Truckers to pay for goods damage

The Union road transport and highways ministry has issued the draft notification of rules under the Carriage by Road Act, 2007, fixing liability on goods transport agencies and logistics service providers for loss and damage of goods.

The Carriage by Road Act, 2007 was notified on October 2007, with a view to provide a framework for apportionment of liability between the common carrier and the consignor/ consignee.
The rules under this Act are now being finalised. The Act, once implemented, would repeal the Carriers Act, 1865.

As per the notification, the goods transport agencies and logistics services providers will now have to compensate the consignee, against earlier system of approaching the consumer forum for a settlement.

The notification said, “Liability of the common carrier for total loss shall be limited to ten times of the freight paid or payable.” This, however, is subject to condition that the amount, so calculated, shall not exceed the value of the goods as declared in the goods forwarding note.

Transporters, meanwhile, are upset with the enhanced liability for the loss of goods.

“Damage due to accident is a different case. But there are instances of loss due to theft and highways robbery, which is plaguing the transport sector. In this scenario, holding a transporter responsible is not reasonable,” said a Delhi-based transport company owner, on condition of anonymity.

An industry source from a packer and mover company said the move will annihilate the small transporters. “More than 85% in the sector are small operators. The move will be heavy on them. Damage and losses account for at least 0.5-1% of the annual freight. So how will the smaller operators bear ten-fold increase,” he said.