CMR insurance is a liability insurance covering the international road carrier's legal liability for loss of or damage to the cargo. Cargo transit insurance, by contrast, insures the cargo owner's goods directly. CMR compensation is limited to 8.33 SDR per kilogram of gross weight, and nothing is paid in cases where the carrier is not liable.
Whom does each policy protect?
The key difference is who the insured party is. CMR insurance is the carrier's policy: the cargo owner claims compensation for damage from the carrier, and the carrier's insurer pays only if the carrier is liable under the CMR Convention and only up to the amount the CMR provides for. Cargo transit insurance is the cargo owner's policy: if the damage is within the scope of cover, the cargo owner is paid regardless of who was at fault, and the insurer later takes recourse against the carrier at fault.
Comparison table
| Criterion | CMR insurance | Cargo transit insurance |
|---|---|---|
| Type of insurance | Liability insurance | Property insurance |
| Insured | Carrier | Seller or buyer (depending on the delivery term) |
| Basis | CMR Convention (Law No. 3939 in Türkiye) and policy conditions | General Conditions of Cargo Transit Insurance (Emtia Nakliyat Sigortası Genel Şartları) and ICC clauses |
| Compensation limit | 8.33 SDR per kg gross (Art. 23) | Sum insured stated in the policy |
| Condition for payment | The carrier is liable | The damage is within the scope of cover |
| Period covered | From the moment the carrier takes over the goods until delivery | Warehouse to warehouse according to the policy; may include more than one mode of transport |
| Delay loss | Up to the amount of the carriage charges at most | Generally not covered |
What does the 8.33 SDR limit mean in practice?
Article 23 of the CMR limits compensation for loss or damage to 8.33 SDR per kilogram of gross weight short. The effect of the limit varies greatly with the value of the cargo per kilogram:
- High-value, light cargo: 2,000 kg gross of electronics worth USD 300,000. The limit is 2,000 × 8.33 = 16,660 SDR; taking the SDR at about USD 1.35, this comes to around USD 22,500. The remaining USD 277,500 of loss stays with the cargo owner.
- Low-value, heavy cargo: 20 tonnes of steel profiles worth USD 30,000. The limit is 166,600 SDR, above the value of the goods; if the carrier is liable, the full loss can be covered.
The limit can be raised if the sender pays a surcharge and has a declaration of value or a declaration of special interest entered on the CMR consignment note; it does not apply in the event of wilful misconduct by the carrier or default equivalent to wilful misconduct. Details are in the 8.33 SDR compensation limit entry.
In which cases is the carrier not liable?
Article 17 of the CMR relieves the carrier of liability in two groups of cases. The first group covers the wrongful act, neglect or instructions of the claimant, inherent vice of the goods, and circumstances the carrier could not avoid and whose consequences it could not prevent. The second group lists special risks: use of open vehicles when agreed, defective packing, loading or stowage by the sender, the nature of the goods such as breakage, rust or spontaneous deterioration, insufficient marks, and the carriage of livestock. In these cases the carrier's policy does not respond; only cargo insurance covers the loss. Other cases where no payment is made are collected in the entry when CMR insurance does not pay.
Why should the cargo owner also take out cargo insurance?
- For valuable cargo, the CMR limit covers only a small part of the actual loss.
- In the exemption cases of Article 17, no compensation can be obtained from the carrier.
- Recovering compensation from a carrier requires proof, correspondence and sometimes litigation; under the CMR the limitation period is, as a rule, one year.
- The cargo owner often does not know the limit, deductible or validity of the carrier's policy.
- If the shipment includes a non-road leg such as RoRo or storage, the CMR may not cover that part.
How does Voltim Global support you on this?
For international road shipments, Voltim Global assesses with the cargo owner at the quotation stage whether the CMR limit is sufficient for the value of the cargo. For cargo where the limit falls short, complementary cover is recommended with a cargo transit (All Risks) policy.