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OCP is carrier liability insurance, which works when the carrier is liable for damage, within the limits set by transport law. CARGO insures the goods themselves, regardless of carrier fault, up to the value of the load. These are two different protections. At OTSL we have OCP for 1 million EUR and offer CARGO for high-value goods.
How OCP differs from CARGO
- OCP protects against carrier liability and works when the carrier is liable for the damage.
- CARGO protects the goods regardless of who was at fault, up to the sum insured.
- Carrier liability is limited by law, so OCP will not always cover the full value of an expensive load.
| Scope | Carrier liability (OCP) | CARGO insurance |
|---|---|---|
| What it insures | The carrier liability | The goods themselves |
| When it applies | When the carrier is liable for the damage | Regardless of carrier fault |
| Upper limit | Statutory carriage limits, under CMR 8.33 SDR per kg | Sum insured, usually the cargo value |
| Who takes it out | The carrier | The cargo owner or the forwarder on their behalf |
| Expensive, light cargo | Limit often below the cargo value | Cover up to full value |
When CARGO is worth it
When goods are expensive but light, the CMR limit can cover only part of their value. Then CARGO really protects your interest, because it insures the goods, not just carrier liability. That is why for high-value loads we recommend CARGO as a supplement.
How do we work?
We hold transport and forwarding licences and OCP for 1 million EUR, and for high-value goods we arrange CARGO insurance for the duration of transport. We say plainly what each protection covers, so you can make an informed decision.
See cargo insurance, services and contact.
What exact steps must you take upon delivery to ensure your insurance claim is paid?
The claims handling process depends directly on how quickly you act at the point of discharge. When you notice physical damage to the outer packaging or strapping, you must create a damage report alongside the driver within 24 hours of delivery. If the damage is hidden and discovered only after unpacking, the statutory time limit for sending a written reservation to the carrier is precisely 7 calendar days. Missing this deadline creates a legal presumption that the consignment was delivered in full compliance with the consignment note.
To ensure the insurer approves the claim, you must collect a complete evidentiary packet. Proper notification requires meeting specific conditions:
- Taking at least 5 photos showing the goods inside the trailer, pallet conditions, and damaged items prior to unloading,
- Noting the exact quantity of affected units on the consignment note whenever damage involves more than 2 pallets,
- Retaining the damaged cargo at your warehouse facility for a minimum period of 14 days for potential surveyor inspection.
These procedures and deadlines do not apply if the damage stems from an inherent vice of the goods or when the weight loss does not exceed 1% of the total gross weight. In such instances, insurer liability is excluded regardless of the documentation provided.
Step by step
- Assess load value. Determine the full market value and total gross weight of your goods.
- Check carrier limits. Calculate the maximum standard statutory coverage based on weight and SDR rules.
- Identify liability gaps. Compare the calculated legal protection with the actual value of your shipment.
- Arrange CARGO cover. Purchase additional cargo insurance if your shipment value exceeds standard carrier liability limits.
- Confirm shipment details. Inform us before dispatch to ensure all coverage conditions are properly arranged.
Definitions
- OCP (Carrier Liability Insurance): Insurance that covers the carrier when legally liable for damage caused to the cargo.
- CARGO (Cargo Insurance): Insurance protecting the goods themselves up to their full value regardless of who was at fault.
- CMR (Convention on the Contract for the International Carriage of Goods by Road): An international convention that regulates legal rights and carrier liability limits in road freight.
- SDR (Special Drawing Rights): An international monetary unit used to calculate statutory carrier liability limits per kilogram.
When does this rule not apply?
Standard statutory liability limits do not apply if the damage was caused by gross negligence or wilful misconduct of the carrier. In such circumstances, full compensation depends on legal rulings, making additional cargo insurance essential for expensive goods.
The OTSL role
At OTSL, we manage efficient road transport (FTL) solutions while assisting you in securing proper insurance protection for your shipments. Our team also guides you through claims procedures, detailing the cargo inspection step by step and the report for the insurer to protect your interests across international routes. See also: The SENT system: monitoring the transport of sensitive goods in Poland.
