Baggage Insurance: Meaning, Types, Coverage & How It Works
The last thing you want when on a vacation is to realise your baggage is missing. It is a situation that is not only financially stressful but can potentially put your holiday to waste. To combat your loss due to delay or loss of your luggage, baggage insurance under an international travel medicine insurance plan is highly beneficial.
Therefore, it is necessary that you find a good travel insurance plan with adequate coverage so that you can financially overcome such a situation.
Read on to understand baggage insurance in detail and how beneficial it can be during your overseas travel.
Baggage Insurance - Meaning
Baggage insurance can be described as a significant part of a travel insurance policy that offers financial coverage for the delay or loss of your personal belongings and luggage when on an international trip.
This insurance from insurers like TATA AIG ensures that you are financially compensated for delayed or lost items in case of theft or a mishap. It further ensures that you can replace your necessary belongings without having to bear unnecessary expenses.
As part of travel insurance cover, baggage insurance coverage extends to checked-in luggage that remains in the common carrier’s custody. With this coverage, you no longer have to worry about your luggage during your overseas trip.
Baggage Insurance - Types
Single-trip
This luggage insurance type offers coverage for baggage for one trip. It is best for individuals who travel occasionally rather than frequently. The coverage is available from the beginning to the end of your journey, and any delay or loss of luggage during this time is compensated by your insurer.
Multi-trip
This type of travel insurance for luggage and personal belongings specifically caters to those who need to fly frequently outside the country. It offers coverage to your luggage no matter how many trips you undertake within a specific period, generally a year. With this cover, you do not have to invest in separate policies for each overseas trip, making it both cost-efficient and convenient for you as a frequent traveller.
Specific Items
This baggage insurance type offers financial coverage to specific items, generally of high value, like jewellery, electronics, etc. If these high-value items are damaged or lost, you will receive proper compensation based on the value of these items.
Coverage Under Baggage Insurance
Financial protection of your checked-in baggage is what your lost luggage insurance offers. Unexpected delays in receiving your luggage due to a lack on the part of the airline can cause you to incur additional expenditures until your luggage arrives. However, with this insurance coverage, you will be reimbursed for the expenses you have to additionally incur, like purchasing essential items that are inside your luggage (which is delayed).
If your luggage is stolen or lost, you will receive compensation for the items inside your luggage so that your trip is not affected due to the loss of your luggage. However, compensation for the items inside your luggage will be provided according to the policy’s terms and conditions.
It is also important to remember what baggage insurance for travel does not cover. This policy does not cover high-value personal belongings like electronics, jewellery or cash unless specified. Moreover, coverage is also not provided for partial damage or loss of personal belongings within your luggage. You cannot receive coverage if your luggage is lost due to negligence on your part as a policyholder.
How Baggage Insurance Works
The moment you invest in baggage insurance, your luggage is protected financially from delay or loss due to unexpected situations.
- When an incident occurs, you report it to the authorities, such as the travel service provider or airline, to obtain a Property Irregularity Report (PIR).
- The next step is to contact your insurer and file a claim with the necessary documents, including the PIR, filled-out claim form and receipts.
- Your insurer will assess your claim and provide compensation according to the coverage limits and policy terms.
Advantages of Opting for Baggage Insurance
Baggage insurance offers a number of benefits that include:
- Financial protection of your luggage from loss,
- Compensation for replacement of items lost,
- Provision of expenses that you have to additionally incur if your luggage is delayed.
Conclusion
Your budget for an international trip should include the cost of a good travel plan with sufficient coverage, including baggage insurance. Without this safety net, you will be left financially and mentally drained, which will adversely affect your overall journey.
You may even have to return without being able to enjoy your vacation. So, plan accordingly and select the right travel plan with luggage insurance included in the policy.
