Multimodal Transport Insurance:
Cargo and Liability in Combined Carriage

What Is Multimodal Transport Insurance?

Multimodal (combined) transport is the carriage of goods under a single contract of carriage by more than one mode (for example road, sea, air or rail). The Turkish Commercial Code regulates it under the heading "carriage by different types of vehicles" (TCC Articles 902–905). The need that the market describes as multimodal transport insurance, combined transport insurance or multimodal liability insurance in fact divides into three distinct subjects:

• (A) The cargo itself: Physical loss of or damage to the cargo owner's goods along the transport chain. This is the subject of marine cargo insurance.
• (B) The transport operator's liability: The liability, as carrier, to the cargo owner of the multimodal transport operator (MTO) that undertakes the carriage under a single contract, usually under a transport document issued in its own name.
• (C) The transport organiser's liability: The legal liability of the freight forwarder that organises the carriage to its customer (FFL).

These three subjects are not automatically provided together in one policy. Which policy deals with which is determined by reviewing the contract of carriage and the policy wording. This page is general information only and does not constitute the scope, price, acceptance or a guarantee of payment of any specific policy.

Liability Regime in Combined Carriage: TCC Articles 902–905

Which rules apply to a loss in combined carriage depends on where in the carriage the loss occurred and on the contracts that apply. The main provisions of the Fourth Part (carriage by different types of vehicles) of the Fourth Book (Carriage) of the Turkish Commercial Code can be summarised as follows:

• Conditions of application (Art. 902): The carriage must rest on a single contract of carriage forming a whole, must be performed by different types of vehicle, and the parties must be such that, had they concluded separate contracts for each type of vehicle, at least two of those contracts would be subject to different provisions. Provisions of international conventions that bind Türkiye and provide otherwise are reserved.
• Where the place of loss is known (Art. 903): If it is clear in which part of the carriage the event causing loss, damage or delay occurred, the carrier's liability is determined by the provisions that would have bound a separate contract of carriage for that part. The burden of proving in which part of the carriage the event occurred lies with the party asserting it.
• Notice and limitation (Art. 904): Notice of loss and the start of the limitation period are regulated separately; the Code applies specific notice rules whether or not the place of loss is known.
• Moving goods (Art. 905): If the subject of the contract is "moving goods" (goods taken from a home, office or similar place to a similar place; Art. 894), the provisions of the Third Part of the Book apply; in that case Art. 903 applies, as regards the part of the carriage where the loss occurred, only if an international convention binding on Türkiye applies.
• Where the place of loss is unknown: If the place of loss cannot be determined, the general provisions of the Code on contracts of carriage apply. Under those provisions a carrier of goods is liable for loss, damage and delay occurring between taking over and delivery of the goods (Art. 875), and compensation is in principle limited to 8.33 Special Drawing Rights (SDR) per kilogramme of the consignment (Art. 882).

In international carriage each leg may instead be subject to its own liability regime. By way of example: on the road leg the CMR limit of 8.33 SDR per kilogramme may apply, on the air leg the Montreal Convention limit of 26 SDR per kilogramme (from 28 December 2024) may apply, and on the sea leg the applicable sea-carriage regime and the bill of lading terms are decisive. These limits can fall below the actual value of the cargo.

Cover for the Cargo Owner: Marine Cargo Across the Chain

A single marine cargo policy for the cargo owner's goods may, depending on the wording, cover more than one leg of the transport chain (including change of mode, transhipment and intermediate storage). Which stages are covered must be read from the clause used (for example ICC A, B or C) and from the policy provisions that define the start and end of transit.

• Independence from carrier limits: The cargo policy is not bound by the carrier's liability limit; where the value of the cargo exceeds the carrier's limit, the difference is the subject of the cargo policy.
• Recourse: After paying a claim the insurer may seek recourse against the liable carrier. Recourse is limited by the carrier's liability regime, its limits and time bars; where the place of loss is unknown, recourse may be harder.
• Delay and indirect loss: Loss caused by delay is excluded in many cargo clauses; the position depends on the wording.

