RESPONSIBILITIES AND LIABILITIES OF THE MULTIMODAL TRANSPORT OPERATORCentral

Section 19 of The Multimodal Transportation of Goods Act, 1993

The multimodal transport operator shall not, in any case, be liable for an amount greater than the liability for total loss of goods for which a person will be entitled to make a claim against him under the provisions of this Act.

Summary

Under the Act, the multimodal transport operator's liability is strictly capped.
The operator will never be liable for an amount that is more than the liability for a total loss of goods.
This maximum amount is calculated based on what a claimant is entitled to receive under the provisions of this Act.

Practical examples

1On April 5, 2024, Arjun shipped high-end textile machinery. The shipment was completely lost during the voyage. Although the actual market value of the machinery was 5,000,000 rupees, the maximum liability under the Act was calculated as 300,000 rupees. Under Section 19, the operator is only liable for 300,000 rupees, which is the total loss limit.

2On June 12, 2024, Fatima shipped electronic equipment. She tried to claim 1,500,000 rupees for lost business profits because of the lost cargo. Under Section 19, her claim was restricted to the standard total loss limit of 100,000 rupees, as the operator cannot be held liable for more than the total loss under the Act.

FAQ

1. How is the maximum liability of the operator determined under this section?

It is determined by looking at the maximum amount a person is entitled to claim for total loss of goods under the other provisions of this Act.

2. What happens if the actual value of my lost shipment is higher than the statutory limit under the Act?

The operator's liability is still capped at the total loss limit defined in the Act, unless you declared the value before the operator took charge.

Test yourself

Q1.Under Section 19 of The Multimodal Transportation of Goods Act, 1993, what is the maximum amount for which a multimodal transport operator can be held liable?

Q2.Under Section 19 of The Multimodal Transportation of Goods Act, 1993, if a claimant proves that their business suffered severe indirect damages exceeding the total loss limit, what is the operator's liability?

Q3.Under Section 19 of The Multimodal Transportation of Goods Act, 1993, can an operator's liability for lost goods exceed the statutory total loss limit?

Q4.Under Section 19 of The Multimodal Transportation of Goods Act, 1993, what is the governing benchmark for calculating the maximum liability?

18PreviousSection 18 Loss of right of multimodal transport operator to limit liability.20NextSection 20 Notice of loss of or damage to goods.

←Section 18 Section 20→