Baggage Insurance

What is Baggage Insurance?

Baggage insurance is a type of insurance that protects the accompanied baggage of a traveller from any unforeseen damage or loss. The term ‘baggage’ refers to the personal items or goods belonging to the insured traveller that they carry during their travel. It provides comprehensive coverage to the accompanied baggage from any loss due to unforeseen events such as fire, riots, strikes, accident and terrorist activity.

A baggage insurance policy also protects the insured’s check-in baggage from any damage or loss caused during the flight or by the airline staff. It also covers any delay in the arrival of the checked-in baggage by the airline in the form of reimbursement of any expenses incurred on essential items such as clothes, toiletries, medicines, etc. In fact, some travel insurance policies also protect the additional baggage purchased during the trip.

Baggage insurance can be purchased as part of a travel insurance policy as well as a standalone insurance policy. The traveller can decide on the basis of their requirements and thus, ensure a stress-free trip.

Why Choose Baggage Insurance Policy?

A baggage insurance policy is one of the smartest ways to ensure smooth travel. Here are some of the benefits of buying a baggage insurance policy:

• Compensates the Lost Luggage Cost-In case the insured loses their baggage or its contents during the trip, a baggage insurance policy compensates the cost of the missing items or the cost of the lost luggage as per the situation.
• Reimburses the Incurred Expenses-In case of any extra expenses on buying essential items such as toiletries or clothes because of baggage delay/loss/damage, the same will be reimbursed under this insurance policy.
• Travel Stress-Free -With a baggage insurance policy one can travel stress-free, be it a domestic trip or an international trip. This is because any damage or loss of luggage will be covered by the policy.

These are just a few benefits that allow travellers to focus entirely on enjoying every moment of their trip.

Features of Baggage Insurance Policy

Here are some of the features of a baggage insurance policy:

• Comes as a part of travel insurance as well as an individual policy
• Available for both domestic and international travel
• Covers additional baggage purchased during the trip
• Offers reimbursement for medical supplies, toiletries and necessary supplies in case of theft or loss
• Protects valuable items through specific item insurance plans

Baggage Insurance Policy Eligibility Criteria

Any person who is travelling outside their city of residence can buy a baggage insurance policy to ensure the safety of their valuable items. This policy can be purchased by any person for varying duration, which may be 15 days or up to 9 months depending upon the insurer.

The traveller is eligible to buy a baggage insurance policy for their checked-in luggage as well as additional luggage, given the policy covers them.

Types of Baggage Insurance

A traveller needs to find an insurance policy that fulfils their travel needs. To fulfil the requirements of different kinds of travellers, baggage insurance in India is of three types:

Single Trip Baggage Insurance

This type of baggage insurance policy covers any damage to the accompanied luggage of the insured traveller for a single trip. It begins with the start of the trip and expires as soon as the trip ends. This type of baggage insurance is suitable for people who travel occasionally, mostly as tourists.

Multi-Trip Baggage Insurance

This type of baggage insurance policy protects the luggage against any unforeseen damage or loss for multiple trips. The exact number of trips that are covered under this policy depends on the terms and amount of premium paid by the insured traveller. This type of travel insurance is suited for frequent fliers and business travellers.

Baggage Insurance for a Specific Item

This kind of baggage insurance policy covers a specific item that has been insured by the traveller from any loss or damage throughout the duration of the trip. It is made for people who travel with expensive and valuable items and any damage or theft to such items can lead to huge financial loss. For instance, travellers can get their laptop, professional camera, musical instruments, etc. insured under this type of baggage insurance policy.

Things to Consider Before Buying Baggage Insurance

There are certain crucial things that you should consider before buying a baggage insurance policy:

• Make sure to have a list of all the items being carried in the luggage. This is important at the time of filing a claim with the insurance provider as a list of the contents of the loss will be required.
• In case there is loss of baggage, the insured will be compensated up to the fixed sum insured amount to the maximum. Therefore, make sure to choose a sum insured amount that adequately covers the cost of the luggage/items.

Coverage Under Baggage Insurance

Before buying a baggage insurance policy, it is important to know the extent of coverage offered. Take a look at some of the most common inclusions of a baggage insurance policy:

• Loss or Damage to Accompanied Luggage- A baggage insurance policy covers any loss or damage caused to the luggage carried during a domestic/ international trip. Accompanied luggage can be of two types:
  • Travel Bags- Travel bags refers to suitcases, trunks, duffel bags, etc. which are used to carry personal items while travelling. Any loss or damage caused to these travel bags during the journey will be covered under the baggage insurance policy.
  • Carry On/Hand luggage-Carry-on luggage or hand luggage refers to the smaller items such as purses and laptop bags that are not submitted with the airline staff as check-in baggage. Any loss or damage caused to the carry-on luggage is not covered under a baggage insurance policy.
• Loss or Damage to Contents of Travel Bags-In case any damage is caused to the contents of the travel bags or their contents are stolen, the insurance provider will cover the cost if the traveller has a valid baggage insurance policy.
• Delays in Delivery of Check-in Baggage-There are times when the delivery of check-in baggage is delayed by the airline staff. In such cases, the insurer will reimburse any expenses that you incur on buying essential items such as clothes, medicines, and toiletries.
• Loss or Damage to a Specific Item-In case any loss or damage is caused to a specific item that has been insured under a baggage insurance policy, the insurer will reimburse the cost of the item.
• Loss or Damage to Additional Baggage-A baggage insurance policy will also cover any damage or loss incurred on any additional baggage that has been purchased during the journey.

What's Not Covered Under Baggage Insurance?

There are a few situations where no reimbursement or compensation will be provided under a baggage insurance policy. Take a look at some of the exclusions:

• Any loss or damage caused to consumable goods will not be covered under a baggage insurance policy
• In case a loss or damage to the baggage is caused due to war, an act of war or a nuclear explosion, it will not be covered under this policy
• Any damages or losses caused to cleaning, bleaching, renovating or repair work is not covered under a baggage insurance policy
• If there is any consequential loss of an item, provided the item was already damaged before the start of the trip, it will not be covered by the insurer
• A baggage insurance policy also does not cover any damage or loss of money, manuscripts, securities, deeds, stamps, bonds and certificates
• Any loss or damages caused to an item that was not a part of the luggage when the trip started
• If there is any breakage or loss of any fragile items like paintings, glass crockery, sculptures, musical instruments, binoculars, camera lenses, etc. during the journey, it will not be covered under this policy
• If there is damage or loss of valuables such as jewellery, watches, precious stones, fur, etc., its cost will not be compensated by the insurance provider
• In case an item is damaged or lost by the carrier during transportation, its cost will not be covered by a baggage insurance policy
• Any loss or damage caused to the baggage or an item that does not belong to the insurer or their family members will not be covered under this policy
• In case an item is lost due to the wrong misplacement, its’ cost will not be covered by the insurer
• If an item is lost while it was kept unattended in a vehicle with the windows down, its cost will not be indemnified by the insurance company
• In case an item or baggage is confiscated or detained by the customs officials or other authorities, no compensation shall be paid to the traveller
• Any loss or damage caused due to electrical or mechanical breakdown shall not be covered under a baggage insurance policy

Baggage Insurance Claim Process

In case of a loss or damage to the insured’s luggage or their check-in baggage has been delayed by the airline, the insured will have to file an insurance claim. Following are the steps to be followed while registering a baggage insurance claim:

• Inform the insurance company or travel assistance provider about the loss or damage of the baggage. This can be done through the phone numbers mentioned in the policy document or by visiting the nearest branch of the insurance company
• Submit the list of items lost or damaged
• A representative of the insurance company will verify the details of the claim with the insured as well as the airline (in case the baggage was lost by the airline or during an in-flight mishap)
• In case the claim is found to be genuine, the claim amount will be given to the traveller
• However, if the claim is found to be unsatisfactory, it will be rejected by the insurance company

How to Choose/Buy Baggage Insurance?

In most cases, baggage insurance is provided under travel insurance plans. However, if planning to buy baggage insurance for important belongings then the following tips will come in handy:

• Opt for a policy with a suitable sum insured; in case of theft or loss, the policy's sum insured should be able to compensate for the losses.
• Ensure the coverage that is being offered; most insurers don't compensate for the loss of hand-baggage or cabin luggage.
• Keep in mind the deductibles before buying baggage insurance; the insured will be subject to deductibles before they are reimbursed for their lost baggage.
• Confirm the maximum reimbursement limit of the bag or articles of the bag before finalising the policy
• Don't forget to compare different types of baggage insurance plans to find the right plan.
• Go for online shopping to save money and time on the baggage insurance premium, as no distribution costs are increasing the price of the insurance.
• Make sure to check the insurer's claim settlement ratio, reviews by past users and time taken to settle claims before buying their policy.

Why Buy from Policybazaar?

With so many travel insurance companies in India offering baggage insurance, it may be a difficult choice to buy insurance plan. Through Policybazaar.com, travellers can easily compare and know more about the plans without individually visiting each insurer’s website.

What is more, the details of the plan and its benefits are factually reported so that the user can freely weigh their options and go for a plan that suits them.
Furthermore, thanks to Policybazaar’s user-friendly website, customers can buy a policy within minutes without wasting a lot of time. All this is done online and hence helps in saving paper too, making it a quick, paperless and convenient experience.