Baggage and Luggage Loss

Loss of Checked-in Baggage

Checked-in baggage refers to luggage that is under the care, custody, or control of any common carrier. This is mostly an airline, but can also be a cruise operator. 

A checked-in baggage can unfortunately be lost in case of mishandling, such as wrong destination code or damaged labelling. 

Reasons Behind Your Checked-in Baggage Loss

Travelling, especially abroad, means a higher risk of baggage loss due to long flights, transfers, damage and more. Here are the most common causes behind loss of checked-in baggage:

1. Label Damage

   You must have noticed the tag attached to your luggage once you deposit it. This tag is called the routing label. Damages to this tag, such as getting torn or smudged, can cause delays, eventually leading to loss.

2. Wrong Destination Code

   Manual errors like accidentally typing in the wrong destination code for your checked-in luggage can result in your baggage being sent to the wrong destination. 

3. Human Errors

   It is also possible that there was nothing wrong with your label or destination code, but the employee accidentally placed your luggage on the wrong baggage cart. In this case, your bag will get loaded on the wrong flight.

What to Do if Your Checked-in Baggage is Lost

As soon as you realise your baggage is missing, you should ensure the following:

File a Complaint 

• You need to file a PIR (Passenger Irregularity Report) at the airport itself. This requires details of your luggage (items, approximate cost, etc.)
• Head to your airline's desk and provide them with the details to get your PIR. You will get a claim number and a copy of the missing baggage report.

Contact Your Insurer

• If your travel insurance plan covers lost checked baggage, then contact your insurer and follow their guidance.

How Does Travel Insurance Cover Checked-in Baggage?

Most comprehensive travel insurance plans come with baggage coverage benefits. These include coverage for delayed and lost checked-in baggage. Here is how your policy will cover loss of checked-in baggage:

• Pay you the promised sum insured for the permanent loss of your entire piece of checked-in baggage, which was lost by the airline
• Cover you for essentials like medicines, clothes, toiletries, etc., that you need for your trip.

Loss of Personal Luggage

Personal baggage or luggage refers to the items that remain in your physical possession throughout the journey. This includes your carry-on bags, handbags, backpacks, and the contents within them (gadgets, wallets, jewellery) while you are at the airport, in a hotel, or sightseeing. Unlike checked-in baggage, these items are under your "care and custody" rather than the airline's.

Reasons Behind Your Personal Baggage Loss

While checked-in baggage is usually lost due to logistics, personal luggage loss is often because of environmental factors and human errors:

1. Theft or Snatching

   Pickpocketing in crowded tourist hubs or the snatching of bags in public transport is a common cause of loss.

2. Burglary at Accommodation

   Bags were stolen from a locked hotel room or a rented vehicle.

3. Accidental Misplacement

   Leaving a bag behind at a cafe, a restroom, or in the back of a taxi during the rush of transit.

4. Mugging or Robbery

   Though rare, but organised crimes and mugging are common in isolated regions. If someone forcefully takes your belongings, you should ensure your safety and not resist.

What to Do if Your Personal Baggage is Lost

Losing a checked-in baggage is because of the airlines fault, but if you lose your personal baggage while travelling abroad, then that’s another matter. In these cases, you must bear the burden of proof and act quickly to create a paper trail:

1. File a Police Report (FIR)

   Within 24 hours of the loss, you must visit the police. You must file a First Information Report (FIR) which is essential for your baggage loss claim later. Most insurers will not process a personal loss claim without an official police document.

2. Notify the Management

   If the loss occurred in a hotel or on a tour bus, get a written statement from the management acknowledging the incident.

3. Detailed Inventory

   List every item in your luggage. If possible, find their digital copies of receipts. Having photos of the items will help prove ownership and value.

How Does Travel Insurance Cover Personal Luggage?

Coverage for personal baggage is typically handled under a 'Total Loss or 'Baggage Loss benefit, but with specific sub-limits:

• The insurer will reimburse the market value (depreciated value) of the lost items, up to the limit specified in your policy schedule.
• Since standard baggage cover has "per-item limits" (usually 10-25% of the sum insured), many plans offer specific extensions for high-value electronics.
• Emergency Assistance: Some insurers offer emergency cash transfers to help you continue your trip if your wallet or cards are lost in a personal bag.

When will Travel Insurance NOT Cover Baggage & Luggage Loss?

Insurance is designed for 'unforeseen' events, not negligence. Common exclusions (situations where you won't be covered) include:

• Valuables in Checked-in Bags: Most insurers will refuse to cover jewellery, cash, or expensive electronics if they were placed in checked-in luggage (they should be in your carry-on).
• Unattended Baggage: If you left your bag on a bench to go buy a coffee and it was stolen, it is considered 'lack of reasonable care', and the claim will likely be rejected.
• Partial Loss: If your suitcase arrives but one shirt is missing from inside, many policies only cover the 'Total Loss' of the entire container, not individual items.
• Delay vs. Loss: A bag is only considered 'lost' after a specific period (usually 12 to 24 hours) has passed. Claims made before the airline officially declares the bag 'lost' will be treated as 'Baggage Delay' claims.

How to Claim Compensation for Checked-in Baggage/Luggage Loss

To ensure a smooth payout, make sure to follow this step-by-step claim process:

1. Gather Documentation

   Collect your PIR (for checked-in bags) or FIR (for personal loss), original boarding pass, baggage tags, and a copy of your insurance policy.

2. Submit the Airline Settlement Letter

   For checked-in baggage, you must first claim it from the airline. The insurer will usually pay the difference between what the airline paid and the actual value of your loss (up to your policy limit).

3. Fill the Claim Form

   Complete the insurer's claim form, detailing each item and its approximate age/value.

4. Proof of Value

   Attach receipts for expensive items. If you don't have receipts, some insurers may offer a flat-rate settlement based on weight or standard depreciation.

5. Follow the Timeline

   Submit all documents within the stipulated window (usually 15 to 30 days post-return) to the insurer's claims department via their portal or email.