If your goods were damaged in transit, who do you turn to? Are your goods covered? Who will pay? What are your rights?
A small minority of companies believe that their goods are covered for loss and damage automatically by the forwarder or haulier. This is not the case.
Some others cite CMR as being the cover that they rely on in the event of loss or damage.
In both cases, if a loss occurs to your consignment, you are NOT insured.
This insurance is basic liability insurance laid down by the ìThe Convention des Marchandises Routier ì(CMR). This is basic cover that every haulier must have as a requirement to have an International road hauliers licence to operate.
This is a limited liability cover, so will ensure that if the driver causes an accident, or is careless or negligent, then the Insurance will cover this liability in the event of a properly formed claim. It is however often the case that:
The cost of transport, as are the cost of the goods, are payable whether the goods are lost or not. CMR cover does not cover this. Almost certainly you will have to have paid your forwarders and your factories well before there is any prospect of seeing a possible pay out under CMR. This can affect cash ñ flow, and because of the uncertain nature of the process needs to be shown in your books as a contingent liability.
What then can the prudent importer do to limit their liability and pass on the administrative burden and adversarial conduct vis a vis his suppliers?
We recommend that you look into the option of getting marine/freight transport insurance cover. There are different types and levels of cover to suit every budget and scenario. Your Sales Handler can discuss your requirements in more depth and arrange a quotation for you. The industry standard is to accept an excess of £ 200, which ensures that small and frivolous claims dont get entered into and premiums are kept to a reasonable level, but you can vary this up or down depending on your circumstances and budget.
You could very well be surprised at just how little it would cost for the extra level of insurance.
Here are the benefits to having your goods properly insured:
If youre interested in investigating more about insurance please feel free to contact Neptune where we will be happy to help.