How Much Can You Claim for Lost or Damaged Baggage?
Understanding coverage limits, reimbursement rules, and how to document your losses
Losing your luggage or opening a suitcase to find damaged belongings can feel like more than an inconvenience — it’s a disruption to your plans, a financial setback, and sometimes, a stressful fight to be made whole. One of the first questions that comes up is also one of the most confusing: “How much can I claim?”
The answer depends on several factors, including the type of travel, the policies of your airline, and whether you have travel or credit card insurance. But understanding your rights and how claims are typically assessed can make the process clearer and less overwhelming.
What Airlines Are Legally Required to Cover
If your baggage is lost, delayed, or damaged while in the care of an airline, international and domestic regulations offer some baseline protections. The most common framework is the Montreal Convention, which covers international flights between most countries.
Under this convention, airlines are liable for damages up to approximately 1,288 Special Drawing Rights (SDRs) — a type of currency used by the International Monetary Fund. This works out to roughly $2,400 CAD, though exchange rates vary.
In Canada, domestic travel is governed by the Canada Transportation Act, which similarly limits liability to around $2,300 CAD unless you declared and paid for excess value at check-in.
Note: These are maximums, not guaranteed payouts. You’ll be expected to prove the value of what was lost or damaged, and compensation is often based on depreciated value rather than replacement cost.
How Value Is Calculated
Compensation for lost or damaged items isn’t about what you paid originally — it’s typically based on the current value, factoring in age and condition. This means that a five-year-old suit or laptop won’t be reimbursed at its purchase price, but at a much lower amount.
Most airlines and insurers will request:
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An itemized list of contents with estimated values
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Original purchase receipts or proof of ownership, if available
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Photos of the items or your packed suitcase (especially helpful in damage claims)
| Item Type | How Value Is Assessed | Typical Documentation Required |
|---|---|---|
| Clothing | Current value based on age/wear | Original receipts or purchase estimates |
| Electronics | Depreciated value unless insured | Receipts, serial numbers, photos |
| Luggage itself | Replacement cost often capped | Photos of damage, luggage brand/model |
| Essentials during delay | Actual cost within daily limits | Itemized receipts for each purchase |
Caution: Not all items are covered. Airlines and insurers often exclude fragile items, jewelry, cash, or electronics packed in checked bags. Review your policy carefully to understand exclusions.
When Travel Insurance or Credit Cards Can Help
Airline compensation is often limited, which is where travel insurance or credit card coverage can add meaningful support. If you purchased a policy or paid for your trip using a card that includes baggage protection, you may be able to claim:
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Additional reimbursement beyond airline caps
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Coverage for specific items like electronics or business equipment
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Baggage delay benefits — typically a daily amount to replace essentials after a waiting period
Each policy has its own coverage limits and claim process, but having both airline and insurer support can help fill in the gaps.
Tip: Before each trip, check what your credit card or travel policy includes. Not all plans cover baggage loss automatically, and many require documentation to be submitted within 20–30 days of the incident.
What to Do to Support a Strong Claim
The strength of your claim often depends less on the value of your items and more on the clarity of your documentation. Whether you’re working with an airline, insurer, or both, these steps increase your chances of success:
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File a Property Irregularity Report at the airport as soon as your bag is delayed or damaged
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Take photos of your packed luggage before your trip
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Keep receipts for high-value items you bring with you
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Save all travel documents, including boarding passes and baggage tags
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Submit claims early and keep copies of everything you send
How Claims Are Paid — and What to Expect
Even when your claim is approved, the process takes time. Airlines may take several weeks to investigate, and insurers typically require their own forms and verification before payout. Reimbursements are usually issued via cheque or direct deposit and are capped according to the policy or regulation that applies.
You’ll also need to be patient with how losses are calculated. In most cases, claims are not paid at full retail value — they reflect the adjusted, depreciated worth.
How Much Can You Realistically Recover?
In most scenarios, your total reimbursement for a lost bag is capped around $2,300 to $2,400 CAD, depending on the route and applicable laws. Travel insurance may supplement this, especially for delays or special items, but exclusions are common. The more documentation you have, the more likely you are to recover the full eligible amount.