Industries Transport & Logistics Ecclesia Group

CMR insurance confirmations

According to Art. 3 CMR, the main carrier is liable for the acts and omissions of its subcontractors, among others. This can become problematic in the event of major damage (e.g. truck theft, fire, traffic accident with total loss), especially if the injured party claims gross negligence, which leads to the elimination of all liability limitations and to high claims.

A diligent main carrier (or fixed-cost carrier) will take out subsidiary insurance for these cases, as he is liable to the client. Finally, it is questionable whether the sub-carrier is sufficiently solvent to pay a major loss.

For this reason, so-called insurance certificates are repeatedly obtained from carriers to provide information on insurance cover.

But the problems are in the details! Art. 29 CMR (gross negligence) is often not included in the insurance. This is not specifically mentioned in insurance confirmations.

In some cases, there are also formulations such as the following: "We hereby confirm that company XY has taken out CMR insurance cover through us up to a maximum liability sum of EUR 500,000. The liability arising from the provision of Art. 29 CMR is also insured within the limits of liability according to Art. 23 points 1 to 5 CMR."

This is the typical case of "seeming to be more than is". Although a maximum liability sum of the insurer of EUR 500,000 is confirmed, it is stated on the other hand that the liability according to Art. 29 CMR is co-insured, but only within the liability limits according to Art. 23. This means that even in the case of Art. 29 CMR, only a maximum of 8.33 special drawing rights per kg are compensated, for 20 tons currently around 20,000 kg x EUR 10 = EUR 200,000. The reference to EUR 500,000.00 is therefore a mirror image and therefore worthless.

The situation is different with Lutz Assekuranz, where the limit of compensation in cases of Art. 29 CMR is actually EUR 1 million.

For these reasons, it is important not only to compare the price of insurance products! Saving EUR 300 per year on premiums can mean that EUR 300,000 in the event of a claim must be borne by the carrier himself, as gross negligence (the case law is becoming increasingly strict!) is not covered.

So be careful with insurance confirmations! It is also advisable to check your own policy and seek expert advice if necessary. The Lutz Assekuranz team will of course be happy to provide further information at any time.