Baggage Insurance is a non-medical option that prevents you from experiencing certain inconveniences, arising from the loss or destruction of your properties during flights and throughout your holiday abroad, only if you include it in your insurance policy.
Baggage Insurance protects the insured from risks associated with loss or damage of personal belonging to theft, fire or disasters (which could be natural or manmade), while you are out of your country of residence. Baggage include personal properties of the insured.
The coverage of reasonable expenses resulting from the loss or damage of properties like cash, tickets, credit cards, driver's license, securities and passport, depends on:
- Terms and conditions stated in your insurance policy document.
- Inclusion of the baggage Insurance as one of the additional options in your insurance policy.
This insurance is valid from the time of departure to the time of return to your country of residence. The probability of experiencing loss or theft of baggage during your trip exists, and these situations will be covered by your insurance plan, if you include the baggage insurance.What Items may be covered by your Baggage Insurance Policy?
If the Baggage Insurance option is included in your travel insurance plan, the following items below will be covered in cases of theft, fire or disaster:
- Non-commercial Electronic Equipment.
- Credit cards.
- Driver’s License.
- Clothes and shoes.
- Non-professional musical Instruments.
- And some other accessories omitted in this section. Therefore it is recommended that you inquire about these items from your insurer before travelling.
What Items are not covered by your Baggage Insurance Policy?
Although, Baggage insurance covers loss of your properties, but there exist some exceptions to items that could be covered during your time abroad. And these properties include:
Electronic equipment of any kind, which are intended for commercial use.
Motorized equipment like bicycles.
Antiques or photo.
And some other accessories omitted in this section. Therefore it is recommended that you inquire about these items from your insurer before travelling.
What limits are applicable to your Baggage by your Insurance?
This section addresses issues concerning the extent to which your properties are covered in cases of loss or destruction.
- Loss of your baggage and electronic equipment to theft from a locked home or safety box abroad, will amount to compensation that is equivalent to the insured sum. While items like securities, cash, tickets and passports will receive 10% of the insured sum in the aforementioned cases.
- Theft of your Baggage and electronic equipment from boot or locker of locked vehicles will amount to a compensation value that is equivalent to the insured amount. Whereas, theft of items such as cash, tickets, passport and securities will amount to10% of the insured sum.
- Documented loss or theft of checked baggage will be compensated based on an issuance of proof. On the contrary, loss of cash, tickets security and passport may not be covered.
- Theft of an insured’s property without effective supervision will not be covered.
- Your insurance company will not be responsible for the loss of baggage, electronics, cash and other documents resulting from omission or negligence of the insured.
- The Insurance Company will not be held accountable for the loss or destruction of properties transported separately to the insured destination.
- Minor damages sustained at the exterior part of the baggage (like scratches, dents or strains) will not be covered by the Baggage Insurance.
- The loss of properties due to petty theft involving unimportant properties will not be covered by the insurance plan.
How compensation is calculated for the loss or damage of the insured’s valuables?
- The insurance shall reimburse the replacement cost of new items, provided the covered items are documented as less than two years old. On the contrary, the insurance reimburses the cost of replacement for clothes that are less than a year.
- If the items are old, fairly used or damaged, their individual compensation will be equivalent to the cost of a comparable new products minus (-) the items’ depreciation value. This is due to deterioration of these items over a long time.
- The insurance company may either repair a damaged item or pay an amount that is equivalent to the cost of repair.
- Insurance shall bear the cost of replacing tickets, credit cards, driver’s license, securities and passports, but it won’t pay compensation for the time involved in replacing these items.
What is the limit to what the insurance can cover?
- You should always beware of the fact that, your insurance will only compensate the loss and destruction of Baggage which were handled and placed safely both during your flight and period of time spent at the destination country.
- Reimbursement of a single expensive property may not exceed 50% of your initial insurance sum. And as such, the maximum reimbursement for photo equipment or jewelry could amount to 25% of the insured sum.
What you should you do in cases pertaining to baggage loss and damage?
This section suggests the underlying actions in response to baggage loss and damages:
- Report cases of theft or robbery of your baggage to the nearest police authority immediately after such occurrence.
- If reasonable exceptions prevent you from reporting to the police, notify your insurance company immediately by narrating the exact event through phone call or electronic mail.
- File your claims by filing the claim form with details concerning the lost baggage.
- A replica of the police report must be presented and submitted to your insurer, together with your claim form.
- It is important to include a Baggage Insurance in your travel insurance plan.
- Baggage Insurance covers the expenses arising from the loss or destruction of an insured’s properties to thieves, fire or disaster.
- In general, you Insurance Company will cover your properties, provided these properties were safely kept. They will provide coverage for the loss of tangible items required to sustain you throughout your stay abroad. These items include passport, cash, clothing and other items enumerated in your baggage insurance policy.
- Your insurer will not be responsible for loss or damage of motorized equipment like bicycle and other equipment not covered by your insurance policy.
- Always notify the police or local authorities in cases of loss or damage.
- Present your claims and police report to your insurance company.
- Consult your insurer for more details about any arising doubt. Proper mastery of your insurance policy will enable you to inquire about issues in the right manner.