What is a driver’s (carrier’s) liability insurance?

Legislation regulates in which situations the driver cannot be relieved of liability for damages incurred during the carriage of goods, and for which the driver or the person who worked at driver’s order (subcarrier) is responsible.

Depending on the type of vehicle, and the distances and regulations based on which the professional activity of the carrier is regulated, there are several types of insurance, namely:

• liability insurance of road carriers in domestic transport,
• liability insurance of road carriers in international transport (CMR),
• insurance of shippers in inland navigation in domestic transport,
• insurance of shippers in inland navigation in international transport.

Carrier Liability Insurance (CMR) covers only claims for the proven subjective liability of the carrier (carrier) under the international CMR Convention on Road Transport. When insuring a driver’s liability under the CMR Convention, insurance companies appreciate and consider all the facts and circumstances surrounding an adverse event when deciding on their entitlement. This means that this insurance is not an automatic mechanism for recognizing the damage caused to the goods, but that the owner of the goods has the obligation to prove the possible liability of the driver, in the event of damage to the shipment or loss in road transport.

What risks are covered?

This policy ensures the liability of the insured as a carrier for the proven damages arising from the transport of consignments of goods (items), due to the realization of any of the following risks:

• Damage to goods
• Burglary, robbery or theft of the entire vehicle with goods
• Delays in delivery of goods

In addition to the above, this policy covers the costs of court disputes and undertaken legal measures with regard to claims with the aim of defense against unfounded or excessive claims of transport users.

Also, this policy covers the costs of unloading, reloading, or loading, if any, onto a different vehicle, if the original vehicle was involved a traffic accident, with the purpose of avoiding further damage to goods (items) or reducing damage that had already occurred to the transported goods.

The coverage includes costs of removing and transporting the residues of destroyed goods, in order to clear the road at the order of the competent authorities, as well as costs of determining the cause, volume, and amount of damage.