Goods insurance

Every haulier and freight forwarder wants the goods entrusted to it to reach the destination intact and undamaged and on time. Unfortunately it doesn’t always go as planned so hauliers have brought insurance providers on board to hedge the risks that arise en route.

Haulier’s liability insurance /CMR insurance:

The haulier’s liability covers only damage occurring due to the fault or gross negligence of the haulier. The haulier is not liable for losses incurred due to circumstances beyond the control of the transporter (such as theft).

If the value of the goods exceeds the haulier’s liability limit (8.33 SDR per gross kg) and the consigner of the goods desires insurance coverage even if the haulier is not liable for the damage, it is advisable to take out a full freight insurance policy.

Full freight insurance:

Täisveosekindlustus is available for one-time transport or as an open policy for a specific timer period (e.g. a year) for transport of all loads during this time, which could work out to being more favourable for the customer.

In general, transport insurance does not cover on and off loading of goods, which means that the coverage starts when the consignment starts moving and continues until it reaches the destination or the place specified in the policy.

It should be taken into consideration in the case of both transport insurance and the haulier that the insurance company and haulier are not liable for damage if the packaging is unsuitable for freight transport. The (un)suitability of the packaging is the cause of many a dispute and the solution always depends on the specific case.

A risk borne by the consignor is also the possibility of the goods being damaged due to intrinsic characteristics of the goods (such as evaporation) or force majeure.

If damage occurs to goods, you as the recipient or consignor should protect your interests immediately as soon as the damage or defect is discovered. You should always receive a claims adjuster’s consent for selling or destroying the goods before you give any orders regarding damaged goods.

Visible damage

  1. Always check the outward condition of the goods and the number of packages immediately upon receiving the goods.
  2. Mark down any suspicions on the delivery note, describing in detail the (visible) damage or defect. If possible, photograph the damage.
  3. Phone the haulier immediately and report the damage or defect to the haulier.
  4. Send an email or letter in which you declare that you hold the haulier liable. Describe concisely the damage or defect and the financial consequences thereof. Where possible, attach photos.
  5. Once you have arrived at an estimate of the damage, you must send a claim to your ordinary contact person or claims adjuster, appending copies of a commercial invoice, signed delivery note and packaging insert, if there is one, or other documents that support the claim.

Non-visible damage

  1. Inspect the goods immediately upon receiving.
  2. Send a letter or email within 3 days to your ordinary contact person or claims adjuster, explaining the damage or defect in as much detail as possible. if possible, attach a photo. The obligation to prove that the damage or destruction of the goods took place during the insurance period/transport rests with the person filing the claim.
  3. From that point on, you should follow the same steps described under “visible damage”. We draw your attention to the fact that the deadlines for filing claims for damage vary for different types of transport and can be relatively short.
  • Road transport, railway: 7 days
  • Sea transport: 3 days
  • Air transport: 14 days

Compensation requirements must be sent to the address: krista@linford.ee

The laws of the Republic of Estonia (including the Law of Obligations Act), the general terms and conditions of the Estonian Logistics and Freight Forwarding Association, (https://www.elea.ee/elea-uldtingimused-2015) and the Covention on the Contract for the International Carriage of Goods by Road, which among other things limit the haulier’s liability, shall govern the resolution of liability issues.

Linford Transport OÜ’s insurance partners:

IF KINDLUSTUS www.if.ee
ERGO Kindlustus: www.ergo.ee