Travel Insurance Remains Underused Despite Surge In Lost Luggage: Expert Insights

What does the expert have to say?

Ade Adesokan, an expert in the insurance sector, has expressed their concern about how the poor uptake of travel insurance by passengers has left them exposed to financial losses as a result of unanticipated events, such as baggage losses, flight delays, etc. Although Ade primarily talks about this subject in regard to Nigeria, this problem is also quite evident in other places, including India. He mentions, many are simply unaware of their rights when faced with such challenges, like flight delays, missing baggage, etc., which leads to passengers not being able to access the right compensation.

If you take a general glance in terms of Indian travellers, you will find countless travellers being clueless about what to do and how to get adequate compensation when faced with similar scenarios. The lack of proper awareness is responsible for passengers being affected by this across borders. However, getting to know that is as simple as clicking a few buttons online.

If you turn towards the directions set by the Ministry of Civil Aviation under the Government of India, you will find the essential details regarding your rights and claim compensation at the airport. You can claim damages from the airlines only when the event that caused damage, delay or loss occurred on board the aircraft or during the time when the checked baggage was in the charge of the carrier.

For reference, in case of international carriage, the liability is limited to 1,131 SDR/passenger for loss, delay or damage to baggage. In case of damage, loss or delay of cargo, the liability is limited to 19 SDR/kg. SDR here stands for Special Drawing Rights, with 1 SDR being equal to 1.39 USD as of 7th May, 2025.

In case of other airport-related inconveniences, such as flight delays, passengers can exercise a certain set of rights. For example, if, after checking in on time, the airline expects a delay under the specified categories, you can get free of charge meals and refreshments, an alternate flight within 6 hours or a full refund, free hotel accommodation, etc.

One of the aspects where Adesokan pointed his finger is the voluntary nature of travel insurance. Being optional, many skip picking travel insurance when going on a trip unless it’s compulsory to have for visiting their travel destination. And many of those to take travel insurance are simply unaware of what benefits it offers.

Does travel insurance cover baggage loss and flight delay?

Yes, it does. One of the key advantages of having domestic or international travel insurance is that it covers several pesky, unfortunate events that can affect the trip momentum, including flight and baggage-related inconveniences. Flight delays or cancellations are becoming much too common and are beyond one’s control.

It can be annoying to deal with such a situation without the financial backing of a travel insurance policy. With travel insurance, essential expenses that arise from such setbacks are covered. Similarly, loss or delay of checked-in baggage can throw your trip off its planned course.

Thankfully, with international travel insurance, losses and unexpected expenditures due to such events are covered. This coverage is seen across different plans, including individual, family, frequent flyer and senior citizen travel insurance plans.

It is better to be safe by investing in travel insurance than to be sorry, as unfortunate events can happen to anyone at any time.

What else does travel insurance cover?

Loss or delay of checked-in baggage and flight delay or cancellation are just a fraction of what the coverage under a standard domestic or international travel insurance looks like. Some of the things that the policy may also cover are;

– Expenses related to medical emergencies: Emergency medical expenses like hospitalisation, orad ambulance cost, room rent, OPD treatment, medical repatriation and emergency evacuation, etc., are covered under international travel insurance.

– Emergency dental expenses: Expenses related to dental emergencies are also covered under the travel policy.

– Missed flight connection: Sometimes, things don’t go as planned. If you are worried about missing flight connections, don’t worry. In such cases, the policy covers expenses incurred on alternate flight booking and accommodation.

– Personal liability: While travelling, if you find yourself responsible for damage/loss to a third party, the policy will help you promptly compensate the affected party.

– Loss of IDL & passport: While on the trip, losing important documents can be troublesome. If you lose your international driving license or passport during your travel, the international travel insurance will reimburse the costs required to obtain a duplicate or new passport and/or IDL.

– Theft of baggage and its contents: Losing your baggage and its contents can be devastating for the rest of the trip. In such cases, proper compensation is offered to cover the losses.

Why is travel insurance necessary, and how can to utilise it?

Travellers must know and understand their rights and the coverage scope of their international travel insurance in order to get fair and proper compensation if faced with hurdles like flight delay and cancellation, loss or delay of checked-in baggage, etc. Here are some key reasons why travel insurance is necessary and how it should be utilised.

Instances of missed flight connections, loss of checked-in baggage, cancellation and delay of flights, etc., are common and can happen to anyone. To protect your trip and finances from such unexpected costs and hassles, investing in international travel insurance is a must.

Besides various journey and baggage-related hassles, the coverage under travel insurance also covers emergency medical expenses. This is a must-have, especially for senior citizens planning on travelling internationally. Curated senior citizen travel insurance plans are readily available for them.

While purchasing the travel insurance, make sure to go through the policy details carefully. You need to understand what it covers and how you can claim it, and under which conditions. This will make your travel experience more seamless if faced with the unexpected, which is its intended purpose.

Conclusion

Experts believe that more awareness of the rights of passengers at the airport and strengthened enforcement by authorities to actively oversee compliance with travel insurance in aviation can minimise the issues of underutilisation of travel insurance. From individual travel insurance to senior citizen travel insurance, plans are available for all kinds of travellers and trips. Just make sure to understand how to put them to proper use.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

(Note: This article is written by the Brand Desk.)