming Bank Details	Display Claiming Bank Details – Based on the details provided in LCDGCLM screen this section will be populated. It is not editable section (only view).
   Type	Displays the Claiming Bank Party Type.
   Reference	Displays the Claiming Bank Party Reference.
   Party Id	Displays the Claiming Bank Party ID.
   Name	Displays the Claiming Bank Party Name.
   Address 1	Displays the Claiming Bank Party Address 1.
   Address 2	Displays the Claiming Bank Party Address 2.
   Address 3	Displays the Claiming Bank Party Address 3.
   Address 4	Displays the Claiming Bank Party Address 4.
   Settlement Details	Specify the settlement details:
   Settlement Account Branch	The system displays the settlement account branch on selection of the debit account number:
   Settlement Account Currency	The system displays the settlement account currency on selection of the debit account number.
   Settlement Account	The system displays the settlement account details.
   Charges Debit Account Branch	The system displays the charges debit account branch on selection of the charges debit account number.
   Charges Debit Account Currency	The system displays the charges debit account currency on selection of the charges debit account number.
   Charges Debit Account	The system displays the charge debit account details.
   External Pricing	Specify the External Pricing details.
   External Charge	Check this box to indicate that external charges can be fetched from external pricing and billing engine for contracts created under this product. External Charge is enabled only when the system integrates with external pricing and billing engine (PRICING_INTEGRATION = Y at CSTB_PARAM level).

5. On the Claim Settlement screen, click Advices tab.
   The Advices is displayed.

   Figure 9-41 Advices

   
   

   
   Description of "Figure 9-41 Advices"

   
   

   Note:

   The system displays the advises in the following fields:

   For more information on the fields, refer the Field Description table given below:

   Table 9-41 Advices - Field Description

   Field	Description
   Message Type	System displays the message type of the message/advice generated. This field is optional.
   Party Type	System displays the party type for which the message/advice is generated. This field is optional.
   Party ID	System displays the party id for which the message/advice is generated. This field is optional.
   Party Name	System displays the party name for which the message/advice is generated. This field is optional.
   Medium	System defaults the medium in which the message has to be sent for the party. You can modify this. This field is optional.
   Priority	System defaults the priority value of sending the message maintained at product level. You can modify this. This field is optional.
   Suppress	Check this box to suppress the message. This field is optional.
   Charges	System displays the charges for the claim. This field is optional.
   FFT Details	Specify the FFT Details:
   Free Format Text Code	Specify the free format text code. This field is optional.
   Text	Specify the free format text here. The details for the following subsystems are defaulted from Guarantee/SBLC contract level. Event Details Settlement Details Charge Details Tax Details Message Preview Remarks Loan Preferences Collateral Details Split Settlement Guarantee Collateral will be utilized proportionately for claim settlement and customer available balance will be utilized for the remaining amount. In case of inadequate funds in customer account, loan can be created for the remaining amount. On Save, Loan is created and the generated Loan Reference Number is made available in Linkages Subsystem in LCDGUONL screen. Accounting entries are posted for below: Reversal Contingent entries are not applicable for issuance Collateral Utilization Adjustment from Customer Account Loan Creation Advices: Guarantee claim advice GUA_CLAIM_ADV/MT799 is generated during claim lodgement. MT202 / Payment Advice is generated on Claim Settlement. Rejection advice GUA_CLAIM_REJ/MT799 is generated during claim rejection Guarantee advice /MT760 is generated during guarantee issuance. Guarantee amendment GUA_AMD_INSTR/MT767 is generated during amendment. If Ancillary Message is checked then Guarantee claim settlement advice GUA_PAY_ADV/MT759 is generated during claim Settlement if SWIFT 2018 is enabled. Guarantee claim settlement advice GUA_PAY_ADV/MT799 is generated during claim Settlement if SWIFT 2018 is enabled.

6. On the Claim Settlement screen, click Hold button.
   You can hold the data entered. On hold of the contract, the status of the contract will be updated as Hold and the system will not do any mandatory validation on the data.

   In auto-auth case, if hold is selected, then the contract will be in unauthorized status. System will not consider the contract which is on hold for any other processing. During EOD, system will not consider the records which are on hold as pending transactions.