Thousands of holidaymakers travelling this May will only find out they have a problem when they try and claim for lost or damaged possessions in their luggage this is because no one is telling them they have inadequate luggage insurance. The majority of travellers will not be adequately covered.

There are an estimated 18 million travel insurance policies sold every year and a staggering 50,000 claims are rejected leaving holidaymakers and business travelers without adequate or any cover at all for their luggage and possessions when a mishap occurs.

Linda Reyes, CEO of International Baggage Insurance (IBI), warns that the real shock for many holidaymakers comes when they realise the maximum cover for their possessions will hardly pay for a new case, let alone its contents.

The limits of most travel insurance policies apply to anything in the luggage; this includes your clothes, shoes, accessories and even the case itself. The average travel policy imposes single item limits on baggage contents that typically don’t exceed €350, so thousands of travellers could find themselves seriously out of pocket.

With weight limits and size restrictions imposed by airlines on hand luggage many travellers now will put one or two of their electronic devices into their luggage. This will compound the problem as these electronic items alone can be worth as much as €500 – €1000 this is without putting a value onto the contents on them.
Some cheaper insurance policies could even make it worthless to make a claim due to the high excess charges and miniscule payouts. Linda Reyes agrees with industry experts that reading and understanding travel insurance details are as important as planning the actual trip.

“You have to read the small print and make sure what you carry with you, what is in your luggage and what you expect in compensation if there are problems, matches your expectations. Some insurance claims will come as a shock to many people when they receive only a small percentage back in compensation.”

There is another solution according to Linda Reyes that is to take out adequate and meaningful insurance.

“Read the small print and then make sure you understand the small print! When we launched a new insurance scheme for travellers that can pay out up to €1,000 for possessions, we knew there was a gap in the insurance market. Don’t be fooled into thinking you are covered and then complain if you have not read and understood the small print. Travelling with hundreds of Euros worth of clothing and electronic items in your luggage means you will undoubtedly be well over any insurance claim limits.”

To many the false economy of taking cheap or minimal luggage insurance is a recipe for disaster says Linda Reyes.

“Our role is to keep travellers happy on their travels by ensuring what they take away with them is covered by the right insurance. This is what all insurance for travellers should be – comprehensive, value for money and sorted before you travel.”

IBI’s latest insurance cover offers policies starting at just €12 for the Basic cover that still offers €300 insurance through to the Superior product that offers €1,000 cover for just €20.


Suitcase stuffed with way to much clothes