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Procedure for dealing with applications of MTOs where there is a gap in insurance coverage required under Section 7 (1) of Multimodal Transportation of Goods Act (MMTG), 1993
Applicable to:
Multimodal Transport Operators (MTOs)
Effective Date:
06.03.2024
Superseded Circulars:
MTO Circular No. 01 of 2010
Key Changes and Requirements
1. Insurance Coverage Gap
MTOs must ensure there are no gaps in insurance coverage. Gaps ranging from days to years have been observed.
- Risk: MTOs are at risk, and issuance of Multimodal Transport Document (MTD) is a violation of Section 7 of MMTG Act, 1993.
2. Action Against Violations
Absence of insurance coverage for any period will be dealt with as per Section 5 and 7 of MMTG Act, 1993.
- Notice: A notice will be issued, to be replied within seven days, ensuring natural justice.
- Consequences: Submission of application/extension in violation of insurance coverage will be examined and dealt with accordingly.
Important Note
MTOs are advised to ensure continuous insurance coverage to avoid risks and potential penalties.
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