Recently, an incident with Indigo Airlines has drawn attention to a problem that can be quite distressing for any traveller – lost luggage. A passenger’s bag, which contained items worth Rs 45,000 along with essential documents like a PAN card and a 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, almost a month after the bag went missing, IndiGo offered the passenger compensation of just Rs 2,450. Handa expressed his frustration on Twitter: “About a month later, IndiGo has again offered ‘compensation’ of Rs 2,450. It’s ridiculous. The bag alone would cost more than that. Apparently, there is a rule that states that the airline is liable for a maximum of Rs 350 per kilo in case they lose the bag. That’s just adding insult to injury.”
Handa urged IndiGo to resolve the issue, saying that “Rs 2,450 will not fix it.” He later added that a representative from IndiGo’s social media team had reached out to them and promised that they would look into the issue.
Losing your belongings while traveling can be quite distressing. Here is a guide on what you can do if you find yourself in this situation:
According to the General Directorate of Civil Aviation (DGAC):
Check the airline’s liability: Find out what the airline is responsible for if your luggage is lost, damaged or delayed.
Contact the airline immediately:If your luggage is lost, be sure to report it to the airline and obtain a Baggage Irregularity Report (PIR) before leaving the airport.
Submit a written complaint: Follow up with a formal written complaint to the airline.
Understanding Compensation RulesThe airline is required to compensate you under the Air Transport Act 1972.
So what exactly does the law say about lost luggage?
Deepika Kumari, partner at King Stubb & Kasiva, solicitors and barristers, explains: “The Air Carriage Act 1972, which incorporates international provisions of the Warsaw Convention, governs the rights and obligations of airlines and passengers in relation to air carriage, including lost baggage. Under this Act, an airline is liable for loss, damage or delay of checked baggage while it is in its custody. However, there are limits to this liability unless you have declared a higher value for your baggage at the time of check-in and paid any additional charges. The Act makes the airline liable for the period of carriage, including the time your baggage is in its custody, whether at the airport or in transit.”
Kumari elaborates further: “As per Rule 22 of the Third Schedule to the Air Transport Act, 1972, the airline’s liability for lost baggage is limited to 1,131 Special Drawing Rights (SDR) per passenger, unless the passenger has made a special declaration of the value of the baggage at the time of booking and has paid an additional fee for the same.”
The SDR, as 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 is typically between Rs 100,000 and Rs 120,000, depending on the current value of the SDR.
Conditions of compensation
In order 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 did not declare the value of your baggage at check-in, compensation is subject to the SDR limit. However, if you made a value declaration and paid an additional amount, compensation may 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 also provides for this aspect.
Nidhi Singh, Partner at IndiaLaw LLP, explains: “The passenger has the right to file a civil suit for damages in a civil court, depending on several factors.” These factors include:
In the case of international carriers referred to in the first and second annexes: the claim may be brought before the court of the carrier’s habitual place of residence, where it has its principal place of business, or before the court of the place of destination. However, in the case of international carriers referred to in the second annex, the claim may only be brought in the territory of one of the High Contracting Parties which are signatories to the Warsaw Convention.
For other carriers in the Third Annex: An action for damages may be brought in the territory of the States Parties that are signatories to the Montreal Convention of 1999. This may 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 concluded or at the place of destination.
Singh adds, “Furthermore, since the passenger has to pay for the airline’s services, he can be considered a consumer under the Consumer Protection Act, 2019. Therefore, a consumer complaint can be filed with the relevant consumer commission for deficiency in service.”
On the other hand, Haroon Asrar, Partner, Solomon & Co, said, “The affected passenger can also register his/her complaint on the Air Sewa portal launched by the Directorate General of Civil Aviation. Air Sewa is an initiative of the Ministry of Civil Aviation (MoCA), Government of India, which allows passengers to lodge complaints against airlines.”
Does travel insurance cover lost luggage?
Yes, travel insurance can also come to your aid in case of lost luggage. Deepika Kumari explains: “In addition to airline compensation, travel insurance policies offer specific coverage in case of lost luggage.” Here’s what’s typically covered:
Compensation for lost luggage: This could be up to the amount insured under the policy, which could exceed the airline’s legal liability.
Refund for emergency purchases:If your luggage is delayed or lost, your insurer may reimburse you for the cost of essential items such as clothing and toiletries purchased during the delay.
To file a claim, you will need to provide supporting documents such as proof of booking, a Baggage Irregularity Report, and more.
However, Asrar warns: “It’s important to check your policy’s exclusions as some items, such as electronic devices, may not be covered. Some policies also cover the cost of essential items if your luggage is delayed.”
Below are some examples of travel insurance plans that cover lost luggage, according to insurance company portals:
1. HDFC ERGO Travel Insurance – Gold Plan
Plan Amount:Rs 5,000 – Rs 10,000 depending on destination and duration.
Coverage: It covers loss of checked baggage up to Rs 50,000. It also includes medical emergencies, trip cancellation, passport loss and personal accident coverage.
2. Tata AIG Travel Guard
Plan Amount:Rs 1,500 – Rs 7,000 depending on destination and duration.
Coverage:It offers compensation for loss of checked 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 the coverage selected.
Coverage:It covers loss or theft of checked baggage up to Rs 40,000, along with coverage for medical emergencies and personal accidents.
4. ICICI Lombard Travel Insurance
Plan Amount: Rs 1,800 – Rs 9,000 depending on the travel period and destination.
Coverage:It covers total loss of checked 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 depending on the coverage selected.
Coverage:Covers loss of checked baggage up to Rs 50,000, with additional benefits for medical expenses and personal accidents.
6. SBI Travel Insurance
Plan Amount: Rs 2,000 – Rs 6,000 depending on the duration of the trip and destination.
Coverage:Compensation for loss of checked baggage up to Rs 30,000, as well as emergency medical expenses and trip cancellation.
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