For international flights, the baggage liability limit is approximately $9.07 per pound ($20 per kilogram) for checked baggage and $400 per passenger for unchecked baggage. A minimum waiting period of one week is required before baggage can be declared lost. About 98% of bags reported missing are returned to the owners.
When a bag is declared loss, you will have to submit paperwork to the airline documenting the value of the bags and their contents. You may not necessarily get full value for all the lost items. Reimbursement will come 2-6 weeks later.
airlines will not reimburse for currency, photographic or electronic equipment (e.g., cameras, stereos, VCRs, camcorders, CD players, telephones, etc.), rare and expensive jewelry or artistic works, or medication, unless prior arrangements were made (e.g., excess valuation insurance was purchased). Some credit cards will cover these items if the tickets were purchased with the card.
Most lost baggage doesn't disappear to the same black hole that eats socks from your laundry, but eventually makes its way to regional warehouses owned by the airlines. If the airline can't identify the owner, they sell it at auction, just like the post office's lost letter department does. airlines keep all unclaimed baggage for three months before selling it at auction. There are even stores that specialize in buying the lost baggage, sorting the contents, and selling the merchandise and clothing that's in good condition. The Unclaimed Baggage Center in Scottsboro , Alabama , is one such store, and a fun place to visit.
If your bags are damaged, the airline will either fix them, reimburse you for the cost of repairs, give you new bags, or pay for the cost of replacing them, depending on the amount of damage. You must report any damage within 7 days. If your bags are damaged before you check them, the airlines will ask you to sign a damage waiver at check in, which states the nature of the damage and exempts the airline for that damage. Otherwise, if the bags arrive damaged and the airline didn't have you sign a waiver, the airline is fully liable for the condition of the bags. Normal wear and tear, of course, is not subject to a damage claim. Carry-on bags are not subject to damage claims, except in clear cases of airline negligence (e.g., flight attendant moves your bags, damaging them).
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