Etihad Airlines. Photo: Shutterstock
On September 17, 2024, Etihad Airways was ordered to pay Rs 75,000 as compensation and legal expenses to a passenger who lost more than Rs 30 lakh in cash and valuables after the airline lost her hand luggage. This incident occurred on a 2016 flight when the traveler’s luggage went missing during a stopover in Berlin, leading to a consumer case against the airline at the Delhi Consumer Disputes Redressal Commission.
What went wrong?
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A traveler flying from Sweden to India, with a stopover in Berlin in 2016, was told by a flight attendant in Berlin that her carry-on luggage was too big for the cabin and assured her that it would be returned to her in Delhi. However, upon reaching Delhi International Airport, his luggage was missing. Although it was eventually returned, the passenger discovered items were missing from the bag, including cash and gold.
The passenger claimed that in the bag were valuables worth Rs 30 lakh, including Rs 24 lakh in Swedish crowns, a gold chain and a locket weighing 30 grams, a Rado wristwatch, Sony headphones and high-end clothing. Marks and Spencer range.
How did the airline respond?
Etihad Airways denies all liability for the loss of valuables in checked baggage.
Etihad Airways, in its defense before the Delhi State Commission, claimed that the luggage in question was treated as checked luggage, not hand luggage, and was therefore not responsible for the loss of valuables. The airline’s legal team cited IATA’s General Conditions of Carriage, which limits its liability to items declared in checked baggage, according to a report by The Times of India.
The airline also pointed out discrepancies, stating that the incident occurred with Air Berlin staff and not Etihad staff, as the first leg of the trip from Sweden to Berlin was operated by Air Berlin. “The plaintiff’s claims are based on mismatched facts, as they involved the Air Berlin crew, not Etihad,” Etihad’s legal team said.
What was the commission’s verdict?
Delhi Consumer Disputes Redressal Commission orders limited compensation
After considering the details, the Delhi Consumer Disputes Redressal Commission ordered Etihad Airways to pay a total of Rs 75,000 as compensation and legal expenses. The commission found a deficiency in the service but ruled that there was no compensation for the lost items, since the passenger did not declare them during check-in.
The commission noted that the complainant did not declare the cash and jewelery to the customs authorities either at Gothenburg airport in Sweden or at Delhi international airport, which was a crucial factor in the ruling.
Lessons to learn:
Passenger responsibilities
“Under the Air Carriage Act, 1972, airlines have limited liability for checked baggage unless passengers declare a higher value at the time of check-in,” Deepika Kumari, partner at King Stubb &, told Business Standard. Kasiva, Advocates and Attorneys.
He added that travelers should ensure they accurately declare any valuables in their luggage. Some of the measures that passengers can take in similar situations are:
Declare all valuables: When transporting high-value items, declare them to the airline and customs authorities at both the point of departure and arrival.
File a complaint promptly: Immediately report any loss or damage to your luggage to airline staff at the airport.
Document all interactions: Maintain detailed records of airline communications and related documents for future reference.
Consider travel insurance: Travel insurance policies can provide additional protection in the event of lost or delayed luggage.
Travel insurance options for lost luggage
Several travel insurance plans offer coverage for lost luggage. Here are some options provided by Policybazaar:
1. HDFC ERGO Travel Insurance – Gold Plan
Covers loss of checked baggage up to Rs 50,000.
Includes medical emergencies and trip cancellation.
2. Tata AIG Travel Guard
Provides compensation for loss of checked baggage up to Rs 50,000.
Covers emergency medical expenses and trip interruption.
3. Religare Travel Insurance – Explore Plan
Covers loss or theft of checked luggage up to Rs 40,000.
Offers coverage for medical emergencies.
4. ICICI Lombard Travel Insurance
Covers total loss of checked baggage up to Rs 50,000.
Includes medical expenses and trip cancellation benefits.
Steps to follow if checked luggage is lost
As per the guidelines of the Directorate General of Civil Aviation (DGCA) of India, passengers should follow these steps if they lose their luggage:
1. Report immediately: Notify airline staff or ground staff of missing items as soon as you notice the loss.
2. File a written complaint: Make sure you receive written acknowledgment of receipt of your complaint from the airline.
3. Contact customer service: Follow up with airline customer service if the issue remains unresolved at the airport.
4. Compensation Eligibility: Compensation may be available if the airline is found responsible for the loss.
5. Escalate if necessary: If the airline does not respond to your complaint, please forward it to the DGCA using the AirSewa portal.
First published: October 7, 2024 | 10:36 am IS
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