Freight transport is globally perceived as the riskiest part when trading goods. Upon receipt of goods the carrier overtakes risks that are defined by binding international conventions (CMR, Hague-Visby Rules, Hamburg Rules, Montreal Convention).
Liability of the carrier for the goods during transport is defined by these conventions.
Relevant international conventions, depending on the type of transport, limit potential compensation for damage to the goods transported only from its gross weight.
As a result, we recommend arranging the property insurance of all shipments in transit (the so-called CARGO insurance), thus avoiding financial loss in case of damage.
Benefits of our CARGO insurance
- Insurance payout is up to 110% of damages and transportation (regardless of the limited liability of the carrier)
- Zero deductibility at insured events
- It is arranged individually according to the nature of the goods, type of transport and route of transport
- Fast settlement of a potential damaging insured event (within 15 days upon delivery of all necessary proofs of damage)
- The “All Against Risk” type always arranged
Cargo insurance is arranged at customer’s request always separately for each shipment.
SDR (Special Drawing Rights) – These are the currency units of the so-called Special Drawing Rights used within the International Monetary Fund. The code for this currency is XDR. The value of 1 XDR is approximately CZK 30.
Current CZK / XDR exchange rate is specified on the website of the Czech National Bank.
AAR – All Against Risk
This is an insurance against all risks; in terms of the maritime transport it also includes a “joint disaster at sea.”
Weight including packaging.
Insurance only for the listed dangers, excluding a “joint disaster at sea.”
Insurance Terms and Conditions
Limit of maximum compensation for damages resulting from various international conventions for different types of transport:
International Maritime Transport
It is governed either by the Hague-Visby Rules of 1968 where compensation for the liability of the carrier is limited only by the amount: 2 SDR (XDR) per 1 gross kg of goods or 666.67 SDR (XDR) per unit or by the Hamburg Rules of 1978 where compensation for liability of the carrier is limited to only by the amount: 2.50 SDR (XDR) per 1 gross kg of goods or 835 SDR (XDR) per unit.
International Air Transport
It is governed by the Montreal Protocols of 1975 where compensation for the liability of the carrier is limited only by the amount: 19 SDR (XDR) per 1 gross kg of goods.
International Railway Transport
It is governed by the individual CIM legislation of 1985 where compensation for the liability of the carrier is limited only by the amount: 17 SDR (XDR) per 1 gross kg of goods.
International Road Transport
It is governed by the CMR Convention of 1961 (herewith the Decree of 27.11.1974 by the Ministery for Foreign Affairs) where compensation for the liability of the carrier is limited only by the amount: 8.33 SDR (XDR) per 1 gross kg of goods.
Procedure in case of damage to your shipment
1. Check the outer packaging of the shipment
2. Record the extent of the damage as an objection into the delivery document of the delivering driver. Write down the damage claim and take photos of damage
3. Write a letter or e-mail notifying of the damage event and the carrier’s liability. Describe the extent of the damage, decrease, or loss and quantify the damage you incurred. Attach photos if possible.
The time limit for reporting the insurance event is within 7 days of receipt of goods for all types of transportation.