Marine Insurance Case Study

Cargo lost during transport: Breaking CMR liability limit

timing

3 months

type of recovery

amicable

loss ratio

37%

loss amount

22.000 EUR

countries involved

Spain, Sweden

The products and clients involved

Shipping from Sweden to Spain. The type of cargo was
hairdressing supplies, and it was duly insured. Despite all efforts, it was impossible to determine the cargo whereabouts.

The incident

Cargo lost during transport. Probably in one of the warehouses.

The challenges we faced

  • Carrier’s liability was limited to 4.000 EUR (which was an 18% of the total loss) given cargo weight, and there were no clear-cut evidence of carrier wilful misconduct. 
  • In addition, the event occurred in the beginnings of COVID situation and its anomalous circumstances.

Conclusions

Although the circumstances did not point to a clear-cut negligence from the carrier, and the jurisprudence is not unanimous in these types of cases, through negotiation, we have managed to break the limit and to settle the case for a higher amount (a 200% of the CMR limit).

Therefore, having broken the CMR limitation and doubled its amount is a undoubted success. With this amicable solution we have managed to recover a 37% of the loss, in a very short time and without the costs, uncertainty and tardiness inherent to a lawsuit.

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