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Buyers beware!
As per the exchange rate on July 8, 2013, 1000 Special Drawing Rights is equivalent to Rs 90,083.6 (This fluctuates as it is tied to various currencies) So obviously, what the airline is offering is not covering your losses. Logically, since the checked-in baggage was entrusted to the care of the airline, if it is lost, the airline should fully indemnify the loss suffered by the passenger. But unfortunately for the passengers, this compensation is governed by the Carriage by Air (Amendment ) Act, 2009 and under this Act (Third Schedule, incorporating the International Montreal Convention to which India is a signatory), the liability for lost baggage in case of international carriers is limited to a maximum of 1000 SDRs.
So in essence, if your baggage gets lost during international travel, your compensation is limited to a maximum of 1000 SDRs. Even the consumer courts cannot award compensation beyond the limit prescribed under the Carriage by Air (Amendment) Act. Since the Act is a special law and the Supreme Court has held in many cases that a special law prevails over a general law, the National Consumer Disputes Redressal Commission has made it clear that consumer courts cannot award damages exceeding the limitation placed under the CA Act. In The Manager, Air India vs India Ever bright Shipping and Trading Company, the apex consumer court looked at this issue in depth and held that the Consumer Protection Act cannot change the substantive law (CA Act) which limits the award of damages. (FA No 451 of 1994) Similarly, in Egypt Air vs Smt Sai Leelavathi (RP No 830 of 2005), the National Commission set aside the compensation awarded by the lower consumer courts (for loss of baggage) and said it was limited to $400 as prescribed under the CA Act ( Before 2009, the compensation payable in such cases was governed by the Carriage by Air Act 1972, under which compensation was calculated on the basis of the total weight of the lost baggage and limited to $20 per kg ). Since under the CA Act courts can award litigation costs, it awarded costs of Rs 10,000. It has been a month since I returned from a trip to North America but the airline is yet to find my missing baggage. Every time I ask, they say they are trying to trace it. What should I do? Under the CA Act, if the baggage is not delivered to you within 21 days (calculated from the date of your arrival), you are entitled to enforce your right for compensation against the carrier. So make a list of the contents of your baggage and make your claim immediately. If you have receipts to show any purchases made, keep them also handy.
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I
had gone on a month-long vacation to Abu Dhabi and on my return trip,
the airline lost both my checked-in bags. In addition to the anguish
caused by the loss, I have lost goods worth Rs 2 lakh bought by me
during my trip. But the airline is offering only 1000 SDR as the
maximum compensation and even to pay that, they are demanding receipts
for my purchases. Can I go to the consumer court to get a higher
compensation?
This limitation,
however, will not apply if passengers have made a special declaration
of the value of the baggage at the time of check-in and paid
additional charges for it, if required. Or if the consumer or the
passenger can prove that the "loss resulted from an act or
omission of the carrier, its servants or agents, done with the intent
to cause damage or recklessly and with knowledge that damage would
probably result". This is certainly not easy to prove.