Cargo insurance minimises potential financial losses in the event of damage to cargo which could occur during transport or storage of the cargo. Cargo safety is essential for both the cargo owner and the carrier, but 100% safety cannot be guaranteed and the carrier’s liability is limited by CMR, so we recommend to have cargo insurance. Cargo insurance from SIA LOĢISTIKAS RISINĀJUMI is in force throughout the transport and during unloading and storage. We offer our customers cargo insurance so that freight transport happens without unpleasant surprises. To find out more about cargo insurance, contact our specialists!
Liability of the freight carrier and CMR
Sometimes we hear opinions that if the cargo is already insured by the carrier, it is not necessary to insure it in addition. However, there is a known difference between these types of insurance of transported cargo. For example, if cargo is damaged or destroyed not due to the fault of the freight carrier but due to natural disasters, according to the law the carrier is not liable for this. The Convention on the Contract for the International Carriage of Goods (CMR) provides for limitations on the liability of carriers.
The liability rates of the freight carrier determined by CMR are:
- In road transport, the liability rate is 8.33 SDR (approximately EUR 8.6) per gross kilogram of cargo.
- In air transport – 16.67 SDR (approximately EUR 17) per gross kilogram of cargo.
- In maritime transport – 666.67 SDR (approximately EUR 688) per unit.
Who needs cargo insurance?
Since the carrier cannot be liable for damages in the circumstances, which could not been affected or prevented, we recommends to avoid any material losses and consider cargo insurance. Damage, loss and destruction of transportable cargo can happen due to different conditions. For example, insufficient packaging of products, natural disasters, road traffic accidents, cargo theft, etc., which can be partially or fully covered by cargo insurance. Since each freight transport involves a certain level of risk, freight insurance is a significant precondition that will make feel safer both cargo owners and carriers. Cargo insurance can be one-off insurance or general cargo insurance (in case of regular transport), and there are different levels of liability: liability for all risks and limited liability, for example, for specific risks such as traffic accident or theft.
To find out which cargo insurance works best for you, contact us!
Prices of cargo insurance
Prices of insurance of transported cargo vary depending on different factors:
- Conditions of the cargo insurance policy;
- Value of the cargo;
- Cargo nomenclature;
- Type of cargo;
- Transportation factors starting from transport and route and ending with the number of transhipments;
- Geographical region;
- Duration of the relationship with the insurer.
Cargo insurance is the most convenient way to take care of minimising the risk of damage or destruction of cargo. If you want to find out about the conditions and costs of cargo insurance we offer, contact us!
