Liability limit
Page 48
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• I read with interest your correspondent's
interpretation of the RHA's new limitation of liability clause in its 1991 Conditions (CM 23-29 May).
Before your readers rush off in a panic to their insurance brokers, I should like to point out that the interpretation appears to be based only on a selective reading of part of the new clause. What was not mentioned in the article was that before any increased liability comes into effect, the customer is required to inform the haulier of the value of the consignment so that charges appropriate to that value can be agreed.
If this procedure is not complied with the haulier's liability would remain limited to £1,300 per tonne.
The scenario claims referred to in the article are therefore a non-starter.
I would certainly endorse the advice that hauliers should establish the value of the load before speaking to their insurance brokers when a customer requests increased liability. Not only is this necessary anyway to comply with the Conditions as mentioned above, but brokers will require this information to assess the risk, inform underwriters and importantly to ensure that the appropriate insurance cover is provided.
B Johnson Managing director, RHA Insurance Services, Birmingham.