consumer law

Indian Consumer Law regarding loss, damage, delay of baggage at the airport

Every airline wishes to provide the best of its services to its customers, but sometimes, some unavoidable instances may cause loss to the passengers. A perfect flight can get ruined if your checked-in baggage arrives at the carousel, open, damaged, or with valuables stolen. According to the industry regulator Directorate General of Civil Aviation (DGCA) data, passenger complaints regarding baggage have increased considerably in the last three months. From 6.1 percent in December last year and 12.6 percent in January, complaints about lost, delayed, or damaged baggage and valuables made up for 15.7 percent of the total grievances in February according to an article published in MoneyControl. This article deals with consumer law on baggage loss.

Procedure to be followed in case of baggage loss

DGCA notification already states that passenger with no check in baggage can buy ticket at lower price subject to any amendment as on date. When passanger pays for ticket the airline becomes responsible for transportation of customer and his baggage. This is covered, both by statutes and international conventions. In India, the Carriage by Air Act ,1972 is the relevant statute which incorporates the conventions (Warsaw, Hague and Montreal Conventions) into local law. The DGCA, through CAR Section 3, Series M, Part VI has provided the following baggage compensation:

For international carriage

The Special Drawing Rights are defined by the International Monetary Fund (IMF) and can be converted into national currencies. The amount is calculated at the value of the national currency at the date of the court decision judgement. SDR is maintained by the International Monetary Fund.

With regard to destruction, loss or delay in relation to the carriage of cargo, the liability money would be 19 SDR compared to 17 SDR earlier.

The liability limits are revised once every five years by the UN body International Civil Aviation Organisation (ICAO) on the basis of a determined inflation factor of 13.1 per cent, triggering an adjustment in the limits.

During domestic carriage

In case of loss, delay or damage to baggage, liability is limited to INR 20,000 per passenger

In case of delay or damage to cargo, is limited to INR 350 per kg

At the time of booking, the customer agrees to an agreement with the airline company. This agreement includes several rules and regulations that are as per the Directorate General of Civil Aviation (“DGCA”). The said contract is known as  Contract of Carriage, which includes the rules or procedures to be followed when some uncommon things happen, like baggage loss.

Procedure for Damage, Loss or delay in receiving the baggage

If you do not find your baggage at the carousel or the baggage is open or damaged then you need to follow the procedure given below

  • reach the counter of the airline you traveled in, and file a Property Irregularity Report (PIR), duly filling the details of the baggage; Boarding pass should be kept handy as the same has  the information tags of luggage checked in.

PIR or Property Irregularity report is a statement from the airline with a reference code to track the baggage and may include details of the damaged bag and its contents as reported by the traveller. It is an acknowledgment of you reporting the delayed or lost or damaged baggage.

Once you have reported the lost / delayed or damaged bag- you’ll have the PIR or some form of acknowledgement from the airlines. The airlines will try and locate your baggage and deliver it to you free of cost at your address if they find it. If the bag is not found within 21 days, it can be officially declared lost.

In case of damaged baggage, as long as it s not due to overpacking and delibrate intentions to damage, you can check with your airlines for compensation.

For delayed baggage, the clauses are based on hours of delay. You can get compensated for your essentials you need whilst the bag is delayed.

  • The staff of the airline checks with the team of the departing airport and the arrival airport; Urgent tracers are made to all connecting segments so that the lost baggage can be traced;
  • If the baggage cannot be traced, then the baggage is declared lost. Air India for instance states if a delayed baggage could not be traced for 21 days from the date of Property Irregularity Report , the same may be treated as lost. The compensation claim will be processed as per laid down procedures. All claims to be substantiated with itemized list of contents, description, age together with proof of purchase / ownership of all such items.

Compensation in case of baggage loss

The airline companies do not have liability for the valuable items that you have kept in the checked-in baggage. If you are placing some valuable items in the baggage, you must make a declaration at the time of checking in stating the valuable item that is in the checked-in baggage. On making the declaration, airlines charge an amount for the said valuable items that are kept in the checked-in luggage. The said amount is charged to ensure that the baggage is safely transferred to the arrival airport and is received by the passenger at the baggage carousel.

