Airline lost your baggage? Know your rights and compensation claim

If you're concerned that airlines might lose your baggage, it's important to know your rights, insurance options, and DGCA rules

Recently, an incident with Indigo Airlines has brought attention to a problem that can be quite distressing for any traveller—lost baggage. A passenger’s bag, containing items worth Rs 45,000 along with essential documents like a PAN card and driving licence, went missing. The issue came to light when the passenger’s friend, Ravi Handa, shared the details on X (formerly Twitter).

According to Handa, nearly a month after the bag went missing, IndiGo offered the passenger a compensation of just Rs 2,450. Expressing his frustration, Handa tweeted, "Around a month later, IndiGo has come back offering 'compensation' of Rs 2,450. It is ridiculous. Just the bag would cost more than that. Apparently, there is a rule that the airline is liable for a maximum of Rs 350/kg in case they lose the bag. That is just adding insult to injury."

 

Handa urged IndiGo to resolve the matter, stating, "Rs 2,450 isn't going to fix it." He later added that a representative from IndiGo's social media team had reached out and promised to look into the issue.

Losing your belongings during travel can be quite distressing. Here’s a guide on what you can do if you find yourself in this situation:

According to the Directorate General of Civil Aviation (DGCA):

Check the airline’s liability: Know what the airline is responsible for in case your baggage is lost, damaged, or delayed.

Contact the airline immediately: If your baggage goes missing, make sure to report it to the airline and get a Property Irregularity Report (PIR) before leaving the airport.

Submit a written claim: Follow up with a formal written claim to the airline.

Understand compensation rules: The airline is obligated to compensate you according to The Carriage by Air Act, 1972.

So, what exactly does the law say about lost baggage?

Deepika Kumari, Partner at King Stubb & Kasiva, Advocates and Attorneys, breaks it down: "The Carriage by Air Act, 1972, which incorporates international provisions of the Warsaw Convention, governs the rights and liabilities of airlines and passengers concerning air carriage, including the loss of baggage. Under this Act, an airline is liable for loss, damage, or delay of checked baggage while it’s in their custody. However, this liability has limits unless you’ve declared a higher value for your baggage at check-in and paid the extra charges. The Act holds the airline responsible during the period of carriage, including the time your baggage is in their custody, whether at the airport or in transit."

Explaining further, Kumari adds, "As per Rule 22 of the Third Schedule to the Carriage by Air Act, 1972, the airline’s liability for lost baggage is capped at 1,131 Special Drawing Rights (SDRs) per passenger, unless the passenger has made a special declaration of the baggage's value at the time of booking and paid a supplementary fee for the same."

The SDR, defined by the International Monetary Fund (IMF), is a unit of account whose value fluctuates with currency exchange rates. This means that the airline’s maximum liability usually ranges between Rs 1,00,000 to Rs 1,20,000, depending on the current SDR value.

Conditions for compensation

For you to receive compensation under the Act:

* Your baggage must have been checked in and accepted by the airline.

* The loss or damage must have occurred while the airline had custody or control of the baggage.

* If you didn’t declare the value of your baggage at check-in, compensation is subject to the SDR limitation. However, if you made a value declaration and paid extra, the compensation can exceed the SDR limit up to the declared amount.

Compensation denied

So, what can you do if the airline refuses to compensate you? The law has provisions for this too.

Nidhi Singh, Partner at IndiaLaw LLP, explains, "The passenger is entitled to file a civil case for damages in a civil court, depending on several factors." These factors include:

For international carriers under the first and second schedules: You can file a case in the court where the carrier is ordinarily resident, has its principal place of business, or the court at the destination. However, for international carriers under the second schedule, the case can only be brought in the territory of one of the High Contracting Parties that are signatories to the Warsaw Convention.

For other carriers under the third schedule: You can bring an action for damages in the territory of the State Parties, which are signatories to the Montreal Convention of 1999. This can be done either before the court of the carrier's domicile, its principal place of business, or where it has a place of business through which the contract was made or at the place of destination.

Singh adds, "Moreover, since the passenger is required to pay for airline services, they can be considered a consumer under the Consumer Protection Act, 2019. Therefore, a consumer complaint can be filed before the appropriate consumer commission for deficiency in service."

Alternatively, Haroon Asrar, Partner at Solomon & Co, points out, "The aggrieved passenger can also register their grievance on the Air Sewa portal launched by the Directorate General of Civil Aviation. Air Sewa is an initiative by the Ministry of Civil Aviation (MoCA), Government of India, which allows passengers to lodge grievances against airlines."

Does travel insurance cover baggage loss?

Yes, travel insurance can also come to your rescue in cases of baggage loss. Deepika Kumari explains, "In addition to airline compensation, travel insurance policies provide specific coverage for baggage loss." Here’s what’s usually covered:

Compensation for lost baggage: This could be up to the sum insured as per the policy, which might exceed the airline’s statutory liability.
 

Reimbursement for emergency purchases: If your baggage is delayed or lost, the insurer might reimburse the cost of essential items like clothing and toiletries purchased during the delay.

To file a claim, you’ll need to provide supporting documents like proof of booking, a Baggage Irregularity Report, and more.

However, Asrar cautions, "It’s important to check for exclusions in your policy, as some items, like electronic devices, may not be covered. Some policies also cover the cost of essential items if your baggage is delayed."

Here are some examples of travel insurance plans that cover baggage loss, according to the insurer portals:

1. HDFC ERGO Travel Insurance - Gold Plan

   Plan amount: Rs 5,000 - Rs 10,000 depending on destination and duration.

   Coverage: Covers loss of checked-in baggage up to Rs 50,000. Also includes medical emergencies, trip cancellation, loss of passport, and personal accident coverage.

2. Tata AIG Travel Guard

   Plan amount: Rs 1,500 - Rs 7,000 based on destination and duration.

   Coverage: Provides compensation for the loss of checked-in baggage up to Rs 50,000, along with coverage for emergency medical expenses, trip interruption, and personal liability.

3. Religare Travel Insurance - Explore Plan

   Plan amount: Rs 3,000 - Rs 8,000 depending on coverage selected.

   Coverage: Covers loss or theft of checked-in baggage up to Rs 40,000, along with coverage for medical emergencies and personal accident.

4. ICICI Lombard Travel Insurance

   Plan amount: Rs 1,800 - Rs 9,000 depending on travel period and destination.

   Coverage: Covers total loss of checked-in baggage up to Rs 50,000, along with medical expenses and trip cancellation coverage.

5. Bajaj Allianz Travel Insurance - Travel Elite Plan

   Plan amount: Rs 2,500 - Rs 10,000 based on selected coverage.

   Coverage: Covers loss of checked baggage up to Rs 50,000, with additional benefits for medical expenses and personal accident.

6. SBI Travel Insurance

   Plan amount: Rs 2,000 - Rs 6,000 depending on trip duration and destination.
   Coverage: Compensation for loss of checked-in baggage up to Rs 30,000, as well as medical emergency expenses and trip cancellation.

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