Why Trust MoneySmart?Baggage Damage, Loss, or Delay Coverage: Which Travel Insurance Pays the Most?
When traveling abroad, if your luggage is damaged, lost, or delayed, it can cause not only major inconvenience but also significant financial loss. If the responsibility lies with the airline, they should compensate you, but each airline’s compensation amount varies and may not be enough to cover your loss. Therefore, to ensure adequate coverage, it’s best to purchase travel insurance that protects against baggage damage, loss, or delay. So, which travel insurance includes this coverage? And which one offers the highest compensation for baggage damage/loss/delay? MoneySmart breaks it down for you below.
TLDR? Let AI summarise the key points for you!
Travel insurance usually covers financial losses caused by baggage damage, loss, or delay. However, different insurers define “personal belongings” differently, some include mobile phones, cash, or credit cards, while others do not.
The minimum delay time required for compensation is generally 5 to 6 hours. Compensation amounts vary across insurers, ranging from HK$300 to HK$1,000.
If your baggage is damaged or lost, you should immediately report it at the airline’s baggage service counter and obtain a case file number for tracking. If you only report it after leaving the airport, some airlines may refuse to handle your claim.
It’s recommended to take photos of your luggage before departure to prove ownership and its condition. If your baggage is damaged, photograph the damaged areas as evidence for your claim.
Since airline compensation may not fully cover your losses, it’s advisable to purchase travel insurance for more comprehensive protection.
Baggage Delay Coverage: How Much Does Travel Insurance Pay?
Most travel insurance policies on the market cover losses caused by baggage loss, damage, or delay (with the minimum delay requirement generally being 5 to 6 hours). The maximum compensation per incident typically ranges from HK$300 to HK$1,000.
Travel Insurance | Baggage Delay | Delay Hours Requirement |
HK$500 | 6 hours | |
HK$300* | 5 hours | |
HK$1,000 | 6 hours | |
HK$500 | 6 hours | |
HK$500 | 6 hours | |
Blue Cross TravelSafe Plus - Global Diamond Plan (Single-plan Cover) | HK$1,500 | 6 hours |
*HK$300 allowance for every 5 hours of delay, up to a maximum of HK$2,000.
MoneySmart Tip: “Baggage Delay” Only Covers Essential Emergency Expenses |
It’s important to clarify a common misconception: the “baggage delay” allowance does not mean that once your baggage is delayed for the specified hours, the insurer will automatically pay you a lump sum compensation. In reality, most travel insurance policies only cover necessary emergency purchases caused by the delayed arrival of your baggage — such as essential clothing and basic toiletries. Only these related expenses are considered eligible under the coverage. |
Does Travel Insurance Cover Baggage Damage or Loss?
Most travel insurance policies include “Baggage and Personal Belongings Coverage.” This means that if your personal baggage is accidentally damaged or lost during the trip, you may be eligible for compensation. However, not all causes of damage are covered, particularly if the loss or damage is due to your own negligence, the insurer may not provide compensation.
Common covered scenarios include:
Loss or damage caused by theft, robbery, or burglary
Loss or damage caused by an insured accident
Loss or damage caused by mishandling by a public transport operator (e.g., baggage damaged during airline handling)
Since baggage damage is very common, it’s always best to check your baggage immediately upon receiving it. Take pictures of the damage when you identify damage andreport to the airline. Additionally, it’s advisable to purchase suitable travel insurance before your trip to ensure that if your baggage is damaged, you’ll receive adequate compensation — giving you greater peace of mind while traveling.
Travel Insurance | Personal Belongings and Baggage Coverage | Compensation limit per item, per pair, or per set of articles |
HK$10,000 | HK$2,000 | |
HK$15,000 | HK$2,000 | |
HK$8,000 | HK$1,500 | |
HK$10,000 | HK$3,000 | |
HK$15,000 | HK$2,000 | |
Blue Cross TravelSafe Plus - Global Diamond Plan (Single-plan Cover) | HK$20,000 | HK$3,000 |
Not all personal Items are covered by travel insurance
Be aware that not all personal items are covered by every travel insurance policy. While some travel insurance plans include protection for gadgets such as mobile phones and laptops, coverage can vary significantly between providers and tiers of products within the same provider. Certain plans may offer specific protection for electronic devices against theft or accidental damage, but others exclude them or set strict limits on the payout amount. For example, Allianz Gold providers up to HK$5,000 coverage for theft of Mobile Device. Before buying a policy, travelers should carefully review the coverage details, especially if they are carrying expensive gadgets. Always confirm what personal belongings are covered to avoid unexpected losses during travel.
