Is CMR Enough? Two Layers of Cargo Protection

The cargo has been loaded. There is a CMR consignment note and the carrier has liability insurance. That still does not mean the cargo's full value is protected.

The short answer is that a CMR note is not an insurance policy. Carrier liability is not the same as insuring the cargo itself, either. The first determines when and how much the carrier must pay. The second protects the insured interest in the cargo against the risks selected in the contract.

Cargo and liability: the short version

The key distinction: cargo insurance protects the goods themselves, while carrier liability concerns the carrier's legal obligation to compensate for damage. Both mechanisms may apply to one incident, but their triggers and limits are different.

Cargo insurance protects the goods in transit. The policyholder may be the cargo owner, seller, buyer or another party with a financial interest in the goods. The first question is whether the event falls within the policy cover, rather than whether the carrier's fault has already been proved.

Carrier liability is the carrier's legal obligation to its customer. Under Uzbekistan's Civil Code and transport legislation, a carrier is liable for loss, shortage or damage to cargo it has accepted unless it proves that the event occurred without its fault. CMR rules may apply to international road carriage.

There is also a separate product: freight forwarder and carrier third-party liability insurance. EUROASIA's policy in this category protects the forwarder's or engaged carrier's liability to third parties, including injury to people and damage to other property, road infrastructure or the environment. It does not automatically insure the cargo owner's shipment for its full value.

The main differences in one table

These protections do not cancel each other out. After paying a cargo claim, the insurer may pursue the liable carrier. That is why the incident should be documented, a written notice should be sent to the carrier and all supporting records should be retained.

CMR governs carriage; it is not insurance

CMR is the Convention on the Contract for the International Carriage of Goods by Road. Uzbekistan is a contracting party. It applies to paid road carriage when the place where the goods are accepted and the place designated for delivery are in different countries and at least one of those countries is a party to CMR.

The CMR consignment note helps establish the carriage contract and the carrier's receipt of the goods. It is not an insurance policy.

Under CMR, the carrier may be liable for total or partial loss, damage and delay from the time it takes over the goods until delivery. The standard limit for loss, however, is 8.33 SDR per kilogram of gross weight short. The SDR is an accounting unit of the International Monetary Fund, and its value in local currency changes.

For lightweight but expensive electronics, a weight-based limit may be far below the shipment's commercial value. Declaring the cargo's value or a special interest in delivery in the consignment note can alter the limit, but it still does not turn CMR into cargo insurance.

Three situations and three different answers

1. The truck is involved in a road accident

The cargo is damaged, and another vehicle is damaged as well.

• If collision is included in the selected cargo cover, the cargo owner claims from its insurer. Compensation is calculated within the sum insured and subject to the deductible.
• If the carrier is liable, a separate claim may arise against it. For international road carriage, CMR limits and exclusions must be considered.
• Damage to the other vehicle or road infrastructure concerns the carrier's liability to third parties.

One accident can create three different losses. It is therefore not enough to say that “the carrier has a policy.” You need to know which policy it is and whose interest it protects.

2. The cargo is stolen from an interim warehouse

The decisive question is whether the warehouse and storage stage form part of the insured route.

EUROASIA cargo cover may extend to transshipment, a change of transport and interim storage when those stages are declared in advance as part of the route. “All risks” is the broadest option, but it does not literally mean everything: contractual exclusions still apply.

A claim against the carrier depends on who controlled the cargo when it was stolen, whether the carrier was liable and what the contract says. If an independent warehouse is responsible, the claim may need to be directed to another party.

3. The cargo is damaged during transshipment

A box is dropped while being moved from a container to a truck.

• The cargo policy may respond if transshipment forms part of the agreed route.
• A liability claim depends on who performed the handling and what caused the damage.
• If several modes of transport or carriers are involved, each stage and the condition of the cargo at every handover should be recorded clearly.

Pre-shipment photographs, packaging condition, seal details and handover records are especially important in this situation.

How to choose protection for a specific shipment

EUROASIA insures goods carried on domestic and international routes by road, rail, air and sea. A separate policy can cover a single shipment, while regular shipments can be arranged under a master agreement using declarations.

Three coverage options are available:

1. All-risks cover — the broadest protection, subject to the exclusions in the contract.
2. With-average cover — a list of agreed events such as fire, explosion, collision, natural hazards and water ingress.
3. Free of particular average, except in cases of catastrophe — narrower protection for major transport accidents.

Depending on the contract, cover for destruction, loss, shortage or damage may be accompanied by reimbursement of reasonable costs incurred to save the cargo, reduce the loss and establish its amount.

There is no single fixed rate. The calculation depends on the type and value of the cargo, packaging, route, mode of transport, carrier, selected coverage and deductible. The precise terms are recorded in the individual insurance contract.

To protect the goods themselves, request an individual cargo insurance quotation. If you operate as a forwarder or carrier and need to manage third-party exposure, review liability insurance separately.

Pre-shipment checklist

Before signing the contract

1. Who bears the risk? Use the sale terms to determine whether it is the seller, buyer or another party.
2. Who are the policyholder and beneficiary? Make sure the parties with a financial interest in the cargo are identified correctly.
3. Is the sum insured sufficient? Check the shipment value, freight costs and any other agreed expenses.
4. Is the full route declared? Include interim warehouses, transshipment, changes of transport and border points.
5. Is the coverage option suitable? Choose between all risks, with average and narrower cover according to the cargo's characteristics.

Before departure and in case of an incident

1. Have the exclusions been reviewed? Inadequate packaging, natural loss and wear, delay, known unfitness of the transport, war and nuclear risks are excluded under the standard wording.
2. Is the deductible understood? Calculate in advance how much of a loss the business will retain.
3. Is the CMR note or another transport document complete? State the cargo description, gross weight, packaging and any carrier reservations accurately.
4. Is there an incident procedure? The contract should specify whom to notify, within what time and with which documents.
5. Is the claim against the carrier preserved? Record the damage with photographs, a survey or report and written notice.

If the documents use terms such as “cargo insurance,” “insurance declaration” or “MPL,” clarify them before signing.

Conclusion

The right question is not “which policy is better?” Ask instead: whose interest is protected, against which event and for what amount if the cargo is damaged? For a valuable shipment or a complex route, cargo insurance and carrier liability work side by side. Neither replaces the other.