Insurance man issues warnings
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• Mr Alan Donald, of Ernest A. Notcutt and Co Ltd, insurance brokers, addressed the RHA International Group in London last week on insurance aspects of CMR. He said that, while there is no legal obligation for an international haulier to hold CMR insurance, he considered it was extremely desirable.
Mr Donald pointed out that goods carried in a container across frontiers, but not on a road vehicle, were not subject to CMR.
Members were concerned that on occasions international loads were insured twice or perhaps three times; once by the main contractor, then by a sub-contractor and by the consignor. Mr Donald suggested that this was something which should be settled by the haulier's insurance broker before the consignment was dispatched.
He warned that if an insurance policy carried an "unattended vehicle" exclusion it should be made clear that it did not apply if the vehicle was out of the custody of the carrier.
The operators were advised that any limit of insurance per ton should be resisted and that the limit on a vehicle should be the maximum carrying capacity of the vehicle multiplied by the maximum liability of £3500 to which should be added carriage charges and Customs duties.
He gave a warning to those who advertised their services that they should not use the phrase "CMR cover all goods fully insured". Because of certain exclusions this statement would seldom be true.