What is the limit of payment by British Airways on lost baggage and why?

Answer 1

For international travel, including the connecting flights (not stop-over), under the new Montreal Convention, a liability of USD$1500 per passenger for all lost bags.

However, under the new convention, the airlines have the right, and vigorously do so, ask for proof of purchase. Also used by carriers now is a reporting system, similar to insurance services, which checks to see whether there is or has been a history of insurance claims with the passenger or immediate family.

It initially checks the airline, then moves across the associated frequent flier scheme, then outside of the airline industry into other types of claims made. This is done through an aggregate of credit card numbers, telephone numbers, addresses, and occasionally even specifically claimed lost items.

It also checks against duplicate claiming between privately held Travel Insurance policies, home-owner policies, and added benefit coverage offered through various schemes. And finally, thanks to the advancements in technology, the researchers can retrieve camera footage for the entire journey for the bag, which is measured by precise timing of check in, under-airport routing - to sealed containers, to offloading, to scanning of the bag when it was placed on a carousel, to camera footage of the bag being retrieved. In 2010 alone, within the US, there were over 850,000 requests for prosecution for insurance theft through false baggage claims alone.

One of the greatest expenditures for airlines come from spurious passenger claims. Consequently the airlines take an aggressive approach to the processing of compensation claims. However, this is not to suggest that the airline does not take a broad view of such losses. Their reputation is based upon a key number of things, including timely delivery of your baggage.

British Airways used advanced security tracking schemes for all their baggage and cargo, including 24-hour broad and micro surveillance. When a claim for a lost bag comes through at British Airways there is a set procedure they follow. And whilst it's part of their confidential work-product, a very basic overview can be provided.

How often has this passenger flown with BA? What was the price paid for the ticket. Is this the 'one-off' holiday traveller using the least expensive advance purchased fare, or is it one of their 'CIP' (commercially important passengers) who flies hundreds of thousands of miles with them each year, is an Emerald member of the OneWorld Alliance, and even, in some occasions, might they be one of their 'WKRP's. (an acronym not generally divulged, but an important identifier for the airline). And finally, there's the pseudo code flight number - associated to Royal Family Members, certain world leaders, etc.

If your claim is legitimate and you're able to provide reasonable proof of purchase of the contents, which are reasonably found within a bag, then the carrier 'may' provide an increased refund, and even, in some cases, an ex-gratia gesture in one form or another.

BA have a responsibility towards their passengers, but they equally have a responsibility towards their share holders. It's often a fine balance to appease both. Cost of service vs revenue received are essential algorithms towards the successful operation of an airline.

Savvy passengers have learnt to ensure their personal goods are well protected beyond the single operation of a flight. It is far more valuable to insure yourself from theft whilst at hotels, on the streets, etc, in taxis, from pick-pockets, etc., than to only cover yourself for a few hours on a flight.