We are having a transport agreement with a transporter from despatching cargo from Bangalore to Ranchi on a regular basis. Agreement is not very specific about payment in case transporter lorry meets a road accident and insurance company pays much lower amount of consignment value. What will be natural justice, when agreement is not silent and well drafted.
Either parties should have had a policy in respect of consignment of goods to the extent of its value, in case of any accident or fire or theft with the insurance company. Failing which, the insurance company will not be held responsible for the damages of goods if any, in question. Since the said clause itself is silent in your agreement, the transporter will not be held responsible. Here the payment of insurance company is limited, as the policy has not covered to its consignment value.