Insurance rise warning
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• A leading transport lawyer is warning international operators that they may have to pay higher insurance premiums when cabotage is fully introduced in 1998.
Stephen Kirkbright says many hauliers doing cabotage work fail to realise that insurance cover will have to be increased to comply with a range of legal requirements.
At present all international operators have to sign a CMR agreement that covers goods in transit. The minimum rate is 2,000 per tonne but some countries demand a higher minimum rate domestically and operators have to adjust their insurance cover accordingly.
"Cabotage is a whole new ball game," says Kirkbright. "Situations will arise where British operators will be taking loads from Paris to Marseilles. Many automatically think their liability is covered under CMR hut these rights end for domestic operations in other European countries. The minimum French rate is 4:12,000 per tonne of goods carried, meaning operators could be up to 4:10,000 per tonne under-insured.."
The Road Haulage Association is producing a leaflet on cabotage after deregulation.