Section 10 of CBR Act : Section 10: Liability Of Common Carrier

Explanation using Example

Imagine you run a business that manufactures delicate glassware. You enter into a contract with a common carrier to transport a large shipment of your glassware to a retailer. The agreed freight for the transportation is $2,000. The carrier's standard liability, as per the regulations, is $20 per kilogram. Your consignment weighs 100 kilograms, making the carrier's maximum standard liability $2,000.

Unfortunately, during transit, the truck carrying your glassware is involved in an accident, and your entire shipment is damaged. The value of the goods was $10,000, but because you did not opt to pay a higher risk rate, the carrier's liability is limited to the prescribed amount of $2,000, which is also equal to the freight charges you paid.

Moreover, if the delivery was delayed but within a period mutually agreed upon in the goods forwarding note, and the delay caused some loss or damage, the carrier's liability would still be limited to the amount of the freight charges, unless you had agreed to pay higher compensation for delays as per section 11 of the Act.

In both cases, if the carrier can prove that the damage or delay was not due to their fault or neglect, or that of their servants or agents, they may not be held liable at all for the loss, damage, or delay.