CMR Insurance: What You Need to Know

What Is the CMR Convention?

The CMR Convention (Convention relative au contrat de transport international de Marchandises par Route) is an international agreement governing the conditions of the transport contract in international road freight transport. It was signed in Geneva in 1956 and is in force in most European countries. The Convention establishes the rights and obligations of the consignor, carrier, and consignee, and defines the carrier's liability for damage to transported goods.

When Does the CMR Apply?

The CMR Convention applies automatically to every transport contract where the place of loading and the place of unloading are in two different states, at least one of which is a signatory to the Convention. This covers virtually all transport within Europe: whether on routes to Germany or France.

Carrier Liability Under the CMR

The carrier is liable for total or partial loss of goods and for damage occurring between the moment the goods are accepted for transport and the moment they are delivered to the consignee. The carrier is also liable for exceeding the delivery deadline; compensation for delay is capped at the amount of the freight charge.

Liability Limits

A key aspect of the CMR Convention is the limitation on the amount of compensation. The maximum compensation is set at 8.33 SDR per kilogram of gross weight of lost or damaged goods (SDR-Special Drawing Rights of the International Monetary Fund). In practice, this amounts to approximately EUR 10-11 per kilogram at the exchange rate of October 2026; the rate changes, so the figure is only a guide.

For high-value, low-weight goods (electronics, pharmaceuticals, fashion goods), this limit is often insufficient. It is therefore important to consider supplementary insurance.

Circumstances Excluding Liability

The carrier may be exempted from liability if they can prove that the damage was caused by:

• Fault of the claimant (consignor or consignee)
• Inherent vice of the goods (natural loss, perishability)
• Circumstances that could not be averted (force majeure)
• Defective packaging by the consignor
• Handling of open vehicles as agreed with the consignor

Types of Insurance in Transport

Carrier Liability Insurance

This insurance covers the carrier's liability for damage to transported goods under the CMR Convention. It is the standard insurance for carriers operating international FTL transport or LTL transport. The premium depends on the type of transport, the value of the goods being carried, and the geographic coverage.

Cargo Insurance (Goods Insurance)

Unlike liability insurance, cargo insurance covers the value of the shipment itself regardless of who caused the damage. It is particularly suitable for consignors of high-value goods where the CMR limit would not cover the actual loss.

Declared Value Insurance

The CMR Convention allows a so-called declared value to be stated in the consignment note. In that case, the 8.33 SDR/kg limit does not apply and the carrier is liable up to the declared value. The carrier charges a surcharge for this increased liability.

How to Proceed Correctly in Case of Damage

1. Immediate notification: the consignee must raise reservations upon receipt of the goods (visible damage) or within 7 days of delivery, Sundays and public holidays excluded (hidden damage)
2. Documentation: photograph the damage and prepare a damage report
3. Notify the insurer: report the claim without undue delay
4. Preserve evidence: do not dispose of damaged goods or packaging materials until the claim is resolved
5. Claim in time: claims against the carrier are time-barred after one year, or three years in the case of wilful misconduct

Conclusion

CMR insurance is an essential component of international road transport. Understanding the liability limits under the CMR Convention and choosing the right coverage protects both carriers and consignors. The carrier's liability is insured under CMR; cargo insurance is offered on request.

Contact us for a consultation on insuring your shipment.