Carrier's liability

The carrier’s liability insurance contract between the insurance company and the carrier includes carrier’s liability according to the CMR and TIR conventions.

Carrier’s liability insurance is a type of insurance for transportation companies with which the transported loads are being protected according the limits set by the CMR and TIR Conventions. If the goods get damaged or lost during transportation and the carrier has an indemnification obligation to the owner of the goods, the insurance company will compensate the damage according to the international CMR Convention in the existence of a carriers’ liability insurance contract

Defining the carriers’ liability for national transportations, the Law of Obligations Act or the EU Members’ analogue acts will be applied, but not in wider range than the CMR Convention.

The main restrictions of the carriers’ liability insurance:

• Damage and destruction of goods 8,33 SDR* for every damaged or missing kg or about 13 USD for a gross kg of goods (if the invoice has a lower price then according to the invoice)
• Limited liability doesn’t cover all risks, e.g. robbery.

We recommend our clients to conclude an additional voluntary insurance: cargo insurance, which usually covers 100% of the recompensable goods’ costs.

Cargo insurance covers more risks than carrier’s liability insurance.

The absence of the voluntary insurance activates the carrier’s liability insurance, which is a limited liability insurance.

*SDR (Special Drawing Rights) or International Monetary Fund’s (IMF) unit of account.