Why UAE travellers need baggage insurance before flying this summer
Baggage mishandling peaks in summer, here’s how travel insurance can protect you
Dubai: As the summer holidays approach, airports across the globe prepare for a surge in passenger traffic. With the seasonal rush, baggage mishandling becomes more common, particularly at some of the world’s busiest airports. While baggage handling systems have improved over the years, delays and losses still occur, especially during peak travel months.
According to SITA’s Baggage IT Insights 2024 report, delayed baggage accounted for 77 per cent of all mishandled baggage in 2023, with transfer mishandling cited as the leading cause.
Why baggage issues can ruin your trip
Having your luggage delayed or lost can derail your entire holiday itinerary. Policybazaar.ae, an insurance aggregator, notes a rise in claims from Europe-bound UAE travellers (especially to Schengen countries) during summer 2025. These claims have been largely linked to hospitalisations and baggage-related incidents.
Insurance experts say that baggage mishandling spikes during the summer travel surge from the UAE. This is why comprehensive travel insurance, particularly with strong baggage protection is highly recommended, especially if you are flying with budget airlines or during peak holiday periods.
“During the summer peak travel season, insurers are anticipating a rise in baggage-related claims due to increased travel volumes and higher instances of baggage mishandling,” said Toshita Chauhan, business head of general insurance at Policybazaar.ae. “In response, insurers are implementing several measures by providing enhanced coverage options, including plans that cover baggage loss, delay, and theft.”
Chauhan also pointed out that many insurance providers in the UAE have adopted digital claims processing. Travellers can now use mobile apps and online platforms to file and track claims more efficiently, speeding up resolution times and improving the overall claims experience.
During the busy summer travel season, insurers expect a significant increase in baggage-related claims driven by higher passenger volumes and more frequent mishandling incidents. To tackle this, they are introducing enhanced coverage options, providing travellers with more comprehensive insurance plans that protect against baggage loss, delays, and theft.
What baggage insurance typically covers
When selecting a travel insurance plan, it is important to understand what is included when it comes to baggage protection. Chauhan outlined the most common inclusions:
Covered under baggage protection:
Loss of checked-in baggage: Compensation for permanently lost luggage during transit.
Damage to baggage: Coverage for repair or replacement if your luggage is damaged in transit.
Baggage delay: Reimbursement for emergency essentials (e.g., clothing and toiletries) if your bags are delayed beyond 6–12 hours.
Theft or burglary: Covers stolen items if the incident is reported to authorities or police.
Loss of personal belongings: Some policies cover personal items like electronics or jewellery, up to a set sub-limit.
Loss of travel documents: Reimbursement for the cost of replacing lost passports or other essential travel documents.
Coverage typically ranges from $250 to $5,000, depending on the insurer and policy. “For example, RAK Insurance and Orient Insurance offer up to $5,000, while RAK and Watania offer the minimum starting at $250. The destination does not determine the coverage limit, it varies by insurer,” she noted.
Know the limits before you claim
UAE insurers often attach specific conditions to baggage protection.
“Coverage is typically capped per item often in the range of USD 300 to 500 per article with an overall maximum across the claim. High-value items like electronics, cash, or jewellery may have stricter exclusions or lower sub-limits,” Hitesh Motwani, deputy CEO at InsuranceMarket.ae, explained.
Additionally, claims may be denied if items were left unattended, not stored securely, or not reported promptly to the appropriate authorities.
“While most travel insurance policies in the UAE include some baggage cover, there generally is not a standalone baggage-only product available,” Motwani added.
Instead, the best approach is to choose a travel insurance plan with higher baggage protection limits built in. This is particularly important for travellers with high-value belongings or families with children, where delays or losses can be more than just inconvenient.
The best option is to select a policy with higher baggage protection limits included in its main benefits. This is especially crucial for travellers with valuable belongings or those travelling with children, as baggage delays or losses can cause significant disruption beyond just inconvenience.
How to file a baggage insurance claim
The process for filing baggage-related claims is generally standard across most insurers and timing is crucial. Travellers should:
Report the issue immediately to the airline or relevant authority and obtain official documentation, such as a Property Irregularity Report (PIR).
Notify your insurance company within 30 days of the incident or your return date.
Submit a claim with supporting documents, including:
Proof of travel (tickets or boarding passes)
Evidence of the loss or damage
Receipts for the lost or emergency purchase items
Any official reports (from police, airport, or airline)
“Claims are generally settled based on the current market value, not replacement cost, which means depreciation is factored in,” Motwani noted.
If your baggage is mishandled by an airline, it is essential to file a PIR within 24 hours. Always read the fine print of your travel insurance or better yet, consult your provider at the time of purchase to ensure you understand your baggage coverage.
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