Safe CMR
Cobranded Safety Broker and Gothaer CMR product.
Below is a presentation of what Safe CMR means, who it is aimed at, the newness elements, liability limitations, and the competition advantages of this product.
WHAT DOES SAFE CMR PROVIDE?
Safe CMR covers the liability of the Insured, as a carrier, for road transported goods by the vehicles included in the Insurance Contract, and undertaken as per the CMR Convention provisions, triggered as a result of some Insured Events occurring during the Insurance time.
The Product is divided into two main sections: CMR, which means the carrier’s liability as part of international traffic, and RTR – the carrier’s liability in the domestic traffic. Additionally, Safe CMR may also ensure the following:
- Saving Expenses, expenses for limiting and preventing damages;
-Expenses with the destruction of the damaged goods;
- Legal expenses with the Insureds’ prior approval.
WHO DOES THE PRODUCT AIM AT?
The product is mainly “CORPORATE”, and it aims at carriers with no less than 10-vehicle fleets. It can be sold to both domestic and international carriers.
Gothaer’s Car Underwriting Department handles the supply and issuance of such policies.
WHICH ARE THE NEW ELEMENTS WHICH SAFE CMR BRINGS?
In addition to the Classic clauses included in most CMR type policies, SAFE CMR brings the following new items:
The COAST-NAVIGATION clause – insures domestic transport made by the Insured between two localities of the same EC Member State.
The CONTAINER clause – which assimilates the goods container, and under which compensation is paid for material damages to the container (total or partial deficiency). Otherwise, the container cannot be compensated, because it is not goods; thus, the Carrier will be forced to bear the damages incurred for its default. This clause does not insure refrigerating containers.
The “ANONYMOUS” SEMI-TRAILER clause - compensation is paid for material damages incurred to the pulled trailer or semi-trailer directly following a traffic event, resulting from a road accident occurring for the Insured’s fault.
The HANDLING clause under which directly occurring material damages against the carried goods as a result of handling operations (loading, unloading, handling, storing, anchoring) thereof are compensated when such operations are performed by the Insured’s officials in charge.
THE FOLLOWING ARE THE LIABILITY LIMITATIONS:
In case of deficiencies, in the case of transportation, the upper limit is EUR 600,000 per events; in the case of aggregates (i.e. the entire car fleet and the entire insured time), it ranges from EUR 1 million to EUR 3.5 million.
The limits of liability in the case of Special Clauses range from EUR 5,000 to EUR 15,000 depending on the respective clause.
COMPETITION ADVANTAGES OF SAFE CMR
In addition to the clarity and easy presentation of the product, it has a series of advantages and unique benefits in the insurance market. We could even say that it is the most complete CMR product.
The coast-navigation clause is one of the biggest competition advantages, as it is the only clause offering the increase of the liability limit on the EU territory to 20DST/KG of damaged goods and even 40DST/KG, in Germany.
Also, the Container clause is another competitive indicator conferring unicity to the Safe CMR product; no other CMR product currently includes this Clause.
The Handling clause is another advantage; it can be encountered in other CMR products as well, but it is an exceptional waiver, while in the Safe CMR case, it is part of the standard product and its granting needs no additional approval.
The clause additionally differentiating the SAFE CMR product from other products is the “self-ascertainment”clause up to EUR 1,500.
Also, we deem SAFE CMR to be the only competitive product Insurance Premium-wise, given that, like the products on the European market, it assesses the Insure’s turnover, instead of each individual goods transportation unit.
Catalin Chiriac
Safety Broker CEO Councilor
