Under international rules, an air carrier’s standard liability is limited to a fixed amount per kilogram and does not cover the full value of expensive or fragile cargo. If a shipment of electronics or jewellery is lost, the basic carrier compensation may be far below the actual purchase value. Separate insurance is therefore recommended for valuable cargo.
What insurance covers
A standard policy generally covers total loss, damage during loading, transport and unloading, and certain force-majeure events such as weather delays or aircraft technical issues. It usually does not cover natural weight loss, damage caused by clearly inadequate packaging, or goods prohibited from transport.
The premium is calculated as a percentage of the declared cargo value and the policy is issued together with the air waybill. Insurance cannot be added after the cargo has departed. The declared value must be supported by the invoice, and understating it to reduce the premium also reduces the potential payout.
What is required to make a claim
- Photograph the cargo and packaging before opening it;
- Prepare a damage report with a warehouse representative if the packaging raises concerns;
- Keep the original air waybill and insurance policy;
- Submit the claim within the period stated in the policy, usually from several days to several weeks after the damage is discovered.
Without this evidence, the insurer may reject the claim even if the policy was issued correctly. The report and photographs should therefore be completed immediately when the cargo is received.