A common perception among principals is:
"Costs can be saved because in the event of loss or damage, it is assumed that the carrier or freight forwarder is liable for any damage incurred and must provide full compensation."
Practice and applicable legal regulations show that this assumption is not always true.
Transport insurance, on the other hand, can be used to insure risks of damage that are not indemnifiable via the contracted forwarder or carrier.
Legal limitations of liability
National and international transport law is characterized by weight-based liability limitations, which is why in the event of a claim there is almost always a financial loss for an exporter or an importer. In individual cases, it can even lead to the existence of the respective company being endangered.
SDR for damage to goods per kilogram gross weight
|HGB / CMR
International air traffic
CIM (China Rail)
|8.33 SDR per kg
8,33 SDR per kg
22,00 SDR per kg
2,00 SDR per kg
In practice, these sums often do not reach the value of the goods. Many goods have a low weight and a high value!
Seven advantages of transport insurance
- The transport insurance offers the advantage that the policyholder can determine the sum insured himself on the basis of the known value of the goods to be shipped and thus ensure that in the event of a loss he will always receive full compensation from his transport insurer for the loss he has incurred, irrespective of any statutory or contractual limitations of liability of the forwarder or carrier.
- There is also the possibility that the forwarder/carrier is NOT liable for damage, e.g. if it is an unavoidable event! However, the transport insurer then enters into a settlement!
- For importers, this must be taken into account if the damage is caused, for example, by general average. In such a case, none of the parties involved in the transport is liable. On the contrary, in individual cases the importer may even be called upon to pay the proportionate salvage costs.
- The importer must then nevertheless pay his purchase price to the seller, but will not receive corresponding compensation from any third party.
- Without cargo transport insurance, the owner of the goods must enforce his claims against the forwarder/carrier himself and must comply with the applicable exclusions and limitations of liability.
- The transport insurer, on the other hand, shall settle the damage promptly in accordance with the insurance contract and, in particular, without regard to whether and, if so, to what extent the forwarder/carrier is liable for the damage that has occurred.
- The risk of recourse against the forwarder or carrier causing the damage then lies with the transport insurer.
Please remember not to shy away from the small cost of transport insurance. We will be happy to help you arrange the appropriate conditions.
In individual cases, please contact Mr. Grewe directly.
Consulting and regulation
Phone number 0421 - 33 02 6 - 42
Image credit Sora Shimazaki via Pexels.com
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