Anything can happen in life, so it’s worth being safe. Especially if you are involved in cargo transportation. Of course, no one canceled optimism, but only cargo insurance will provide a one hundred percent guarantee of financial stability and security of the business as a whole.
CMR Insurance
Insurance of the carrier's fulfillment of his obligations is used for transportation between countries and provides compensation to the owner of the cargo for damage if it arose due to the fault of the transporting party. But, at the same time, this policy acts as a guarantor in protecting the carrier in the event of cargo damage due to fire, traffic accident, car theft, theft and other unforeseen circumstances that arose through no fault of the carrier.
In accordance with the rules of international law:
- the cargo carrier undertakes to compensate for losses that arose as a result of the complete or partial loss of the cargo, the amount is calculated according to the value of the cargo during its loading for transportation;
- the cost of the cargo must correspond to rates on exchanges, market prices, or be determined according to the cost of a similar product;
- the maximum amount of compensation is calculated in francs and cannot exceed a quarter of a hundred per kilogram of missing weight;
- Amounts for transportation, customs duties and other expenses associated with transportation are also subject to compensation.
Cases of exemption from obligations
The carrier is not responsible and must not compensate at his own expense for the loss of cargo in the following cases:
- if the accompanying person was not informed about valuable or unsafe cargo at the time of transfer of the cargo;
- if losses arise due to a delay in delivery (if this point was not agreed upon in advance in the form of a written certificate);
- if losses arise as a result of loss of profit, etc.
Mandatory clauses of the insurance contract
Each insurance contract must contain the following mandatory clauses:
- name, weight, size of cargo;
- list of accompanying documents;
- method of transportation and type of transport;
- destination address;
- dispatch and delivery time;
- insurance amount.
Additionally, at the discretion of the owner, the cargo can be insured by insurance companies. This information must be provided to the carrier before signing the service agreement.
