Carrier Legal Liability Policy

This policy pays all sums for which you shall become legally liable as compensation for

  • Physical loss
  • Destruction of goods
  • Damage to goods or merchandise while in transit, including during loading or unloading
  • While temporarily housed on or off vehicles in the ordinary course of transit.

Essentially, This policy covers your legal liability(as licensed goods carrier) for actual physical loss of or damage to goods or merchandise transported in the vehicle, provided that fire or explosion or accident has arisen on account of

  • Your negligence or negligence or criminal acts of Your servants and
  • The vehicle is damaged by such fire or explosion or accident, and a claim for the same is admitted under the Motor policy covering the vehicle.

It is necessary to be licenced as a carrier or courier to avail this policy.


  • Damage to cargo directly caused by fire, explosion or accident to the carrying vehicle
  • Carrier's liability for cargo
  • Cargo salvage, transhipment, emergency storage costs
  • Financial loss due to the lost freight in respect of the damaged part of the cargo
  • Legal and other costs, incurred in the litigation against the claimants
  • Costs of average adjusters
  • Breakage due to improper handling
  • Flood or water damage or damage by other cargo


  • Liability under any other contract not under Carriers Act of 1865
  • Liability in respect of damage to property belonging to insured or his employees or in his control.
  • Inherent defect or vice, wear and tear, deterioration, spontaneous combustion or decay of perishable goods.
  • Consequential loss arising from loss or damage to goods.
  • Any consequence of riots, strikes, war, ionising radiations.
  • Goods which may be illicit or illegal or smuggled.
  • Commencement of Policy

The cover commences from the time of loading of the vehicle with cargo at the point of origin and expire after the delivery of cargo at the final destination or lapse of 3 days from arrival of the vehicle at the final destination whichever is earlier.

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3/2 'D' Brahmin Street,
Chennai 600116.

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