Etihad Airways

Etihad Airways. Photo: Shutterstock


On September 17, 2024, Etihad Airways was instructed to pay Rs 75,000 as compensation and legal expenses to a passenger who lost over Rs 30 lakh in cash and valuables after the airline misplaced her cabin baggage. This incident stemmed from a 2016 flight when the traveller’s luggage went missing during a layover in Berlin, leading to a consumer case against the airline in the Delhi Consumer Disputes Redressal Commission.


What went wrong?

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A traveller flying from Sweden to India, with a layover in Berlin in 2016, was told by an air hostess in Berlin that her carry-on luggage was too large for the cabin and was assured it would be returned to her in Delhi. However, upon arriving at Delhi International Airport, her luggage was missing. Although it was eventually returned, the passenger discovered that items, including cash and gold, were missing from the bag.

 


The passenger claimed that valuables worth Rs 30 lakh were in the bag, including Rs 24 lakh in Swedish Kroner, a gold chain and locket weighing 30 grams, a Rado wristwatch, Sony headphones, and high-end Marks and Spencer clothing.


How did the airline respond?


Etihad Airways denies liability for loss of valuables in check-in baggage.


Etihad Airways, in its defence before the Delhi State Commission, stated that the luggage in question was treated as checked-in baggage, not cabin baggage, and therefore it was not liable for the loss of valuables. The airline’s legal team cited IATA General Conditions of Carriage, which limit their responsibility to declared items in checked-in luggage, according to a report by The Times of India.


The airline also pointed out discrepancies, stating that the incident occurred with Air Berlin staff and not Etihad’s, as the first leg of the journey from Sweden to Berlin was operated by Air Berlin. “The complainant’s claims are based on facts that do not align, as they involved Air Berlin’s crew, not Etihad,” said Etihad’s legal team.


What was the commission’s verdict?


Delhi Consumer Disputes Redressal Commission orders limited compensation


After considering the details, the Delhi Consumer Disputes Redressal Commission ordered Etihad Airways to pay a total of Rs 75,000 as compensation and legal expenses. The commission found a deficiency in service but ruled that there was no compensation for the lost items, as the passenger did not declare them during check-in.


The commission noted that the complainant failed to declare the cash and jewellery to customs authorities both at the Gothenburg Airport in Sweden and Delhi International Airport, which was a crucial factor in the ruling.


Lessons to be learned:


Passenger responsibilities


“Under the Carriage by Air Act, 1972, airlines have limited liability for checked baggage unless passengers declare a higher value at check-in,”  Deepika Kumari, Partner at King Stubb & Kasiva, Advocates and Attorneys, told Business Standard.


She added that travellers must ensure that they accurately declare any valuables in their luggage. Some of the steps passengers can take in similar situations are:


Declare all valuables: When carrying high-value items, declare them to the airline and customs authorities at both the departure and arrival points.


File a complaint promptly: Report any loss or damage to your luggage immediately to the airline staff at the airport.


Document all interactions: Keep detailed records of communications with the airline and related documents for future reference.


Consider travel insurance: Travel insurance policies can provide extra protection for lost or delayed baggage.


Travel insurance options for lost baggage


Several travel insurance plans offer coverage for lost baggage. Here are some options provided by Policybazaar:


1. HDFC ERGO Travel Insurance – Gold Plan


Covers loss of checked-in baggage up to Rs 50,000.


Includes medical emergencies and trip cancellation.


2. Tata AIG Travel Guard


Provides compensation for lost checked-in baggage up to Rs 50,000.


Covers emergency medical expenses and trip interruption.


3. Religare Travel Insurance – Explore Plan


Covers loss or theft of checked-in baggage up to Rs 40,000.


Offers coverage for medical emergencies.


4. ICICI Lombard Travel Insurance


Covers total loss of checked-in baggage up to Rs 50,000.


Includes medical expenses and trip cancellation benefits.


Steps to take if checked-in luggage goes missing


According to the Directorate General of Civil Aviation (DGCA) guidelines in India, passengers should follow these steps if they lose their luggage:


1. Report immediately: Notify airline staff or ground personnel about the missing items as soon as you realise the loss.


2. File a written complaint: Ensure you receive a written acknowledgment from the airline for your complaint.


3. Contact customer care: Follow up with the airline’s customer service if the issue remains unresolved at the airport.


4. Compensation eligibility: Compensation may be available if the airline is found responsible for the loss.


5. Escalate if necessary: If the airline fails to address your complaint, escalate it to the DGCA using the AirSewa portal.

First Published: Oct 07 2024 | 10:36 AM IST

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