Road carrier’s liability insurance, or CMR insurance
With road carrier’s liability insurance, a carrier performing road transport operations can insure the liability arising from the contract of carriage concluded with its client in accordance with the Convention on the Contract for the International Carriage of Goods by Road (CMR Convention) or national law.
The liability of the carrier can be easily insured
Carrier’s liability insurance provides an opportunity to insure the carrier’s civil liability in accordance with the contract of carriage concluded between the client of the carriage and the road carrier.
Useful links:
What do we indemnify?
If the goods are damaged or lost during transportation and the carrier becomes obligated to compensate the owner of the goods, ERGO will indemnify the damage on the basis of the carrier’s liability insurance in accordance with the CMR Convention.Cooperation with forwarding agents
The carrier is also required to have liability insurance by forwarding agents who organise the transport.Rejection of groundless claim
Insurance cover may also be required if the carrier is not liable for damage to the goods in accordance with the contract of carriage. In this case, ERGO will help repel the claim against the carrier.Carrier reliability
If the carrier has taken out carrier’s liability insurance, the owner of the goods can be sure that they are using a reliable carrier, who also has the necessary collateral for the Association of Estonian International Road Carriers.What is covered by ERGO insurance?
Loss of and damage to goods
Claims arising from loss of and damage to goods, for which the carrier is liable in accordance with the CMR Convention or in transport within Estonia in accordance with the Law of Obligations Act.
Financial losses
Financial losses arising from the contract of carriage resulting from damage to goods, such as a claim for indemnification for transport charges or a claim for indemnification of customs duties.
Legal assistance
The cover also includes expenses incurred to prevent or reduce the insured event or expenses incurred to repel the claim (legal assistance).
Unavoidable expenses
ERGO indemnifies the unavoidable expenses for the disposal of cargo and remnants after the insured event in accordance with the insurance terms and conditions.
Rescue expenses
Liability for participation in the ship’s rescue expenses as a result of the General Average procedure. If a ship with cargo is in danger at sea, and expenses are required to save the ship and its cargo, then the owners of the cargo, the owners of the ship, as well as the road carriers whose truck was on board the ship are involved in the sharing of such expenses. A deposit or warranty may be required from the carrier to release the cargo. If there is corresponding additional risk cover, such a warranty is provided by the insurance company.
Late arrival
Liability for damage caused by delay in accordance with the CMR Convention or the Law of Obligations Act.
What is covered by ERGO insurance?
Claims arising from loss of and damage to goods, for which the carrier is liable in accordance with the CMR Convention or in transport within Estonia in accordance with the Law of Obligations Act.
Financial losses arising from the contract of carriage resulting from damage to goods, such as a claim for indemnification for transport charges or a claim for indemnification of customs duties.
The cover also includes expenses incurred to prevent or reduce the insured event or expenses incurred to repel the claim (legal assistance).
ERGO indemnifies the unavoidable expenses for the disposal of cargo and remnants after the insured event in accordance with the insurance terms and conditions.
Liability for participation in the ship’s rescue expenses as a result of the General Average procedure. If a ship with cargo is in danger at sea, and expenses are required to save the ship and its cargo, then the owners of the cargo, the owners of the ship, as well as the road carriers whose truck was on board the ship are involved in the sharing of such expenses. A deposit or warranty may be required from the carrier to release the cargo. If there is corresponding additional risk cover, such a warranty is provided by the insurance company.
Liability for damage caused by delay in accordance with the CMR Convention or the Law of Obligations Act.
Additional covers offered
In addition to the basic covers, you can also choose additional covers that suit your needs.
Third party liability
Liability to a third party arising from damage to the property of a third party in connection with the goods being transported.
Container damage
Liability to the owner of the container in case of damage to the transported container.
Payment of freight charges
Indemnity for unpaid freight charges if the carrier is not liable for the damage caused.
Gross negligence
Indemnification for damages caused by gross negligence.
Cabotage transport
The liability of the carrier for cabotage transport in accordance with local law.
Additional covers offered
In addition to the basic covers, you can also choose additional covers that suit your needs.
Liability to a third party arising from damage to the property of a third party in connection with the goods being transported.
Liability to the owner of the container in case of damage to the transported container.
Indemnity for unpaid freight charges if the carrier is not liable for the damage caused.
Indemnification for damages caused by gross negligence.
The liability of the carrier for cabotage transport in accordance with local law.
Good to know / FAQ
Yes, it is. If the cargo insurer indemnifies the owner of the goods, the insurance company still retains the right to file a claim for refund against the carrier to the extent of the indemnity.
The liability of the carrier is regulated by the CMR Convention for international transport and the Law of Obligations Act for domestic transport. The carrier’s liability is limited to 8.33 SDR (approximately EUR 10) per gross kilogramme of damaged or missing goods (weight of goods, including packaging). This means that if the value of the damaged or lost goods is higher, the carrier will still be liable to the extent provided for in the CMR Convention.
Yes, it can, but we still enter into two insurance contracts to mitigate the risks associated with the liability of forwarding agent, on the one hand, and of the carrier, on the other hand.
Yes, it applies, but not more than the limits set out in the CMR Convention. In many countries, national law assigns greater liability to the carrier than the CMR Convention, in which case separate cabotage cover should be purchased.
