Cargo insurance

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 Hauliers' Liability cover and Cargo Insurance.

In order to clarify this misunderstanding, we use the following example:

A laptop valued at 600 Euro, weighing 3kg, whose owner did not arrange Cargo Insurance, was seriously damaged in transit. Although the haulier was at fault, their negligence could not be proven. In the circumstances the owner can only expect to receive a mere 27.30 Euro in compensation (to illustrate, the Haulier;s CMR liability limit in this case is approx. 9.1Euro per kg of damaged cargo).
Having arranged Cargo Insurance, the Client would have received a much better insurance payout, i.e. at least 600 Euro, representing the laptop’s full value.

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 loss or damage in certain circumstances.

At the Client’s request, Polanglia Ltd can arrange cargo in transit insurance, which is underwritten by the globally recognised Lloyd’s of London syndicate.

Insurance premium represents a fraction of the insured value.

Our advice: better safe than sorry

POLANGLIA Ltd
177 London Road
Southend
Essex SS1 1PW
Great Britain
E-mail: enquiries@polanglia.co.uk
Tel. +44 (0) 1702 341771