SAVE the BMC-32

In a decision published in the Federal Register a few months ago, the Federal Motor Carrier Safety Administration said that it would no longer require motor carriers to have any mandatory minimum amount of cargo insurance - the "BMC-32 Cargo Liability Insurance Endorsement".

This action went virtually unnoticed. It was simply assumed that this long-established basic protection for the shipping public would always be there in the event a carrier's insurance was canceled, or it went out of business, or had an insurance policy, but it didn't cover the loss because of exclusions or deductibles.

Although the BMC-32 only provides minimum coverage for loss or damage in transit ($5,000 per shipment, $10,000 per occurrence), in many situations it has proven over the years to be the only recourse for shippers, both large and small, to recover otherwise uncollectible cargo claims.

Shippers - and other motor carriers and freight brokers - have come to rely on the FMCSA's "Licensing and Insurance" Internet website when doing their "due diligence" inquiries to determine whether to use a particular carrier's services.

All this will be gone without legislative intervention. The situation is urgent because the requirement for the BMC-32 Endorsement is scheduled to be terminated as of March 21st.

Attached is a copy of the Transportation & Logistics Council's letter that has been sent to members of the Congressional transportation committees. Also attached is a spreadsheet listing the members of the Senate and House committees with their phone and fax numbers and a sample_letter that you can use to write your Congressman.

The Council urges you to send a fax to your Congressman, and members of the transportation committees, and let them know that you want emergency legislation to save the BMC-32.

George Carl Pezold, Executive Director