transport agreement


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.


Courts will apply a fault based methodology to apportion damages. How you evidence proportion of fault will be essential. The findings of the insurer will also be taken into account.


Please have your agreement redrafted by a competent lawyer to avoid such complications.




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