Insurance

Insure your Cargo

LAN CARGO, together with Chilena Consolidada Seguros Generales S.A., offers a convenient insurance coverage, in case your cargo is damaged or lost while being transported from its point of origin to its final destination.

Amount Value Transport Policy

1.- POLICY GENERAL TERMS

Insured Goods:

• Fresh Fish.
• Fresh Fruit, Vegetables and Flowers.
• General Merchandise (non used goods).

Packaging:

• Fresh fish must be packaged in polyethylene, with dry ice and/or ice shavings.
• Fresh fruit, vegetables and flowers must be packaged in cardboard containers.
• General merchandise must be accordingly packaged.

Goods Not Included:

• Gold.
• Silver.
• Cash.
• Bonds, checks and other securities.
• Works of Art.
• Live Animals.
• Fish meal.
• Explosives.
• Containers.
• Flammables.
• Computer Memory.
• Personal effects.
• Used Cargo.

Coverage for damage or loss caused by electric and/or mechanical malfunction is also excluded, unless expressly covered by the issued policy. Moreover, damage and/or loss caused by rust, oxidation, and gradual wear are expressly excluded unless due to an accident covered by the policy at hand.

Damage and/or loss of clothes, fabrics and similar items, caused by wrinkles, tearing, loss of ironing, and strap marks are expressly excluded.

In case of damage or loss of the insured goods, the insured party is obligated to preserve the damaged goods and make these goods available to the insurance company "as is".

Under no circumstance the insurer will use or substitute these damaged goods without written authorization from the insurance company or the liquidator.

Insurance Geographic Limits:

• From and to location indicated in the AirWaybill, with a maximum of 500 kms. in case land transportation is included.

Coverage:

• From airport to airport.

Rate:

• The fixed rate of this insurance is 0.13% of the total cost of the merchandise.

Deductible:

• 10% of the loss with a minimum of US$ 250 (in case of perishable goods).
• 0,5% of the loss with a minimum of US$ 150 (in case of general cargo).

2. SPECIFIC POLICY TERMS

Appraisal of Merchandise

Cargo exported under free consignment sales or consignment with minimum warranted price, shall be insured in the amount declared by each shipper prior to the start of each shipment.

This amount shall be the basis for the calculation of the indemnity as set forth in the respective policy, unless said amount exceeds the destination market price of the same goods, in which case this latter amount shall be used for calculating the loss. Goods exported under the "unconditional" sales modality shall be insured at C.I.F. price of the same, plus an optional 10% for verified expenses.

The airline may verify the corresponding invoice, as well as the content of the cargo prior to loading.

How to insure your shipment?

The client will be responsible of asking for the activation of the insurance. Otherwise, the cargo will not be covered by the insurance. When assuring the load, the client must indicate the amount of insurance in the field "Amount of Insurance" in the AirWaybill. The premium shall be determined based on this amount.

Example:

Amount of Insurance
US$ 10,000.-

Cost of Premium
US$ 13.-

What to do in case of damage or loss?

Notification of Claim to the Carrier
If your cargo arrives damaged, short or loss, you must notify the carrier immediately so as to coordinate an inspection of the shipment in question. Moreover, the consignee must give written notice to the carrier of the amount involved in said damage, short, or loss, together with all respective documentation, specifying circumstances of such loss/damage. Also a copy of the air waybill must be provided.

Inspectors and/or Surveyors
An inspection and survey must be performed for all loss, damaged and/or shortage of shipments. The shipper and/or consignee will be responsible for this cost/expense, however the shipper and/or consignee will be reimbursed for the cost of the survey report if it is determined that by the carrier or by a competent Court of law and such damage, loss and/or shortage of shipment is covered under the policy.

Final Settlement of Claim
The documents of the claim in question shall be remitted to the insurance adjuster (Señores Carvallo Transporte Ltda.), designated by the Insurance Company to this effect, who, taking into consideration the amount of insurance and the complexity of the damage, shall settle the same. Therefore, if the damage is verified and covered by the policy, our client shall be indemnified based on the amount insured or the corresponding percentage.

If you need more additional information please Contact Us.