Carrier's civil liability (CMR) insurance

CMR insurance indemnifies the customer against loss, damage or late delivery of your cargo due to the fault of the carrier. The protection is valid for international transports according to the CMR convention and for transports in Lithuania according to the Road Transport Code.

Who is this insurance relevant for?

CMR insurance is not mandatory in Lithuania — the requirement from the Road Transport Code was abolished in 2002. However, in practice, it is required by the customers and forwarders themselves: a copy of a valid insurance certificate is often a necessary condition for receiving an order.

Relevant if your company

carries out international transport operations in accordance with the CMR Convention
transports cargo within the territory of Lithuania
performs cabotage operations in other countries
works with freight-finding portals or freight forwarding companies
uses its own or a leased vehicle fleet
sometimes acts as a second or subsequent carrier

Probably not relevant if

you carry out only freight forwarding activities without owning your own transport — in that case, freight forwarder’s civil liability insurance is required
You are the cargo owner, not the carrier — cargo insurance is relevant to you.
you transport only your company’s own cargo for your own needs, without a contract of carriage for remuneration

What does CMR insurance cover?

The insurance covers losses for which you, as the carrier, are liable: loss of or damage to the cargo and failure to meet delivery deadlines. Costs associated with cargo salvage and legal defense are also covered.

Standard protection

Damage to, destruction of, or loss of cargo during carriage
Financial losses incurred by the sender or recipient due to the improper performance of the contract of carriage.
Breach of delivery deadline
Damage to third parties caused by transported cargo
Cargo salvage, forced destruction and removal costs
Legal defense and damage assessment costs

Expanded separately

Gross Negligence
Cabotage with an increased limit — up to 40 SDR per kilogram
Entrusted property — containers, trailers, semi-trailers, refrigerators
Freight forwarding activities
Drivers’ personal belongings and clothing

Why does CMR insurance not always cover the full extent of the damage?

This is the most important thing to understand about this product. Two limits apply. First, the payout is made only when the carrier is liable for the damage. Second, even if the carrier is at fault, compensation is limited based on the cargo’s weight, not its value.

8.33 SDR per kilogram—what this means in practice. Article 23 of the CMR Convention limits compensation to 8.33 units of account per kilogram of gross weight missing. With the SDR exchange rate hovering around €1.20, this amounts to approximately €10 per kilogram.

Example: A shipment of electronics weighing 400 kg and valued at €30,000. In the event of a total loss of the cargo, compensation under the convention would amount to approximately €4,000. The remainder is borne by the cargo owner.

The same logic applies to pharmaceuticals, cosmetics, spare parts, and branded clothing—to all lightweight, high-value cargo. For heavy, low-value goods (such as construction materials or grain), this limit rarely becomes an issue.

Not included in the coverage

Fines, late payment interest, and contractual penalties
Lost income
Failure by the customer to pay for the carriage
Transporting by vehicle without a valid licence card
Transportation by a technically unserviceable vehicle
Gross negligence without a separate supplement
Extended liability based on a declaration of value without a separate agreement

Covered by separate products

Cargo value exceeding the liability limit → cargo insurance
Damage where the carrier is not at fault → cargo insurance
Damage to your vehicles → corporate vehicle insurance
Harm to the driver’s health → employer’s civil liability

Therefore, carriers transporting high-value cargo often offer the client separate cargo insurance—or purchase it themselves and include it in the transportation cost.

What determines the cost of CMR insurance?

As a rough estimate, the average CMR insurance premium in Lithuania is around €360 per vehicle per year. However, actual rates can vary significantly between companies, so the exact price is determined only after assessing the specific details of your operations.

Size and type of the vehicle fleet. Tractor units, semi-trailers, and refrigerated trailers are valued differently.
Route geography. Transport operations within and outside the EU are treated differently; some routes may be restricted.
Types of transported cargo. Excise goods, electronics, pharmaceuticals, and tobacco products are subject to the strictest scrutiny.
Drivers’ age and experience. Distribution by seniority and change over the past 12 months is assessed.
Control systems. GPS tracking, tachograph analysis, and the monitoring of driving discipline improve conditions.
Claims history. Vertinami paskutiniai penkeri metai — tiek įvykių skaičius, tiek sumos.
Type of contract. Working through freight-finding portals is considered riskier than long-term contracts with manufacturing or trading companies.
In-house service facility and terminal. Demonstrates more mature risk management.
Selected limits and deductible.

