What is the legal basis for CMR insurance?

CMR insurance is based on the CMR Convention (1956), which sets out the rules for international carriage of goods by road, including documentation requirements and the carrier’s liability limits.

Why is CMR insurance more than a tick-box requirement?

Used properly, CMR insurance is a risk management tool. It can protect a transport company financially, reduce dispute risk, and encourage stronger internal processes around documentation, reporting, and compliance.

How is the carrier’s liability calculated under the CMR Convention?

A key nuance is that liability is limited by cargo weight, not cargo value. Under the CMR Convention the standard limit is 8.33 SDR per kilogram, which can be significantly lower than the value of high-priced, lightweight goods.

What does a standard CMR policy usually cover?

Standard CMR policies typically cover cargo loss or damage, certain losses caused by delivery delays (subject to terms), costs of expert assessment to determine the loss, and cargo salvage expenses.

What additional coverages are worth considering for CMR insurance?

Depending on operations, it may be worth adding cabotage coverage, provisions addressing gross negligence (often excluded by default), and compensation for customs duties and taxes if liabilities remain after cargo damage.

What information must be disclosed to the insurer to avoid claim issues?

Insurers typically require complete and accurate information about routes, the type of transport, cargo nature, and operating territory. Material changes should be reported promptly, as they can affect claim decisions.

Which operational risks commonly affect CMR claims?

Common risk areas include parking conditions (especially during driver rest periods and in unsecured locations) and compliance with tachograph and rest-time requirements. These factors can influence coverage depending on policy terms.

What is CMR insurance and why is it more than just a tick-box in a contract?

Q: What is CMR insurance?

CMR insurance covers a road carrier’s civil liability for loss of or damage to cargo, and certain related losses, during international road transport subject to the CMR Convention.

Guntis Zoldners
5 days ago
3 min read

a fleet of trucks covered by CMR insurance.

CMR insurance is, in essence, simple – the carrier insures their civil liability for losses that may occur to the cargo owner during transportation. However, in practice, this policy hides many important nuances that often only become clear when an incident actually occurs.

Unfortunately, many transport companies still purchase a CMR policy only because it is required by partners or clients. It is treated similarly to compulsory motor insurance – necessary in order to operate.

As a result, when an insured event occurs, the policy is not used to its full potential or is not reported at all, due to lack of knowledge or simple oversight.

In contrast, more progressive market players use CMR insurance as a business protection and risk management tool, helping not only to safeguard the company but also to structure internal processes.

Legal basis of CMR insurance

CMR insurance is based on the CMR Convention adopted in 1956, which regulates international road transport of goods. It defines:

the distribution of liability between the parties involved,
transport documentation requirements,
and the limits of the carrier’s liability.

The CMR consignment note is the key document confirming the application of the Convention to a specific transport operation.

Limited liability – a crucial nuance many are unaware of

One of the most important aspects that is often overlooked is that the carrier’s liability is limited by the weight of the cargo, not its value.

According to the CMR Convention, the liability limit is 8.33 SDR per kilogram.

SDR (Special Drawing Rights) is an international currency basket, and currently 8.33 SDR is approximately EUR 10.

This means:

The carrier is liable for damaged or lost cargo only up to ~EUR 10 per kg.

This represents the most critical risk when transporting lightweight but high-value goods, such as:

electronics,
medical equipment,
high-value spare parts.

Transparency of information – decisive for receiving compensation

As with any type of insurance, in CMR insurance the insurer must be provided with complete and accurate information about the transport operations:

routes,
type of transport,
nature of the cargo,
area of operation.

The freight transport industry is dynamic, and it is not always possible to predict everything in advance. Therefore, it is important to remember:

Any material changes from the originally provided information must be communicated to the insurer in a timely manner, as they can be decisive in the compensation decision.

What does CMR insurance usually cover?

Standard CMR policies typically include:

damage to or loss of cargo,
losses caused by delayed delivery,
expert assessment costs to determine the extent of damage,
cargo salvage expenses.

However, this is often not sufficient.

Additional coverages worth considering

For a CMR policy to truly work in the company’s interest, it is often recommended to additionally include:

cabotage transport (domestic transport within another country),
coverage for gross negligence (often a standard exclusion),
compensation of customs duties and taxes if the cargo is damaged but tax liabilities remain.

These enhancements usually do not significantly increase the policy price, but they can determine whether compensation will be paid at all.

Particularly important risks to pay attention to

1. Vehicle parking conditions

Theft most often occurs:

during the driver’s mandatory rest periods,
in remote or unsecured parking areas,
at the destination outside working hours while waiting for unloading.

Secure paid parking is not always available, but some insurers allow more flexible parking conditions if these are agreed in advance in the policy.

2. Compliance with tachograph and rest regulations

Objective circumstances – roadworks, traffic accidents, congestion – do not always allow rest periods to be observed precisely.

In practice, however, many insurers deny compensation if these requirements are not met.

Here too, solutions are possible, provided they are considered before concluding the policy.

Conclusion

CMR insurance is not merely a formal requirement. It is a complex but extremely powerful instrument when used consciously. The market offers a range of options to expand coverage and tailor the policy to the company’s actual operations.

In practice, this means: