When commencing business with a Client, we always suggest that they consider cargo in transit cover. However, we often hear that freight is covered by “CMR Insurance”, hence the Client believes that no extra cover is necessary.
We would like to bring our Client’s attention to the fundamental difference between haulier’s liability cover under CMR Convention (sometimes known as “CMR Insurance”) and Cargo Insurance.
In fact, the CMR Convention does not cover damages or losses arising from an Act of God, or where a haulier’s responsibility or negligence can not be proven. It also does not apply to furniture removal (i.e. personal effects).
With this in mind, we strongly recommend that our Clients obtain Cargo Insurance for their shipments, which provides cover for the risks of loss or damage to goods whilst in transit.
Chapter IV of the CMR Convention not only regulates the scope of a haulier’s liability (Article 17) and any compensation limits (Article 23), but also sets out detailed rules for excluding or limiting a haulier’s liability for cargo loss or damage in certain circumstances.
At the Client’s request, Anglo-Pol European Transport Ltd can arrange cargo in transit insurance underwritten by the globally recognised Lloyd’s of London syndicate.
The insurance premium represents a fraction of the insured value.
Our advice: better safe than sorry