• Compulsory motor insurance covers only the statutory elements; transport businesses face many additional operational risks.
• Operators should balance the cost of insurance against the genuine likelihood and potential severity of losses.
• It is possible to spend too much on cover for extremely unlikely events.
• Insurance should therefore be selected to provide appropriate protection at a reasonable cost.

4.1 FIRE AND THEFT INSURANCE

• Basic third-party motor insurance does not automatically cover vehicle theft or fire damage.
• Fire and theft cover are voluntary additional insurances.
• The source recommends that operators insure against these risks.

4.2 DAMAGE TO PUBLIC HIGHWAYS INSURANCE

• This covers damage caused to roads, bridges and similar infrastructure by vehicle/load weight.
• Operators must consider bridge and route weight restrictions when planning journeys.
• Abnormal indivisible loads are particularly relevant because of their potential to damage roads and bridges.
• Notice must be given to highways and bridge authorities before a Special Types movement.
• The source states that 2 days' notice is required where total vehicle and load weight does not exceed 80,000 kg.
• Where total weight exceeds 80,000 kg, 5 days' notice is required.
• The statutory notice indemnifies the authorities against damage caused by the movement.
• Authorities are allowed up to 12 months to make a claim because some damage may become apparent later.

4.3 GOODS IN TRANSIT INSURANCE

• There is no legal obligation on operators to insure customers' goods against loss or damage while in their care.
• The source strongly recommends goods-in-transit cover because a major claim could seriously affect an uninsured business.
• The level of cover should match the operator's conditions of carriage and potential liabilities.
• Cover should be reviewed regularly.
• If a customer requests higher cover than normal, the operator should consult the insurer.
• If the higher risk is accepted, an additional charge can be considered to recover the extra insurance cost.
• Common restrictive clauses include:
• Immobiliser clause – requires an approved anti-theft device to be fitted, maintained and used when a loaded vehicle is left unattended.
• Night risk clause – theft from an unattended vehicle at night may be excluded unless the required security/parking conditions are met.
• Excluded goods clause – certain high-value or dangerous goods may be excluded.
• Excess clause – the policyholder pays the first agreed amount of each claim.

4.4 CMR INSURANCE

• CMR is the commonly used abbreviation for the international road-carriage convention described in the source.
• CMR generally applies to international hire-and-reward road haulage.
• The source identifies exclusions including postal movements, funeral consignments and furniture removals.
• International ISO freight containers are treated as goods rather than vehicles for this purpose and are excluded as described in the source.
• Movements between the UK and the Republic of Ireland are specifically excluded from CMR under the source material.
• CMR liabilities can be substantially higher than those normally applying to domestic UK transport.
• International operators should therefore arrange goods-in-transit insurance appropriate to potential CMR liabilities.
• A UK operator can become involved in CMR without realising it – for example, by carrying a semi-trailer that has arrived in Dover from France and completing the final UK leg.
• This is often called 'unwitting CMR'.
• A CMR consignment note confirms the contract of carriage and must be completed for goods carried under the Convention.
• The IRU has prepared a model CMR consignment note.

CMR CLAIMS AND LIABILITY

• First establish whether CMR applies; normally an official CMR consignment note is a useful indicator, although absence of a note does not necessarily prove that CMR does not apply.
• For apparent damage, the consignee must lodge a written claim immediately at delivery.
• For damage that is not immediately apparent, written notice must be given within 7 days, according to the source.
• For loss or damage, the value of the consignment is assessed at the time and place of loading.
• The source states a liability limit of 8.33 Special Drawing Rights (SDRs) per kg.
• The source gives an approximate equivalent of £9,000 per tonne, compared with a usual domestic RHA limit of £1,300 per tonne under the cited conditions.
• Example in the source: 5,000 kg × 8.33 SDRs × £1.10 = £45,815 maximum calculated liability.
• Compensation cannot exceed the value of the goods lost/damaged plus carriage costs; the lesser applicable amount is used.
• Partial loss is compensated on a pro-rata basis.
• A consignment is treated as lost if not delivered within 30 days of the agreed delivery date.
• Where no delivery date was agreed, the source states that it is considered lost after 60 days from collection.
• A claim for delay requires a written reservation to the carrier within 21 days from when the goods were placed at the consignee's disposal.
• For delay, compensation cannot exceed the carriage costs.
• CMR defences include inadequate packing by the consignor, incorrect handling by consignor/consignee, inherent vice such as decay or rust, and an expressly agreed open unsheeted vehicle.
• Where successive carriers are involved, each carrier is liable for loss/damage while the goods are in their possession.
• At each changeover, the next carrier should check the load and record any loss/damage in the reservations section of the CMR note.
• Signing the note and accepting the goods are significant because liability passes to the next carrier at that point.
• If responsibility cannot be established between successive carriers, each carrier contributes in proportion to its share of the carriage charges.

4.5 CREW MEMBER INSURANCE FOR INTERNATIONAL OPERATIONS

• The source describes reciprocal arrangements with EU countries for free or low-cost medical treatment for visitors.
• UK visitors should carry an EHIC or, when applicable, a GHIC.
• The source states that the card is obtained from the Department for Health and is valid for renewable periods of 5 years.
• EHIC/GHIC treatment covers medically necessary treatment until the planned return journey.
• Treatment is provided on the same basis as for a resident of the country.
• The source states that pre-existing medical conditions and routine maternity care can also be covered where the visit is not specifically for those purposes.
• EHIC/GHIC cover is not unlimited.
• It is unlikely to cover costs such as air-ambulance repatriation or a replacement driver.
• Operators should seriously consider private medical insurance for staff travelling abroad.
• Private cover can include medical treatment and repatriation costs.

4.6 MARINE INSURANCE

• Maritime law can limit shipping-line liability for loss or damage to vehicles or loads while at sea.
• Operators are therefore advised to obtain additional marine insurance for this risk.