It’s time for a celebration! A ruling made by the Government of Canada’s Canadian Transportation Agency on April 30, 2008 ruled that Air Canada must compensate passengers on international flights for any lost items that are accepted as checked baggage.
Air Canada is thus liable to the maximum amount of liability in the Montreal Convention which is 1,000 Special Drawing Rights. “Special Drawing Rights” are a monetary united used by the International Monetary Fund (IMF) and other international organizations. As of April 29, 2008, the value of 1 SDR was 1.64.
Thus, Air Canada would have to compensate any passengers on international flights up to $1,600 for any bags or luggage that get lost. However, there is only a limited amount of liability for lost, delayed or damaged baggage. If a traveler believes that the liability is too low, it is a good idea to declare a higher value for the baggage to be checked.
It’s also a good idea to get travel insurance that can cover the cost of lost luggage and bags. Some credit cards also cover this – be sure to check your policy.
Also, remember that airlines are not likely to compensate travelers for more than the actual loss suffered – so may request proof of loss.
Happy flying!