An End of an Era
Condensed from Federal Register: June 22, 2010 (Volume 75 - Number 119)
Rules & Regulations - Pages 35318 - 35329
Updated 8/11/2010
To the surprise of many insurance and transportation specialists, the Federal Motor Carrier Safety
Administration [FMCSA] announced it is eliminating the requirement for most for-hire motor (common)
carriers of property and for freight forwarders to maintain cargo insurance in prescribed minimum
amounts, and file evidence of this insurance [the B M C - 32] with the FMCSA.
According to the FMCSA, of the approximately 252,600 total for-hire motor carriers and freight
forwarders, there are about 166,700 for-hire carriers and 1,600 freight forwarders registered with
the FMCSA subject to current cargo insurance requirements.
After considering all of the comments made to the Docket No. FMCSA-2010-0189 [Reviewable on
http://www.regulations.gov ] - a review of the
4 pages revealed no specific comment relating directly to the subject matter - the Agency decided to
do away with the B M C - 32 except for the aforementioned entities.
So in the spirit of less government regulation - how is that working out for everyone - but with an
eye toward prudent decision making, the FMCSA has directed the shipping industry "... to protect
itself by insuring that carriers with whom they do business are adequately insured."
From an insurance industry perspective, page 35326 provides the procedural answers for the insurance
industry as follows -
Note: Household goods motor carriers and household goods freight forwarders
will continue to be subject to this cargo insurance requirement.
This proceeding applies only to for-hire motor carriers and freight forwarders as defined in 49 U.S.C.
13102. The proposed effective date is March 21, 2011.
All BMC-32 endorsements and BMC-34 certificates of insurance that
insurers have issued to motor carriers and freight forwarders, except
household goods motor carriers and household goods freight forwarders,
will expire on the effective date of this final rule, March 21, 2011.
FMCSA will be amending the BMC-32 endorsement and BMC-34 certificate of
insurance to reflect the requirements of this final rule by removing
the references to common carriers and amending other incorrect
references. FMCSA will be seeking Office of Management and Budget (OMB)
approval of the new forms before the effective date of the final rule.
Insurance companies will not need to cancel any previous FMCSA filings.
FMCSA will not remove the names of insurance companies and the
appropriate policy numbers from FMCSA web sites and any other FMCSA
distribution methods until March 18, 2013, the second anniversary of
the effective date of this final rule, to facilitate identification of
insurance coverage for claims arising from transportation occurring
while the policies were in effect.
The Agency has added a new paragraph (f) to both Sec. Sec. 387.313
and 387.413. These new paragraphs will serve as notice to the public
that any valid form BMC-32 endorsements and BMC-34 certificates of
insurance on the day before the effective date will expire on the
effective date of the final rule for those 70,000+ for-hire motor
common carriers and freight forwarders that do not transport household
goods for individual shippers.
FMCSA believes it is unreasonable to
require the insurance companies to cancel the filings electronically or
manually, as they may do under Sec. Sec. 387.313(d) or 387.413(d).
FMCSA will continue to maintain the previously filed data in its data
systems until March 18, 2013, which is two years after the effective
date of this final rule. Two years from notification of disallowance of
the claim is the standard statute of limitations for filing a civil
action based on a loss and damage claim under a receipt or bill of
lading pursuant to 49 U.S.C. 14706(e).
The IMUA Transportation Committee will monitor future developments and advise
members of any future developments.