Damaged or Lost Belongings during a trip

What happens if your luggage gets damaged or lost during your travels? Due to the complexity of international baggage handling, your belongings can sometimes go missing and become unrecoverable by the airline at fault.

Lost baggage or damage to your personal belongings can dampen your trip. Thankfully, travel insurance for damaged luggage or lost baggage can help by providing compensation for these scenarios.

What Should I Do If the Airline Lost or Damaged My Belongings?

After a piece of luggage has been missing for 21 days, airlines will consider your baggage lost. According to the Montreal Convention, airlines on international flights are responsible for damaged, lost or delayed baggage and must provide compensation to affected passengers.

Follow this step-by-step guide if your luggage is lost or damaged:

1. Report the Incident to the Airline. If you discover your baggage is missing or damaged upon arrival, act immediately at the airport. Locate the airline’s lost baggage claim desk or a customer service representative to report the issue.
2. Obtain a Property Irregularity Report (PIR) from the airline. This document is crucial for any subsequent claims. Ensure you receive a copy for your records.
3. Keep meticulous records of all your documentation. Retain your baggage tag, any receipts for checked baggage, and the all-important PIR.
4. Take clear photos of the damage. If your baggage is damaged and not lost, be sure to record visual evidence to support your claim.

 

Once you’ve followed the steps above, you can begin the claims process with the airline. Follow these tips for a successful claim:

• Learn What Airlines Compensate: Airlines may offer different compensation for late luggage, damaged baggage or lost belongings. Be sure you’re aware of their specific compensation policies so you’re not shortchanged.
• Understand the Claims Procedure: Each airline has its own process for handling lost baggage claims and compensation for late luggage. Inquire about their specific procedures and required forms.
• Take Note of the Timeframes for Submitting a Claim: Be aware of the deadlines for filing a claim. Typically, you’ll need to submit your claim within 7 to 21 days of the incident, depending on the airline’s policy. Submitting a claim outside of the timeframe may mean that you are not eligible for late baggage compensation.

 

In order to initiate your claim, airlines will want a complete list of the contents of the luggage with their approximate monetary value.

Keep in mind that:

• The worth you assign to your belongings might not be in line with the value assigned by the airline itself.
• To support your claims, airlines might ask for the purchase receipts of the contents of the luggage.
• Airlines will always pay you less than the actual purchase price due to wear and tear.
• Airlines and travel insurance won’t usually cover the loss of items listed as “valuables” or “perishables” under their terms and conditions. Expensive items such as jewelry might be lost for good unless you had them covered by a homeowner insurance provider.

It’s worth noting that some airlines might cover some valuables under their excess valuation protection service. Whether this extra fee is worth it depends on how protected you actually want to be.

 

After a case has been assessed, airlines will offer an amount of money as compensation based on:

• The value of the items.
• The proof that you presented.
• Whether there’s excess valuation protection.

After agreeing on the worth of the lost items, airlines will issue a settlement agreement and a discharge of liability.

 

First of all, you’ll want to show the damage to an airline inspector, as leaving the airport might void any right to claim for damaged luggage. If you have some before photos, use them to substantiate your claim, also take some after photos as they may come in handy later on when you take this up with your travel insurance company.

 

Although airlines might not cover normal depreciation, any major damage to your luggage will definitely be considered. Once the report is made, ask for a copy as you’ll need it for the insurance company.

Depending on the airline, you may be offered:

• Reimbursement on the costs of repair, for which you’ll need to send them your receipts.
• The option to repair your luggage at specifically authorised luggage repair shops.

 

Lastly, you can also take this up with your insurance company. As usual, you’ll have to present your flight details and the damage report. You’ll also need to present the original repair bills and photos of the damage done to your luggage (before and after if it’s a possibility).

As long as you didn’t leave your belongings unattended, travel insurance should usually be able to cover this. To be eligible for reimbursement, you’ll have to report the theft within 24 hours of the occurrence; always remember to get a copy of the report so you can present it as proof to the insurance company.

 

Keep in mind that travel insurance plans usually cover items that were stolen while you physically had them in your possession. Any items left behind or stolen while left unattended will be your responsibility.

So, whichever the situation, remember that travel insurance coverage can save you from the headaches of getting involved in a dispute with your airline.

Keep in mind that if you’re planning on taking the occasional trip, single trip insurance will be enough to protect you from lost or damaged belongings during the length of the journey, while if you’re a frequent flyer,   a multi-trip insurance policy may be your best option.

Airline Compensation for Lost or Damaged Belongings

So, what type of compensation can you expect for damaged, lost or delayed baggage? That depends on whether you are being compensated by the airline, or by your travel insurance provider.

Airline Compensation for Delayed, Lost or Damaged Baggage

Delayed Baggage

If your baggage is delayed, airlines typically offer compensation for late luggage to cover reasonable expenses incurred due to the delay. This often includes reimbursement for essential purchases such as clothing, toiletries, and other travel necessities you had to buy while waiting for your bags to arrive. The specific items and amounts covered can vary depending on the airline’s policies and the duration of the delay.

Lost or Damaged Baggage

When your baggage is declared lost baggage or arrives damaged, airlines are liable to provide compensation. For claims directly with the airline, the compensation is usually capped at the airline’s set liability limit. For international flights governed by the Montreal Convention, this limit is typically around $1,500 – $2,000 USD (or its equivalent in other currencies).

