Lost luggage payouts increase

Lost luggage payouts increase

By Samantha Washington
BBC Radio 4’s Money Box

Airline passengers will now receive more compensation for delayed, lost or damaged luggage, following new international rules.

Under the newly ratified Montreal Convention, payouts will be related to the value of the goods, and passengers can receive compensation from airlines of up to £800.

The legislation applies to all flights departing or arriving in any of the 54 countries that have signed up.

Previously, the Warsaw Convention awarded passengers only £12 per kilogram of luggage lost or damaged. This cost guideline was set in 1929.

We are concerned with the practical implications

James Freemantle, Air Transport Users Council

For passengers such as BBC Radio 4’s Money Box listener Andrew, the previous rules seemed hopelessly outdated in compensating him for his stolen digital camera.

He told the programme:

“As the camera – that had cost me £600 – was weighing less than one kilogram, British Midland offered me £12.78. It was insulting.”

Proof of purchase

A spokesperson from the Association of British Travel Agents said the new rules are a “welcome improvement”. But travellers should not relax all caution when handing over their bags.

Industry Affairs Advisor at the Air Transport Users Council, James Freemantle has concerns over whether or not airlines will actually pay up.

“We are concerned with the practical implications,” he told the programme.

This is going to cause arguments between passengers and airlines

Mr Freemantle

“Airlines are likely to want to have proof of purchase of items or bags that have been lost or stolen. This is going to cause arguments between passengers and airlines.”

Many passengers will simply not have receipts for the contents of their bags, which would make it difficult to get compensation for clothes, toiletries and other everyday items.

The advice from Mr Freemantle is to keep receipts for any item that you buy to take away with you.

Travellers are however more likely to keep receipts for valuable items. But in practice, Mr Freemantle said people could still end up with a dispute.

“Airlines may try to say that they are not liable for valuable items. But, the legislation makes no exceptions, therefore they are liable for items such as cameras,” he said.

In the event of such a dispute, the airline would be contravening the Convention and passengers should contact the Air Transport Users Council.

Making a claim

One bag in every 100 goes missing. If it happens to you the advice is to report it immediately at the lost baggage desk. Any damage would also be inspected and noted there.

Passengers are then required to fill in a Property Irregularity Report detailing the extent of loss or damage, and the value of goods affected.

BBC RADIO 4’s MONEY BOX
The programme was broadcast on Saturday, 3 July, 2004

Programme information

Only once this form is handed in have you made a claim. You are likely to need to provide proof of purchase for all items that you claim for.

If the luggage simply does not arrive, a claim will only be made for delayed baggage at that point.

Belongings are not officially “lost” until 21 days have passed without them being returned. Once it is declared “lost”, you then have seven days to submit a claim.

What happens next remains to be seen. With margins becoming narrower in an increasingly competitive industry, the additional cost will be hard for airlines to absorb.

While the Montreal Convention is undoubtedly an improvement, Mr Freemantle recommended that all travellers take out insurance that specifically covers for baggage loss or damage.

http://news.bbc.co.uk/1/hi/programmes/moneybox/3862749.stm