Term of the week. Baggage loss cover

Baggage loss cover is one of the many covers offered under travel insurance by insurance companies such as ICICI Lombard and Bajaj Allianz. A policyholder can claim for loss of baggage if he/she has taken travel insurance and the baggage is lost or damaged during travel, while in the custody of the carrier. Only checked-in baggage is covered by travel insurance. Insurers will not compensate for the loss of any valuables (such as jewellery and money) inside the baggage. For instance, consider Bajaj Allianz’s Travel Elite (platinum) cover. For the total cover of $5,00,000, maximum cover for baggage loss offered is $1,000.

Note that, insurance companies’ liability, in general, is restricted to a maximum of 50 per cent of the sum assured (for one lost baggage). In addition, some insurers have sub-limits and deductible also.

If compensation is already received under the cover – ‘delayed baggage cover’ or if any payments received from the airlines, the insurance companies reduce your claim amount to that extent.

Baggage loss claim will be processed only if a policyholder submits property irregularity report, confirmation of baggage loss statement from airlines, copies of boarding pass/ticket and other documents as requested by the insurance companies.

Note that if the lost baggage is retrieved, the policyholder must repay the amount received.

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