How Airlines Determine Your Compensation Amount

Airlines assess the value of your damaged or lost baggage based on a number of factors.

• Proof of Value: To support your claim, you’ll generally need to provide proof of the value of the lost or damaged items. This can include original purchase receipts, credit card statements, or even appraisals for valuable items.
• Depreciation: For damaged or lost baggage, airlines often apply depreciation based on the age and condition of the items. This means that you might not receive the full original purchase price for older items.
• Liability Limits: Airlines have maximum liability limits. Even if the total value of your lost or damaged items exceeds this limit, the airline’s compensation will likely be capped at that amount, unless you have additional travel insurance for damaged luggage or lost luggage.
• Item Limitations: Some airlines may have specific limits or exclusions for certain types of items, such as jewellery, electronics, or business documents. It’s advisable to check your airline’s terms and conditions regarding baggage liability before you travel. Consider travel insurance for baggage to supplement the airline’s coverage for such items.

Compensation from Travel Insurance Providers

While airline compensation for late luggage as well as damaged baggage can provide a baseline amount, travel insurance provides more comprehensive protection. Let’s take a look at how travel insurance providers handle compensation.

Reimbursement for Lost Items

When you file a claim for lost baggage or damaged belongings with your travel insurance provider, their process for determining the value of your items may differ from that of airlines. Generally, they will require documentation similar to what airlines request, such as purchase receipts, photos, and a copy of the airline’s Property Irregularity Report (PIR).

Replacement vs. Depreciation

Depending on your specific travel insurance for baggage damage, the insurer might offer either replacement cost or actual cash value (which accounts for depreciation).

• Replacement Cost: This means the insurer will cover the cost of replacing your lost or damaged item with a new one of similar type and quality, up to the policy limits.
• Actual Cash Value: This takes into consideration the current market value of the item at the time of loss or damage, accounting for its age as well as wear and tear.

Limits and Caps to Compensation by Travel Insurance Providers

It’s crucial to carefully review the compensation limits for damaged or lost luggage as outlined in your travel insurance policy.

• Different policies will have varying overall limits for baggage loss or damage, this can also be affected by the premiums you pay.
• Additionally, there may be specific sub-limits for certain types of items, such as electronics (laptops, cameras), jewellery, or sporting equipment. For instance, a standard policy might have a higher overall baggage limit but a lower cap specifically for electronic devices.

How Can Travel Insurance Help Me Claim Compensation for My Lost Belongings?

Most standard travel luggage insurance policies offer coverage for a few key scenarios:

• Lost, stolen, or damaged personal belongings: This is the foundation of baggage coverage, which helps you recover financially from the loss or damage to your suitcases and their contents, including valuables up to policy limits.
• Coverage for trip interruption or delay due to baggage issues: Sometimes, a significant baggage delay can throw a wrench in your travel plans. Some policies offer benefits to help with unexpected accommodation or transportation changes caused by such delays.
• Reimbursement for buying essentials: One of the immediate benefits of travel insurance for baggage delay is coverage for the reasonable cost of essential items like clothing and toiletries you need to purchase while you’re waiting for your late luggage to arrive.

How to File a Travel Insurance Claim for Lost, Damaged or Delayed Luggage

1. Document the Incident: Obtain the Property Irregularity Report (PIR) from the airline for lost or damaged baggage. Gather original purchase receipts or proof of value for the affected items and take photos of any damage.
2. Complete the Claim Form: Obtain the claim form from your insurance provider’s website or by contacting them. Fill it out accurately and completely.
3. Submit Your Claim: Send the completed claim form along with all supporting documentation (PIR or police report, receipts, photos) to your insurance provider, following their specified submission process (online portal, email, or mail).
4. Wait for Processing: Be aware of the estimated processing time provided by your insurer. Once your claim is approved, you will receive details about the reimbursement process and timeline.

Common Exclusions and Policy Limitations

Travel insurance for baggage, while helpful, isn’t a blanket solution for all baggage mishaps. There are common exclusions and limitations you should be aware of when considering a policy or filing a claim. Always check the terms and conditions of your policy for a detailed and exact list of exclusions.

Typical Exclusions in Travel Insurance Claims

• High-Value Items: Standard travel insurance policies often have limitations or specific exclusions for high-value items such as electronics, jewelry, and cash. To ensure these items are adequately covered, you might need to pay for additional coverage. Always check your policy details regarding these items.
• Belongings damaged due to improper packing: Insurance providers may deny claims for damage resulting from inadequate packing. If fragile items weren’t appropriately protected or if your belongings weren’t packed securely, leading to damage, your claim might be rejected.

Deadlines and Documentation Requirements

• Deadlines for Compensation Claims: Be mindful of the timeframes for reporting baggage issues. Both airlines and your travel insurance provider will likely have specific deadlines, often within a few weeks (e.g., 21 days) of the incident, for you to file a claim. Missing these deadlines could jeopardise your ability to receive compensation.
• Documentation Requirements: Successful claims rely on providing the necessary documentation. This typically includes your baggage tags, the Property Irregularity Report (PIR) from the airline, receipts for any essential replacement items you purchased due to a delay, and photographs of any damaged goods.

How to Minimise the Risk of Lost or Damaged Belongings

This article is brought to you by Go Bear.

Disclaimer: All info contained herein is intended for your general information only and is not a substitute for insurance advice. If you have a specific question, please consult our insurance experts at 6702 0202.