CMR Insurance Explained: What It Covers, What It Doesn't, and Who Needs It

CMR insurance is the carrier's liability insurance for international road freight. It covers the carrier's legal responsibility if your goods are lost, damaged or delivered late, but the Convention caps what you can claim at 8.33 SDR per kg of gross weight (roughly €10/kg). If your cargo is worth more than that, you'll want extra cover.

Here's what that means in practice, and how to pick the right protection.

What Is CMR Insurance? (Meaning)

CMR stands for Convention relative au contrat de transport international de Marchandises par Route, the convention signed in Geneva in 1956 that sets the rules for international road freight. It applies to carriage by road for payment between two different countries, where at least one is a CMR country. Domestic transport follows national law, which can have different limits.

CMR insurance covers the carrier's liability under that convention.

CMR Insurance vs Cargo Insurance: What's the Difference?

• CMR insurance: Bought by the carrier. Covers the carrier's legal liability under the CMR Convention. Payout is capped per kg, and only applies if the carrier is actually liable.
• Cargo insurance (goods in transit): Can be bought by the cargo owner. Covers the goods themselves, with the cover and limits set by the policy, and doesn't depend on the carrier being liable.

Think of it this way: CMR insurance protects the carrier from the claim, cargo insurance protects you from the loss.

CMR Coverage: When Is the Carrier Liable?

Under the Convention, the carrier is responsible for the goods from the moment it takes them over until delivery, and is liable for:

• Loss of goods: Total or partial. You're paid the value of the goods at the place and time they were taken over, up to the cap. Carriage charges and customs duties are refunded too (in full for total loss, proportionally for partial loss).
• Damage to goods: The carrier pays for the loss in value.
• Delay: You have to prove the delay caused you damage, and compensation can't exceed the carriage charges.

What your insurer actually pays out depends on the policy, so always check the wording.

CMR Liability Limit: 8.33 SDR per Kilogram

Under Article 23 of the CMR Convention, compensation for lost goods can't exceed 8.33 SDR per kg of gross weight of the missing goods (set by the 1978 Protocol). SDR (Special Drawing Rights) is an IMF unit, so the euro value changes daily. Check today's rate on the IMF website.

Rough example: at the late-September 2026 rate (about €1.20 per SDR), the cap is around €10 per kg, so a full 24 t load is capped at roughly €240,000. That can be far below the real value of electronics, pharma or machinery.

Two ways around the cap:

• Declare a higher value: Article 24 lets the sender declare a higher value in the CMR consignment note, for a surcharge agreed with the carrier. That amount then replaces the cap.
• Buy cargo insurance: Cover the full value of your goods yourself.

The cap also doesn't apply if the damage was caused by the carrier's wilful misconduct (Article 29). And carriers can't write terms into their contracts that push liability below the Convention's level (Article 41).

When Can the Carrier Avoid Liability?

The carrier has to prove it (Article 18). The grounds include:

• Sender's fault or instructions: Damage caused by the claimant's own act or neglect, or by their instructions.
• Goods' own defects: Inherent vice of the goods.
• Unavoidable circumstances: Events the carrier couldn't avoid and couldn't prevent.
• Special risks: Things like defective packing, loading or unloading by the sender, or carriage in open, unsheeted vehicles, when agreed.

Who Needs What?

• Carriers: The Convention doesn't itself require carriers to be insured, but check national rules and your customers' contract terms.
• Shippers: Ask for the carrier's CMR insurance details and compare the limit to your cargo's value. For high-value cargo, declare a higher value or add cargo insurance.
• Forwarders: Check both your own liability cover and your carriers' cover.

CMR Claims: 4 Quick Checks

• Ask for the insurance details: Make sure the carrier's policy is valid and covers your type of cargo.
• Compare value vs. limit: Is your cargo worth more than 8.33 SDR per kg?
• Document everything: A correct CMR note and a clear record of the goods' condition at pickup and delivery make CMR claims much easier.
• Act fast: Note any damage at delivery (Article 30 sets short deadlines for reservations) and send a written claim. For most claims the deadline is one year, usually counted from delivery, and three years for wilful misconduct. A written claim pauses the clock until the carrier rejects it in writing (Article 32).

FAQ

• What is CMR insurance? It's the carrier's liability insurance for international road freight, covering claims under the CMR Convention.
• What does CMR cover? The carrier's liability for loss, damage and delay, up to 8.33 SDR per kg unless a higher value is declared. Delay compensation is limited to the carriage charges.
• Is CMR insurance mandatory? The CMR Convention itself doesn't require it, but national rules or customer contracts might.
• Does CMR insurance cover the full value of my goods? Not necessarily. You're paid the value of the goods up to the cap, so high-value cargo needs a declared value or cargo insurance.
• What's the difference between CMR insurance and cargo insurance? CMR insurance covers the carrier's liability, while cargo insurance covers the goods for their owner.
• How long do I have to file a CMR claim? Generally one year, or three years in cases of wilful misconduct. Written claims pause the clock.

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