The CMR Convention applies to every contract for the international road carriage of goods, when the place of taking over the goods and the place designated for delivery, as specified in the contract, are situated in two different countries, of which at least one is an contracting country. Is the carrier liable, the maximum liability for material damage is 8,33 SDR per gross kilogram weight. The rate of SDR fluctuates and will be calculated by several factors. At this moment 1 SDR equals € 1,21 so around € 10,00 (8,33 SDR) per gross kilogram weight. An example to illustrate:
During a road transport from The Netherlands to Germany a shipment of 1 machine with a value of 30.000,00 euro is fully damaged. Weight of this shipment is 300 KG. Liability from the carrier according the CMR Convention is a fact. This Convention has a maximum indemnification per kilogram gross weight of € 10,00 (8,33 SDR). The maximum compensation in this case: 300 kg x € 10,00 = € 3.000,00. In this case insurance premium would be € 30,00 + € 25,00 administration costs. Total costs for additional insurance would be € 55,00 and covers the complete gap of € 27.000,00.