What to decide before taking out insurance

A CMR policy combines several separate limits. The actual value of the coverage depends on these limits and the chosen extensions.

Liability for the transported cargo. The principal limit usually starts at €300,000.
Extension of gross negligence. In practice, this is the most important endorsement—without it, some actual events remain uninsured.
Expansion of cabotage. Required if you carry out cabotage operations in countries with a higher national limit.
Damage to third parties. A separate limit, usually around €50,000.
Entrusted property. Containers and semi-trailers transferred to you for temporary use — about €25,000.
Legal expenses. Usually around €2,000.
Activity as a second carrier. If such a situation arises, it must be declared.
Deduction. A higher one lowers the premium, but you will cover minor claims yourself.

Compare the terms, not just the price. Unlike motor third-party liability insurance, legislation does not prescribe standard terms for CMR insurance. Consequently, insurance products differ not only in price but also in substance—regarding the list of excluded events, conditions that trigger a reduction in the payout if breached, and the scope of risk assumed. The cheapest offer may be the cheapest precisely because of what it omits.

What you will need to fill out the questionnaire

We will retrieve the company name, address, and NACE code from the Centre of Registers—you simply need to enter the company code. It is useful to have the following ready in advance:

List of vehicles — make, license plate number, year of manufacture, load capacity
Percentage distribution of transported cargo types
Percentage distribution of routes
Number of drivers by driving experience and age group, and changes over a 12-month period.
Control systems used — tracking equipment, tachographs.
Breakdown of contract types: portals, one-off and long-term freight forwarding contracts, and contracts with manufacturing or trading companies.
CMR claims over the past five years — amounts, number of incidents, and time periods.
Existing insurers — MTPL, Casco, and CMR

The questionnaire takes about 10–12 minutes to complete, as data regarding the vehicle fleet and distribution is entered into tables. Fields that are unclear can be left blank—the broker will clarify them.

Frequently Asked Questions

Is CMR insurance mandatory?

No. The requirement under the Road Transport Code was abolished in 2002, making this a voluntary type of insurance. However, in practice, clients and freight forwarders themselves require a copy of a valid insurance certificate—without it, you often simply will not get the order.

What is the difference between CMR insurance and cargo insurance?

CMR insurance covers your liability as a carrier: a payout is made only when the carrier is liable for the damage, and it does not exceed the limit established by the convention. Cargo insurance covers the cargo itself for the benefit of its owner—the actual value is compensated regardless of who is at fault.

What does 8.33 SDR per kilogram mean?

Article 23 of the CMR Convention limits compensation to 8.33 units of account per kilogram of gross weight missing. The SDR exchange rate is determined by the International Monetary Fund; with the rate hovering around €1.20, the limit amounts to approximately €10 per kilogram. Gross weight is calculated inclusive of packaging.

Does the ban apply to cabotage operations?

Yes, but the limit is important. In some countries—such as Germany, France, and Belgium—the national liability limit is 40 SDR per kilogram, almost five times higher than under the convention. A standard policy may limit liability to 8.33 SDR, so a separate extension is required.

What is gross negligence and why is it important?

This is a condition on the basis of which insurers usually refuse to pay a benefit. It is not included in standard coverage, but many insurers offer Gross Negligence coverage for an additional premium. This is one of the most important questions when comparing offers.

Does the coverage apply when I act as a second carrier?

Not automatically. If you take over loads from another carrier or engage sub-carriers yourself, you must indicate this in the questionnaire. Some insurers restrict this activity or assess it separately.

Does CMR insurance cover freight forwarding activities?

Not by default—freight forwarder’s liability is a separate type of insurance. If you carry out both transport and freight forwarding activities, the coverage can be combined, but this must be clearly stated in the policy.

Within what timeframe must the incident be reported?

Deadlines vary by insurer, but typically the incident must be reported in writing within a few working days of becoming aware of it. You can find the exact deadline in your policy terms and conditions; missing it may result in a reduced payout or a refusal to pay the claim.

Related insurance products

CMR covers your liability within the limits established by the convention. These products cover what falls outside its scope.

Cargo insurance

Compensates for the actual value of the cargo, regardless of fault.

Corporate vehicle insurance

Comprehensive (KASKO) and civil liability coverage for your tractor units and semi-trailers.

Employer's civil liability

Injury to the health of a driver or other employee in the event of an accident

Insure carrier liability.

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