For the details of cargo cover, see Marine Cargo Insurance.

The Multimodal Transport Operator (MTO) and the Liability Gap

A multimodal transport operator undertakes the carriage under a single contract, usually under a multimodal transport document issued in its own name (for example the FIATA multimodal bill of lading). It may be liable to the cargo owner as a carrier; however, the liability limits in its contracts with the sub-carriers that actually perform the legs may be lower than the liability it assumes towards the cargo owner. That difference creates a liability gap.

Which policy deals with this gap depends on the wording: in some structures it falls within a freight forwarder liability policy (FFL), in others it is arranged under a separate transport operator liability cover. No party should be treated as automatically insured merely because it is an MTO, an NVOCC or a forwarder; the status of insured and the interest are defined in the policy.

For the forwarder's liability, see Freight Forwarder Liability; for the carrier's liability on the road leg under CMR, see CMR Carrier Liability. CMR carrier liability insurance addresses only the liability of the road carrier within the CMR; it does not automatically cover the other legs of a combined operation.

Marine Cargo, CMR, FFL and MTO Liability: Comparison

These products are not substitutes for one another; which one is needed depends on the role under the contract of carriage (cargo owner, carrier, forwarder or MTO).

Where the Place of Loss Is Unknown, and Notice Periods

In combined carriage it is often not apparent on delivery on which leg the damage occurred (for example because the container stayed sealed). If the place of loss is unknown, the carrier's liability is assessed under the general provisions of the Code; if it is known, the regime of the relevant leg applies and the burden of proof lies with the party asserting it (TCC Art. 903).

• Rules on notice of loss and limitation are set out in TCC Art. 904; each leg may also have its own notice periods. When damage is found, it is therefore important to give prompt written notice to all potentially liable parties.
• Evidence such as a joint survey on delivery, photographs and container seal records can help establish where the loss occurred.
• Under the cargo policy, notice conditions and the periods for notifying the insurer depend on the policy itself.

Exclusions and Policy Limits

The following are examples; the list is not exhaustive and each exclusion may have exceptions or conditional cover.

• Delay: Loss from delay is excluded in most cargo clauses; in transport operator liability structures delay may be dealt with separately.
• Insufficient packing and stowage: Packing, container stuffing or stowage that is not suited to the conditions of the transit is excluded in some wordings.
• Inherent vice: Deterioration or damage arising from the nature of the goods themselves is excluded in some wordings.
• War, strikes and similar risks: May be dealt with under separate clauses in cargo policies; see Marine Cargo War and Strikes Insurance.
• Temperature-sensitive cargo: Loss from refrigeration failure or temperature deviation needs separate assessment; see Temperature-Controlled Cargo Insurance.
• The container itself: Damage to the container equipment is a separate matter from the cargo; see Container and Equipment Insurance.
• Deductibles and limits: A deductible per shipment or per event, and per-shipment or annual limits, are defined in the policy.

Information Needed for a Quotation and Underwriting

• The transport chain: modes, route, transhipment points and intermediate storage
• The type of transport document (for example multimodal bill of lading, bill of lading, CMR, air waybill) and the parties to the contract
• The party to be insured: the cargo owner, or the transport operator or forwarder
• The type and value of the goods, packing and how the container is loaded
• Shipment frequency and annual transported value
• Terms of delivery (Incoterms) and the allocation of risk and interest; see the Incoterms Guide
• Sub-carrier and agency contracts and the liability limits in them
• Loss history and requested deductibles

This list is an example; the information and documents requested vary by insurer and policy structure and should not be read as a single mandatory standard form for every insurer. Acceptance, requests for further information and terms rest with the relevant insurer.

Frequently Asked Questions

Neolife's Role

Neolife Group can assess the relevant information and contracts, explore suitable local insurance and reinsurance solutions, carry out placement work and compare the quotations received. This does not imply the capacity of any particular insurer or reinsurer, acceptance of cover, price or any commitment to pay; these are subject to the rules of the relevant insurer, to legislation and to the policy terms.

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