Parcel damaged during air transport: compensation and insurance
Compensation in air transport: a weight-based cap
For international carriage by air to which the Montreal Convention applies, the carrier’s liability for cargo is generally limited to 26 Special Drawing Rights (SDRs) per kilogram in the event of destruction, loss, damage or delay. This revised limit has applied since 28 December 2024. Under Article 22(3), where the consignor makes a special declaration of interest in delivery at destination when the package is handed to the carrier and pays a supplementary sum if required, the carrier is liable up to the declared sum, unless it proves that sum is greater than the consignor’s actual interest in delivery at destination.
When does this apply? The Montreal Convention applies to international carriage where the place of departure and destination are in two States Parties, or where there is an agreed stopping place in another State, even if the departure and destination are within one State.
For a lightweight, high-value item, a weight-based cap may remain well below its commercial value. Transport insurance may therefore be relevant when the declared value exceeds the level of compensation provided by the carrier.
What should you do if your parcel is damaged?
Checklist
- Keep the outer packaging, cushioning material and damaged goods until the claim is resolved or the carrier or insurer confirms that they are no longer needed.
- Take clear photos of the packaging and the damage observed.
- Keep a copy of the commercial or pro forma invoice enclosed with the shipment.
- Gather the tracking number and the documents requested by the carrier or insurer.
To support your claim: attach available proof of value, a precise description of the goods and, where relevant, their serial number, a repair estimate or a report. The documents requested may vary depending on the carrier and the case.
Please note: when the Montreal Convention applies to the international carriage of cargo, the person entitled to delivery must make a written complaint to the carrier immediately after discovering the damage and, at the latest, within 14 days of receipt. The complaint must be given or dispatched within that period. If no complaint is made within that time, no action lies against the carrier, except in the case of fraud. Read Article 31 of the Montreal Convention.
A special declaration of interest in delivery and transport insurance are not necessarily equivalent: their limits, exclusions and supporting documents depend on the applicable terms and conditions. Before taking out insurance or making such a declaration, check that the intended protection corresponds to the nature and value of your goods.