Transporters will have to cough up 10 times the freight charges in case of loss of goods carried by them, if the government implements draft changes in Carriage by Road Act, 2007. However, the penalty amount will not exceed the value of goods lost.
In case of partial damage to the consignment, a government-approved valuer will evaluate the extent of damage. The consignor will have the right to select a valuer from the list put out by the government, states the proposed Carriage by Road Rules, 2010.
In the case of perishable goods, the consignor should select the valuer within 24 hours of reporting the damage. The transporter can select the valuer in case the consignor fails to execute his right within the given time.
?The responsibility of the common carrier for the goods carried would be only during the transit period,? says the draft issued on June 15.
The liability shall be calculated on the higher amount among actual freight due or 90% of total charges, excluding taxes, it adds.
There was no such limit to transporters’ liability in Carriage by Road Act, 2007. Without prescribing any scale of penalty, the Act said it should be based on the value, nature and freight of goods.
If the penalty was pre-fixed by the transporter and the consignor, then that amount so fixed was to be paid in case of loss of goods.
The government has also introduced rules for revocation and cancellation of registration. The registration can be revoked for two weeks to one month up till two violations of rules. At the third violation, the registration may be cancelled permanently.
The proposed rules have faced heavy criticism from transporters. All-India Motor Transport Congress (AIMTC), a union of 700 transporters’ associations, said a better way to handle loss of goods would have been compulsory insurance by the consignor. ?The consignor could easily claim the amount of loss from the insurance company. The government is needlessly burdening us as no transporter deliberately causes any loss to goods,? secretary-general Ramesh Kumar Gulati told FE.
?There is no provision for cancellation of registration in any industry. The provision will endanger our livelihood,? he said. AIMTC has written to its member associations on the issue and will send its response to the government after a meeting of its managing committee early July.