All you need to know about Baggage Delay and Baggage Loss Travel Insurance Cover

According to a BBC Report in 2019, out of 4.3 billion bags in total, nearly 25 million bags still get misdirected or lost annually. From your bag not reaching the connecting flight in time to another passenger simply picking up the wrong bag and from poor handlers to extreme weather conditions, there could be many reasons why a substantial quantity of bags go missing. But once you reach your destination and don’t see your checked-in baggage on the carousel, you are least bothered about the reason and more concerned about your belongings. However, there is an easy way to deal with such stressful situations where your baggage is either arriving late or worse, gets permanently lost. It’s travel insurance!

1. What is travel insurance?

When travelling abroad, you may not know anyone there or speak the local language. Any kind of injury or sickness can not only ruin your trip, but also skyrocket your expenses given how costly the medical facilities are at international destinations. To protect yourself and your loved ones from any such unforeseen expenses, it is important to opt for a travel insurance policy. More importantly, it takes care of your finances when you encounter issues like loss of baggage, flight delays, hospitalization expenses, compensation of damages to be paid to a third party, etc.

2. How Does Baggage Delay & Baggage Loss Cover Work Under Travel Insurance?

Most likely your luggage will have all your clothes, some of your accessories, and even cash. You would be clueless in a foreign country without all that. However, if you have travel insurance, it will cover your checked-in baggage when there is a delay or loss of your items.

• Through your travel insurance, you can buy certain essential items that were in your checked-in baggage while you wait for your belongings. The maximum amount is mentioned in your policy wording. 
• When the airline informs you that your baggage has been lost for good, you will get a lump sum amount as mentioned in your plan. In case, only a part of the baggage is lost, the amount will be proportional to your loss. Simply put, if you lose 3 out of 4 bags, you will receive 3/4th of the sum insured.
• Depending on your policy wording if the airline agrees to pay you a certain amount for your loss, the insurer may only pay the remaining amount to you.

 Exclusion:

• If you receive your baggage and you discover that some items are missing, you will not get any compensation as partial loss is generally not part of the travel insurance policy. To receive the sum insured amount, your whole bag has to be lost.
• Loss of specific items like laptop or cameras is not covered as passengers are advised to carry them in their hand luggage.

3. Steps to follow in case of delay or loss of baggage:

• Once you realize that your checked-in baggage has gotten delayed or lost, you need to raise the red flag. You need to approach the airport’s grievance counter and register your complaint. You may even find out from them if they have any compensation policy. 
• Next, you must receive a written Property Irregularity Report (‘PIR’) from the airline that confirms the delay or the loss of your baggage and if any compensation will be made from their end.
• Then file a claim request with your insurer via call or mail. You would need to attach certain documents to initiate the process.
• Once your request is verified and approved, you will get the amount.

Conclusion

Loss or delayed baggage can completely ruin your trip even before it starts. So, whether you are a travel junkie who loves visiting exotic locations or a businessman travelling for important meetings or a student who would be studying at a foreign university, travel insurance is a useful asset to have. HDFC ERGO offers travel insurance plans that cover you against financial losses occurring due to hospitalization because of any kind of injury, sickness, or accident, loss of passport and other important documents, missing connecting flights, or cancelling a trip owing to extreme weather conditions. We also offer insurance amount to the nominee in case of accidental death of the policyholder. When buying a policy, ensure that it has adequate coverage to meet most mishaps.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.