Lost luggage insurance claims soar in the wake of baggage chaos

12 April 2012

Travel insurance claims for lost luggage have soared in the wake of the British Airways baggage crisis.

Norwich Union said it had seen a 40 per cent rise in claims for missing baggage in the first six months of the year.

The figures came a week after another firm, InsureandGo, said it had seen an 85 per cent rise in claims in the same period.

The revelation comes amid mounting pressure on airlines and airport operators over lost baggage.

British Airways admitted it had a backlog of 22,000 items of luggage and was flying jumbo jets filled with delayed bags across the Atlantic as well as using fleets of vans to ferry other baggage across Europe.

Many were flown to Milan to be processed at a central warehouse.

BA has faced numerous problems with its luggage system, particularly at Heathrow, where a conveyor that moves bags between terminals broke down.

Passengers at the airport have been faced with piles of baggage clogging the arrivals hall and long - and often fruitless - waits for their own bags.

The Association of European Airlines ranked BA among the worst for losing baggage.

During the first half of the year, 28 passengers out of every 1,000 did not receive their luggage at their destination and Heathrow has been the worst affected.

Budget airline Ryanair seized on the insurance claim figures yesterday, saying it only losses 0.4 bags per 1,000 passengers - although many opt not to check in luggage because they are charged for each item - and that its passengers should be given lower insurance premiums.

Peter Sherrard, a Ryanair spokesman, said: "For years the car insurance industry has provided discounts for low-risk categories such as women drivers and the over-Thirties.

The time has come for passengers flying with airlines that deliver the best customer service to enjoy the same discounts."

The airline has written to the Association of British Insurers to request the change.

Norwich Union said it did not back the move.

Luis Berraondo, a travel underwriter for the insurer, said: "Tracking each individual airline or far-flung airport would be extremely difficult and would add unnecessary bureaucracy and cost to an otherwise simple process.

"While losing or having your luggage delayed is very frustrating, it is still only the third-biggest area for claims on travel insurance.

"Medical emergencies and cancellation are by far more frequent and expensive."

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