How to Claim Insurance for Damaged Baggage?
1. Report at the Airport If your baggage is unfortunately damaged, it is best to report it at the airline’s baggage service counter before leaving the airport. Usually, you will receive a case reference number to track your claim. If you only file the report after leaving the airport, some airlines may refuse to process it. However, you can still try to submit a claim via email or by completing an online claim form.
2. Submit Proof of Baggage Damage In addition to flight details and the baggage loss/damage report, insurers usually require the following documents:
Purchase receipts of the lost/damaged items
Photos of the items
Amount already compensated by the airline
If the baggage was damaged due to theft, robbery, or burglary, you must report the incident to the local police within 24 hours and obtain a written police report as supporting evidence for your claim.
MoneySmart Tip: What Does “Baggage” Include? |
Most insurers classify “Baggage and Personal Belongings” under one coverage category, but their interpretation of what counts as “baggage” can vary slightly. Generally, it refers broadly to clothing and personal items that are worn or packed in suitcases, luggage, or similar containers. However, items such as credit cards, cash, passports, and electronic devices (e.g., tablets, laptops) usually have separate compensation limits, and these limits are often lower than the overall “Baggage and Personal Belongings” coverage limit. |
If Lost Baggage Is the Airline’s Responsibility, How Can You Claim?
Unless the passenger has declared valuable items in their baggage beforehand and paid the related fees, airlines will only compensate for lost, damaged, or delayed checked baggage in accordance with international aviation regulations — namely the Warsaw Convention or the Montreal Convention. If you discover your baggage is missing upon arrival at your destination, remember to follow these 3 steps:
Step 1 Go immediately to the airline’s baggage service counter and report the baggage loss to the staff.
Step 2 The staff will ask you to provide personal and flight details, along with baggage information such as color, brand, and year of purchase.
Step 3 You will usually receive a case reference number, which allows you to track the progress of your claim.
How Much Can Airlines Compensate for Lost Baggage?
Under the Warsaw Convention, once proved Lost Baggage is the Airline’s Responsibility, passengers can receive about €20 (HK$183) or US$20 (HK$155) per kilogram of baggage. The Montreal Convention, on the other hand, entitles each passenger to a maximum of 1,131 Special Drawing Rights (SDRs), which is around €1,200 (HK$10,978) or US$1,800 (HK$13,997). Based on an economy class baggage allowance of 20kg, the compensation limit is only about US$400 (US$3111). If your baggage is of higher value, you can consider purchasing travel insurance before departure to ensure sufficient protection for your belongings.
How to Prevent Baggage Damage and Loss?
Choose a good-quality suitcase When traveling, opt for a sturdy, lightweight suitcase with strong anti-theft and protective features. High-quality luggage is easier to carry and wheel, and can also reduce the risk of damage or loss during check-in handling.
Use easily identifiable luggage Pick a suitcase with a bright color or a distinctive design. This helps prevent other travelers from mistakenly taking your baggage and makes it easier for airline staff to locate your luggage if it goes missing.
Add a GPS tracker to your luggage By placing a GPS tracker (such as an AirTag) inside your suitcase, you can locate it via an app, significantly lowering the risk of permanent loss.
MoneySmart Tip: Take Photos of Your Luggage Before Departure! |
If your baggage is damaged, you’ll need to take photos of the damaged areas as proof for your insurance claim. If you cannot provide photos, the insurer may ask you to submit the purchase receipt of the baggage or any past photos showing the item. That’s why MoneySmart recommends taking photos of your luggage before your trip to prove ownership. In addition, you can also request a baggage damage certificate from the airline to support your claim with the insurance company later. |
Selected Travel Insurance for Baggage Damage, Loss, or Delay
MoneySmart helps you compare 40+ travel insurance plans at once! Quickly find the policy that best protects your trip.
Travel Insurance | Overseas Medical Coverage | Trip Cancellation Coverage | Personal Belongings Coverage |
HK$1,500,000 | HK$20,000 | HK$15,000 | |
HK$1,000,000 | HK$25,000 | HK$10,000 | |
HK$500,000 | HK$25,000 | HK$8,000 | |
HK$1,000,000 | HK$25,000 | HK$10,000 | |
HK$500,000 | HK$30,000 | HK$7,500 | |
Blue Cross TravelSafe Plus - Global Diamond Plan (Single-plan Cover) | HK$1,500,000 | HK$50,000 | HK$20,000 |
