CMR  Insurance Cover

C M R Insurance Cover

Goods in transit insurance cover specifically associated with the CMR contract is important, although it will normally attract a higher premium. It is not mandatory under the convention but an international road haulier would be unwise to ignore the risks and legal liabilities for payment of compensation in the event of loss of or damage to goods in transit and forego adequate insurance cover.

The SDR is an international reserve asset, the value of which is based on a basket of five major currencies — the US dollar, the euro, the Chinese renminbi (RMB), the Japanese yen, and the British pound sterling. The value in terms of the US dollar is calculated daily by the International Monetary Fund (IMF) and published on the IMF’s website.

Actual liabilities can vary from day to day depending on the strength of the various currencies against the dollar on the international money markets and it is essential to seek adequate sterling insurance cover against fluctuations.

On 17 December 2020, the SDR had a sterling value of £1.07. This figure at current rates represents a 1000kg load value of: £1.07 x 8.33 units of SDR x 1000kg = £8931 per tonne. This figure is considerably above the normal goods in transit insurance value for loads in UK domestic transport, which is approximately £1300 per tonne (the present Road Haulage Association standard). The SDR exchange rates may be found in the financial press and through the internet on currency conversion websites.


All Risks Coverage — property insurance covering loss arising from any fortuitous cause except those that are specifically excluded. This is in contrast to named perils coverage, which applies only to loss arising out of causes that are listed as covered. Although many industry practitioners continue to use the term “all risks” to describe this approach to defining covered causes of loss in a property insurance policy, it is no longer used in insurance policies because of concern that the word “all” suggests coverage that is broader than it actually is.

Because of this concern, some industry practitioners have begun to use the term “open perils” or “special perils” instead of “all risks.”