In international transportation, cargo insurance is voluntary. However, there are important points concerning the compensation of possible losses by the insurance company or carriers, which are not accepted, because it is not profitable.
In the Convention on the contract for the international carriage of goods by road there are interesting points:
- Article 23, paragraph 3-indemnification by the company shall be carried out within the limit of liability. What does it mean? For automobile transport, the maximum amount of compensation per 1 kg of weight is approximately $ 11.4 (equivalent to SDR 8.33 at the current rate) when the cargo has not been evaluated and its value has not been announced;
- Article 17, paragraph 2-if the goods are damaged due to force majeure, the carrier shall be relieved of responsibility for the damage caused.
Examples from life, confirming the value and necessity of cargo insurance
Transportation of laptops. The value of the party-900 thousand dollars. The cargo was not insured. In a way stole 1 pallet of equipment which cost 90 thousand dollars. According to article 23, paragraph 3 of the CMR compensation to the owner will be only about 32.5 thousand dollars with a unit weight of 2.5 kg. as a result, the loss amounted to 57.5 thousand dollars, and the policy, which could compensate the losses in full, would cost the client 2.3 thousand dollars.
When transporting uninsured cars (the value of the cargo 160 thousand dollars) in the Parking lot for drivers in AVTOVAZ crashed truck. As a result, 5 out of 8 cars were damaged. since at the time of the accident AVTOVAZ did not move, the fault of the carrier in the incident is not, and therefore there is no one to compensate for the losses. The result-the loss of the customer amounted to 100 thousand dollars, and the insurance policy would cost only 570 dollars.