Good advice, Totti.
Having worked in Customer Relations for several years I can tell you firsthand that it is difficult to have a steadfast formula that applies in all cases as people do abuse that once they learn it.
I saw a case where LH offered 100% reimbursement for toiletries. Passenger spent $2500 for makeup and (top of the line) toiletries which were for most people's standards not a necessity for a 24 hour baggage delay.
I have likewise seen luggage never be seen again but the owner claimed that it and everything in it was only worth a small amount like $500.
Is it fair that we should pay maximum liability for only 24 hours delay (first case) and 1/3 of that for total loss (second case)?
This is why LH tries to judge each case individually and has only guidelines but not formulas (only maximum liability cannot be changed).
Hope this gives you some insight into the process.
Best,
Michelle