Carriage of Goods Act

If you hire a company to move furniture, send a parcel by courier or check in your luggage with an airline, you're covered by the Carriage of Goods Act 1979. The Act gives you certain rights to compensation for loss or damage, though any contract you sign might limit those rights.

Loss or damage

If you don't have a written contract with the carrier, your goods will be carried at "limited carrier's risk". This means the carrier is liable for any unintentional loss or damage up to $1500 for each separate item.

If you have a written contract, signed by you, it should specify the type of liability arrangement - either "limited carrier's risk", or one of these three options:

• If the goods are carried "at owner's risk", the carrier is not liable for any unintentional loss or damage.
• For goods carried "at declared value risk", the carrier is liable for loss or damage up to an amount you agree. This amount must be specified in the contract.
• If the goods are carried "on declared terms", the carrier and the customer are free to negotiate all the terms of the contract as they wish. This arrangement will usually be used only by businesses.

There is an exception for intentional damage. If the carrier or an employee intentionally damage or harm your goods, they are liable for the full cost no matter what type of contract you have.

There is also an exception for mail. Letters with postage of 80 cents or less are covered by the Postal Services Act 1998, and there is no right to compensation if they are lost or damaged, or arrive late.

Making a claim

Under the Carriage of Goods Act, you have 30 days to make a claim. However, the carrier's contract may specify a different period - in some cases just a few days. The carrier is free to do this, so it pays to check when you sign the contract.

If you can't resolve the problem with the carrier, you may be able to take a claim to the Disputes Tribunal.