You can claim damage from the airline only when the event which cause the loss, delay or damage took place on board the aircraft or during any period within which the checked baggage was in the charge of the carrier.

Unchecked Baggage

Additionally, in the case of unchecked baggage, the carrier is liable if the damage has resulted from its fault or that of its agent.

Further, the Ministry of Civil Aviation has provided the passengers with more relief, which they can claim as per Rule 22(2) of the Third Schedule of the Carriage by Air Act, 1972 (as amended by the Notification dated 17.01.2014 issued by the Ministry of Civil Aviation). The liability of the carriers, in case of baggage loss/damage, is limited to a maximum of INR 20,000/- even if the cost of the Complainant’s lost baggage exceeds the aforementioned maximum liability. Recently, the said limit has been increased to INR 25,000/-, as per the notification by the Ministry of Civil Aviation dated 22.08.2019.

Liability for International Carriage

Liability for International Carriage ( with certain exceptions ) is subject to the rules and limitations established by the Convention as embodied in the Indian Carriage by Air Act 1972 as amended vide Act No. 28 of 2009, dated 20/03/2009 and pursuant to Notification No S.O. 1283(e) issued by the Government of India notifying The Carriage by Air Amendment Act, 2009.

Immunity available to airlines against Damage

Luggage is designed to protect its content. In the course of normal handling, your luggage will acquire evidence of use /wear and tear such as, minor cuts, scratches, dents or soil. We trust you understand that we shall have no liability for this type of damage including but not limited to

  • Broken feet/wheels or handles /straps*
  • Damage to over packed/oversized bags
  • Damage due to unsuitable packing
  • Damage to pull handles / lost pull handles*
  • Items of a fragile or perishable nature
  • Manufacturer/s defects

Judicial view

Though the ministry of civil aviation has prescribed the maximum amount of compensation to be paid by the airline in case of baggage loss, many consumers have challenged this charge before consumer commissions, and the consumer commissions have awarded compensation above the statutory limit.

In jet Airways Ltd. vs. Ajit Kumar Sinha[Complainant Case No. 374/2008 by the District Consumer Disputes Redressal Forum-II, Qutub Institutional Area, New Delhi] decided on 18 November 2015, the state commission allowed the compensation of INR 2 lakhs.

Similarly, in Chander Mohan Lall vs British Airways & Ors. [Complaint No.257/2012, Delhi State Consumer Disputes Redressal Commission] Decided on 6 November 2017, Delhi State Consumer Disputes Redressal Commission allowed the compensation of INR 5 lakhs.

In Indigo Airlines & Anr. Vs Aastha Pansari [Revision Petition No. 1004 Of 2018, National Consumer Disputes Redressal] decided on 17 January 2020, the National Consumer Disputes Redressal observe that “The ratio concerning limited liability is very clear. When the Airlines Rules of Carriage limit the liability to ₹3,000/-unless there was a special declaration by the passenger, the Airlines cannot be made liable for the amounts claimed lost since the contents of each baggage are not known to the Airlines unless and until the declaration is made.”

As a standard practice, the passengers are advised not to carry their valuables in the checked-in baggage. The airlines guidelines should be checked with regarding the checked in baggage. In case of any delay, damage, loss of baggage as provided the customer should move with appropriate procedure provided and in case of no satisfaction, they should proceed to file a consumer complaint.

Photo by Chris Hardy on Unsplash

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About the author

Chirayu Sharma (Joint Secretary, Students Research & Reporting Advisory Board, Indian Law Watch)

Chirayu is a B A LL.B student from IDEAL Institution of Management and Technology and School of Law, Karkardoma. Chirayu is avid reporter and researcher with Indian Law Watch. He received Honorable Mention Award in URJAA”THE BATTLE OF WORDS” in IIMT and School of Law (18th and 19th October, 2019)