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Carrier Liability Insurance covering your legal liability whilst carrying Customers goods and subject to your conditions of carriage.
Covers the Carriers legal liability arising from the damage to goods in transit and whilst they are in their custody and control.
However, unless the Carrier can be found to be legally liable in relation to their negligent handling of the goods then there is no compensation due to the owner of the damaged or lost goods.
In circumstances where the carrier is found to be negligent, then the compensation available is limited to their conditions of carriage and payments are calculated applying a rate per kilo in respect of goods lost or damaged.
The rates applied are called Standard Drawing Rights (SDRs) and were introduced by the IMF in 1971 in an effort to regulate international commerce. The level of SDRs paid per kilo depends on the conditions of carriage employed during the transits.
Domestic only transits are conducted under RHA (Ireland IRHA) and the terms under these conditions equates to €1,800 per tonne.
Payments in respect of International transits carried under the CMR Convention are made at 8.33 Standard Drawing Rights (SDR’s) per Kilo which equates to approximately €9,500.00 per tonne.
These are the standard trading terms upon which Hauliers/Carriers and Manufacturers conduct business within Ireland. The conditions contained within these terms are the basis of any contract between the Carrier and the Manufacturer, unless otherwise agreed.
Some Carriers require increased limits beyond the standard limits, but again this is still only in relation to incidents, in which they are found to be legally liable.
It is important for the Carrier to extend their insurance policy to include these increased limits otherwise the Carrier will be assuming liability beyond the limits under the standard conditions of carriage covered under the policy and will be left exposed for the difference.
