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How to Claim Your Airline Compensation in Case of Lost Luggage

Know what you need to do to be compensated for lost luggage.

By: Denisse Shawntel Tan | March 17, 2018
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How do airlines compensate for lost baggage

What’s worse than damaged baggage? A lost one.



When we travel, we are not always guaranteed that everything will go according to plan. Sometimes, things go wrong due to unforeseen circumstances. One of the most dreaded yet sometimes unavoidable problems is loss of baggage.

While it doesn’t happen often, when it happens it could be troublesome especially if the affected customer carries valuable items and necessities in his or her luggage. Aside from lost possessions, it is also a great inconvenience. While we can’t readily prevent these things from happening, at least there are solutions we can seek out if it does.

First of all, passengers should be fully aware of their rights as air passengers before travelling. The Department of Transportation (DOTr) and the Department of Trade and Industry (DTI) previously issued the Joint Administrative Order (JAO) No. 1 Series of 2012 or the Air Passenger Bill of Rights, which details the rights of passengers when it comes to ticket purchasing, booking cancellations, and lost or damaged valuables.

According to the bill, airlines are obliged to shell out PhP2,000 as compensation for every 24 hours that a baggage is delayed upon getting to the destination. If the baggage fails to get to the proper owner within seven days, it is considered lost. Local airlines such as Cebu Pacific and Philippine Airlines follow the air passengers rights when dealing with lost or damaged baggage.

For lost luggage in international flights, our air passenger rights states that airlines shall abide by the appropriate international agreement to determine the applicable compensation. Cebu Pacific, for one, abides by the Warsaw Convention, wherein the passenger can be reimbursed with up to 1,131 special drawing rights, which is equal to USD1,685.19 or approximately PhP87,765.54*. The Warshaw Convention is based on the Montreal Convention of 1999 which covers international carriage of luggage, passengers, and cargos.

For lost or damaged luggage in domestic flights, the maximum amount that an affected customer can be reimbursed with is the peso equivalent of what is set in the convention. According to the website Travel Insurance Review, the compensated amount depends on several factors such as the luggage’s contents and the flight route.

Once travellers notice that their luggage may be missing, the first thing to do is to contact the air courier and follow their given instructions. They can immediately file a missing baggage report and a claim for compensation without having to go through legal procedures; it is within the airline’s authority to do so.

To be sure, travellers should also ask the airline if they need to procure documents such as receipts of the items included in the missing luggage. Some airlines will ask for receipts of the valuable items inside the lost baggage in order to estimate the value of the lost possessions.

The Air Passenger Bill also states that the compensation fee shall be given to the affected passengers on the same date of the incident. The passenger can ask to receive the amount at the airline’s main office or other branches at their own discretion. However, airlines have set deadlines for claiming of compensation. For foreign airlines, usually the deadline for claiming is after the baggage has been officially marked lost.

While it helps to know what to do during these instances, prevention is still better than cure. Here are other tips that can help lessen the risk of losing your luggage.


  • Tie an identification tag with your name, complete address, and contact details to the loops of your luggage. If you can afford it, there are also high-end luggage bags with GPS tracking features in the market.
  • You should also bring two copies of your itinerary: one should be with you at all times and another should be inside your luggage. This way, whoever finds and examines the contents of your lost luggage would know exactly where to locate you.
  • Avail of a travel insurance package that covers lost baggage. This is important if you are bringing valuable items on your trip.
  • Before going on your trip, you should take photos of what your luggage looks like, both its contents and its general appearance, so you can show it to authorities in case it goes missing.
  • It also helps to make a list of personal and valuable belongings inside each of your luggage. Making a list helps you remember what valuable items you put inside your bag, possibly for claiming the insurance later on.
  • As much as possible, check in at least 30 minutes before departure time so you can still monitor how and where they load the luggage.

Travelling, whether for business or vacation, is supposed to be a memorable experience, and while losing our luggage isn’t exactly how we would want to remember a trip, it always helps to know what we can do.


* Based on exchange rate of PhP52.00 for USD1.
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About Denisse Shawntel Tan
Denisse Tan is currently a work in progress: she’s an aspiring writer, artist, and fashion designer! She’s trying to figure out how to manage her time in achieving all of her goals while also taking in life as humanly possible. Aside from art, she’s a big fan of the color pink, disco music, Bratz dolls, and Genshin Impact. By age 35, she plans to travel to New York City 🗽.
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Disclaimer: All articles in the Consumers Magazine of Yoorekka are for general information and entertainment purposes only. Although careful research has been made in writing them, Yoorekka does not make any warranty about the completeness and accuracy of all information presented in our articles. Our content is not intended to be used in place of legal, medical, or any professional advice.
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