Clarifying 4 myths on baggage insurance
1. My luggage is covered only during the trip to my destination
The term baggage is used by airline companies, rail or road carriers to designate the personal belongings which accompany you during your journey. Throughout your entire trip, your baggage can indeed be delayed, damaged or even lost. Baggage insurance therefore covers in case of loss, theft, damage or delay. Nevertheless, baggage insurance will remain in place throughout your stay at destination. Your personal belongings are insured against a number of risks which could occur, such as a break-in the hotel room or a mugging. For example, the loss or theft of important documents such as passport, driver’s licence, birth certificate or travel visa entitled you to financial compensation for expenses incurred to replace them.
2. Personal belongings are always poorly refunded
Reimbursement levels on baggage insurance varies significantly from one insurance company to another. The perception of poor coverage often comes from baggage insurance which refund limits are below the value of the items that accompany us when traveling. It is important to understand the sub-limits inherent to baggage insurance. In fact, behind the maximum amount of coverage, other provisions can significantly reduce the range of guarantees. This may be the presence of a deductible, a maximum amount per article or even an overall limit for a category of personal items. Usually, jewelry and electronic devices are personal items that have most restrictions in the baggage insurance.
3. The insurer compensates only in monetary form
Baggage insurance provides financial compensation for losses in accordance to the terms and conditions outlined in the contract. It is also necessary to be aware that the insurer reserves the right to repair or replace damaged or lost property with another of the same quality and value. The insurer’s guarantee is limited to the actual value of the goods. However, if it is the baggage registered with a carrier or for missing luggage left under the responsibility of a hotel, the insurer reimburses eligible expenses only in excess of those reimbursable from other sources, such as the hotel’s civil liability.
4. Making an insurance claim for my luggage is complicated
As with medical claim, the insurer will request proof of the damage sustained to the baggage and personal belongings. It is this step that seems unacceptable for the traveler who wishes to assert his right to compensation under the baggage insurance.
If the damage occurs while travelling, the carriers offer a service counter for travelers who are experiencing delays, lost or damage of their property and personal belongings. The transport agents will then give the traveler a receipt stating the damage. It simply is the responsibility of the insured to contact the assistance center for procedure to follow to declare its claim and attach the receipt.
In the event of burglary, theft or wrongdoing, you must notify the police as soon as possible, ideally within 24 hours after the fact and obtain written proof to support the loss incurred. If you do not report to the police the incident, you could lose all rights to the insurance coverage.
For more information on baggage insurance
It is very important to understand the guarantees and specific exclusions of your contract. Check with an Accident and Sickness Insurance Representative about the general conditions of baggage insurance.