Air Cargo Insurance and Claims Guide

Compensation for airfreight is based on the Montreal Convention, with carrier liability capped by gross weight and limited in amount. For high-value goods, relying solely on carrier compensation is far from sufficient—it is recommended to purchase commercial airfreight insurance or declare a higher value to the carrier (subject to a SVC surcharge). Claim deadline: a written notice must be submitted to the carrier within 14 days of discovering the damage (otherwise the right to claim may be lost).

1. Why do you need airfreight insurance?

Airfreight shipments may face risks such as loss, damage, or delay during transit. However, the carrier's compensation standard (Montreal Convention) is very limited — approximately $22/kg. For high-value goods, this is far from enough to cover actual losses.

2. Two ways to protect cargo value

3. Basic Covers: Air Transport Risks and Air All Risks

Air cargo insurance has two basic covers:

• Air Transport Risks: covers total or partial loss caused by lightning, fire, explosion, abandonment due to adverse weather or other perils, or accidents such as collision, crash, falling or disappearance of the aircraft.
• Air All Risks: covers everything under Air Transport Risks plus total or partial loss from external causes (e.g. theft, shortage).

After choosing either basic cover, additional risks can be added by agreement.

4. Period of Cover: Warehouse-to-Warehouse

Air transport insurance applies on a warehouse-to-warehouse basis: from the insured goods leaving the warehouse or storage premises named in the policy at origin, until arrival at the final warehouse or storage premises of the consignee named in the policy.

• If goods do not enter a warehouse, cover ends 30 days after discharge at the final place of discharge;
• If goods are not discharged, cover ends 15 days from midnight of the day the aircraft arrives at destination;
• If transshipped at an intermediate port, cover ends 15 days from midnight of the day the aircraft arrives there, and resumes when loaded on the onward flight.

  5. Claims process

Identify the problem (within 7 days of arrival) → Preserve evidence (photos/notarization) →
Submit a written claim to the carrier (within 14 days) → Provide complete documentation → Review → Payment

6. Insurance purchase recommendations

Need airfreight insurance services? Bofeng Logistics can assist you in purchasing air cargo insurance and provide claims guidance after an incident.

📞 Hotline: 130-7567-8958 | ✉️ Email: info@zhbfwl.com