The author of "The House of the Spirits" expressed her thanks for the honour, which she called one of the most "meaningful" she has received because it bears the name of the celebrated Danish storyteller and is "a tribute to fantasy, to magic".
"Andersen's stories were the first I heard as a little girl. My mother read them to me in Spanish," she said in her acceptance speech.
Those stories "stimulated my curiosity, nourished my fantasy and taught me things about loyalty, love, greatness, the pains and losses of life", she said.
The Chilean writer joins British author J.K. Rowling, the creator of the Harry Potter saga, as a recipient of this recently-created award, which was established by a private foundation in cooperation with the Odense City Hall.