Chile Insurance Information

CIA link to demographic/economic data on Chile

General Chile Insurance Information

• Compulsory Insurance:
  
  1. Workers’ Compensation (part of Social Security Scheme);
  2. Automobile Personal Accident for drivers, passengers and Third Parties.
• Non-Admitted Insurance:
  Permitted with payment of a 22% tax (certain classes are exempt such as Marine hull / cargo [including aviation].
• Policy Wordings & Rates / Tariffs Controlled:
  Chile is not a tariff market. Policy forms are open to negotiation.
• Policy Language:
  Spanish.
• Types of Insurance Restricted to Government Institutions:
  None known.
• Policy Currency:
  ‘Unidades de Fomento’ (indexed to the Chilean Peso) or foreign currency.
• Currency Restrictions / Exchange Controls:
  Policies cannot be issued in Pesos. All policies must be issued in ‘Unidades de Fomento’ or in a foreign currency. In the latter instance, the Central Bank must authorize the purchase of foreign currencies. In the event of a loss, claim payment will be made in ‘Unidades de Fomento’ and a bank will convert the amount into Pesos at the current exchange rate and payment will be in Pesos.
• Policy Period:
  Annual. Longer term policies are possible with annual premium installments.
• Cancellation Provisions:
  Written notice required. Check policy cancellation provisions.
• Premium Tax, etc. paid by Insured:
  V.A.T. - 19% except for earthquake and Marine/ aviation cargo policies as stated above import / export cargo; also zero for Personal Accident insurance for motor vehicles (SOAP).
• Insurance Companies:
  
• Brokers:
  Brokers and Agents work in Chile.
• Brokerage Commissions:
  Fire - 25%;
  Automobile - 10.5%;
  Marine Cargo - 12%;
  Burglary - 7%;
  Personal Accident - 25%.
  Brokerage commissions cannot be paid to foreign brokers not locally registered.
• Broker of Record Letters:
  Market practice - letters should be filed for commercial / industrial risks.
• Reinsurance:
  Permitted subject to a 2% reinsurance ceded tax.
• Local Natural Hazards:
  Earthquake, Flood.
• Other Information:
  

Property Insurance

• Fire:
  Standard fire perils include - fire and lightning. Aircraft, explosion, earthquake, flood, storm / tempest, burst water pipe, riot / civil commotion, malicious damage, windstorm / hurricane, vehicle impact and weight of snow / avalanche is available in the market for an additional premium charge.
• All Risk:
  Available.
• Coinsurance:
  100%.
• Blanket Insurance:
  Available.
• Business Interruption:
  UK Loss of Profits and U.S. Gross Earnings forms available.
• Replacement Cost:
  Available.
• Discount for fire protection equipment / systems:
  In light of free market, premium credit for fire protection measures is open and negotiable.

Boiler & Machinery / Machinery Breakdown / Engineering

• Wordings:
  Comprehensive coverage available. Forms must be approved. Explosion of Boiler can be provided under the Property (fire) policy. There are no regulations regarding inspections.

General / Public Liability

• Forms Available:
  Comprehensive forms available including Contingent Automobile and Product Liability. Product Recall insurance is not available.
• Comments:
  Policy is issued on an occurrence basis.

Automobile / Motor

• Compulsory Limits:
  Personal Injury to Third Parties is limited to a maximum of 150 ‘Unidades de Fomento’ for death and dismemberment and lesser amounts for partial disability.
• Comments:
  Coverage applies to Insured and any licensed individual driving with the Insured’s permission. Benefits to injured passengers is usually provided by the compulsory Personal Injury Scheme.

Workers’ Compensation

• Comments:
  Workers’ Compensation is included in the Social Security Scheme. Employer’s Liability is most often endorsed to the General / Public Liability Policy. All employees are covered by the Scheme. Extra-Territorial Benefits are available. Medical Expenses are provided and some Occupational Diseases are included. Employee’s have the right to sue but may forfeit the right to recovery under the Scheme.

Marine

• Available Wordings:
  The Institute of London Underwriters clauses and American (U.S.) forms.

Crime

• Available Coverages:
  Fidelity, Burglary, Theft and Robbery.