How Travel Insurance Works For Baggage?

• Written by Mudit Handa

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Losing your baggage while on vacation can ruin your trip and dent your finances. However, your travel insurance includes baggage insurance that covers the loss of baggage. Luggage insurance is a part of travel insurance that covers the loss or delay of your luggage during travel. A travel insurance policy reimburses the cost incurred due to the lost baggage. 

In this blog, we will learn how insurance for luggage works under travel insurance.

What is Baggage Coverage under Travel Insurance?

Baggage coverage is a benefit under travel insurance that financially protects you against losing or delaying your baggage during travel. It is important to understand that in the case of travel insurance, baggage refers to checked-in baggage while you are on a flight to your destination. 

Why is Baggage Insurance Needed?

You might be wondering why anyone would need travel luggage insurance for checked-in baggage. Isn't it the airline's responsibility? Even if it is the responsibility of the airlines to ensure baggage delivery, there may be situations which may lead to loss or delay of your check-in baggage, such as 

1. Bad weather causes delays in handling and delivery of checked-in baggage.
2. Baggage loaded in the wrong plane or lost during loading.
3. Misprinted or damaged routing labels cause the loss of luggage. This is quite common on connecting flights.

In such situations, an extra layer of protection helps secure your luggage, saves you from unnecessary financial stress and ensures that you continue your trip without hassle.

What is Covered under Travel Baggage Insurance?

Here are the conditions that are covered under baggage insurance for travel.

Loss of Checked-in Baggage

If all checked-in baggage is lost at the final destination or en route in case of multiple destinations while in the custody of the carrier in which the insured has travelled, the travel insurance company indemnifies the loss on a reimbursement basis if the following conditions are met.

1. To file a lost luggage insurance claim, the insured needs to report the loss of baggage with documentary proof and a property irregularity report from the concerned authority within the time specified in the travel insurance plan.
2. The maximum liability for lost baggage is up to the limit specified in the lost baggage insurance claim policy.
3. For more than one checked-in baggage, the company pays a proportionate sum insured under baggage or suitcase insurance if all the baggage is not lost.
4. Any compensation paid by the common carrier is deducted from the claim amount payable by the insurer.
5. If the lost baggage is recovered and offered for delivery, the insured must refund the claim amount paid under lost luggage insurance.

Delay of Checked-in Baggage

Suppose the delivery of the checked-in baggage is delayed more than 12 hours after the carrier's landing time. In that case, the insurance company pays a fixed amount as delayed baggage compensation per the policy schedule if the following conditions are met.

1. The insured must submit a non-delivery confirmation from the airline to file a baggage delay insurance claim.
2. The insured should also provide details of the delay period in the non-delivery confirmation.

What is not Covered under Baggage Loss Insurance?

There are specific exclusions applicable to baggage insurance.

1. Partial loss or damage to any item in the check-in baggage is not covered.
2. Any loss due to delay, detention or confiscation by customs or public authority is not covered.
3. Any loss due to damage to the checked-in baggage or claiming for damaged luggage is not covered.
4. Any loss of valuables is not covered.
5. Loss of checked-in baggage shipped separately is not covered.
6. Delay of checked-in baggage is not covered if the destination is in India
7. Self-carried or cabin baggage is not covered.

Important Documents Required for Claiming Baggage Insurance Only

You must possess certain documents to be eligible for filing a delayed or lost luggage compensation claim.

1. A receipt from the common carrier as proof that your lost baggage was handed over to the common carrier. 
2. A document confirming that the common carrier has acknowledged liability and paid for part of the loss.
3. Proof of the cost of the baggage, in case the cost of the lost baggage is more than ₹ 5000.

Also Read: How To do Travel Insurance Baggage Damage Claim?

Conclusion

If you are planning an international trip, an International travel insurance plan with sufficient baggage coverage is a must. Care Health Insurance travel insurance plans provide inbuilt coverage for checked-in baggage, so you do not have to worry about buying separate baggage insurance.

Before selecting a plan, understand the inclusions, exclusions and benefits first. Also, check with the airlines about their baggage policy and how they can assist if there is a delayed or lost checked-in baggage. Many airlines compensate for delayed checked-in baggage for a specified number of days. For instance, if you experience a Delta baggage delay, the airline reimburses purchase expenses up to a specified amount for the first five days of the baggage delay. 

Disclaimer: Plan features, benefits, coverage, and claims underwriting are subject to policy terms and conditions. Kindly refer to the brochure, sales prospectus, and policy documents carefully.