Is CMR insurance truly mandatory in Europe?

When we talk about transport and insurance coverage, for international road transport, it is often a key question, and the answer has an important nuance: the CMR Convention does not directly oblige the carrier to take out an insurance policy, but rather establishes their legal liability for the transport service they are carrying out, as contracted by the shipper.

However, in practice, CMR insurance is commercially mandatory for any carrier operating in Europe. No transport company would assume the risk of a claim for damage or loss without a policy covering their legal liability. Therefore, if you contract an international carrier, you can assume they have this insurance, although it is always prudent to confirm this point.

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The carrier's liability: the basis of CMR insurance

The CMR Convention states that the carrier is liable for loss, damage, or delay of goods from the moment they are received until they are delivered. This liability is what CMR insurance covers on a mandatory basis, as reflected in the convention itself.

But the existence of an obligation to provide coverage does not mean that it is unlimited. The very same CMR Convention establishes a maximum limit.

Indemnity Limit: 8.33 SDR per Kilogram

The most important aspect of the CMR Convention is that it limits the maximum compensation that the carrier must pay and is a matter that cannot be "discussed" or negotiated. This limit is set at 8.33 Special Drawing Rights (SDR) per kilogram of gross weight of lost or damaged goods.

How much is this in euros? The SDR value fluctuates daily. On 4 September 2026, 1 SDR = €1.1804, so the limit was equivalent to €9.83/kg. The applicable rate is the one on the date of judgment or as agreed by the parties (CMR, art. 23.7).

Practical example:

If you transport 500 kg of high-value machinery parts (commercial value of €50,000) and the truck suffers an accident that damages the cargo:

The carrier's CMR insurance will compensate you a maximum of: 500 kg × 8.33 SDR/kg = 4,165 SDR

Work out the CMR cap for your shipment

Cap: 9.83 €/kg

per kilogram of gross weight short.

8.33 SDR per kilogram, the International Monetary Fund's unit of account.

CMR, art. 23.3

Example: 200 kg × 9.83 €/kg = 1,966.60 €

SDR rate as at 2026-09-04, for illustration only. The rate that applies is the one at the date of judgment, or the date agreed by the parties. (CMR, art. 23.7)

Source: IMF, currency units per SDR (EUR), 4 September 2026 · 2026-09-04

Work out your compensation

Gross weight affected, in kilograms

Coverage and exclusions of CMR insurance

CMR insurance covers the carrier's liability for very specific cases, but it is essential to know both what it covers and its main exclusions:

Covers

Loss or physical damage to goods. Covers physical damage that goods may suffer during transport.
Delays in delivery. With a maximum limit of the transport rate.

Does not cover

Full Cargo Value. It does not cover the commercial value of the goods; only the carrier's legal liability by weight.
Deficient Packaging. It does not cover damages caused by inadequate packaging or conditioning of the cargo by the shipper.
Force Majeure. It does not cover damages caused by natural disasters, armed conflicts, or strikes not attributable to the carrier.

The difference between CMR vs. all-risk cargo insurance

It is crucial to understand that CMR insurance protects the carrier, not the cargo owner. If the value of your goods exceeds that limit per kilogram, CMR insurance is totally insufficient.

To protect your investment for the total commercial value, if you are the shipper, you need to take out an all-risk policy for the goods that gives you peace of mind that the total value is covered against any incident during transport. This insurance is optional, but indispensable for any valuable cargo, as it covers the difference between the carrier's limited liability and the actual cost of your goods.

Frequently Asked Questions

01.What does the CMR Convention cover?

The CMR Convention protects shippers and carriers for road transport, covering liability for damage, loss, and delay.

02.What is the liability limit?

Maximum CMR liability is capped at 8.33 SDR per kilogram of gross weight short — the goods lost or damaged, not the weight of the whole shipment. On 4 September 2026 that was €9.83/kg; the rate is set by the IMF and the applicable one is that of the date of judgment (CMR, art. 23.7).

03.When does a claim lapse?

The right of action shall be time-barred after one year, or after three years in the case of wilful misconduct or such default as is considered equivalent to wilful misconduct (Art. 32(1) of the CMR Convention). Distinct from this, and prior to it, is the time limit for issuing reservations to the carrier: at the time of delivery if the loss or damage is apparent, and within seven days thereafter — excluding Sundays and public holidays, and always in writing — if it is not apparent (Art. 30(1)). Failure to do so does not extinguish the one-year limitation period; it merely creates a presumption that you received the goods in the condition described in the consignment note, placing the burden of proof to the contrary on you.

04.Is CMR insurance mandatory?

The CMR Convention does not require carriers to take out a policy: it establishes their liability. In practice it is commercially mandatory, because no international carrier operates without one.

Other types of transport insurance

L.O.T.T. Insurance (Spain)

Covers the carrier's liability for damage or loss during national freight transport.

More information

All-Risk Insurance

Protects the total value of goods against damage, loss, or delays during transport.

More information