UK travel insurance industry pays out 38 million for lost luggage

UK travel insurance companies receive more than 30,000 claims for lost or stolen luggage every month as airlines refuse to reimburse customers sufficiently when their bags go missing.

According to a league table produced by the Associ, making it the fourth worst performer out of 26 airlines in Europe.

British Airways lost 15.6 bags per 1,000 passengers, putting it in fifth worst place. Virgin Atlantic was the third best performing airline, mislaying 4.9 bags per 1,000 passengers.

Spanish carrier Iberia was the worst offender, losing 19.2 bags for every 1,000 passengers. The airline blamed snow in January and industrial action by pilots for its poor performance up to March this year.

Passengers whose bags are mishandled by an airline are often shocked by how little compensation they receive. Pay-outs are determined by something called the Montreal Convention, which limits an airlines' liability to a little over £1,000 per passenger, not per bag.

Often it's travel insurance companies that pick up the slack. Last year they paid out around £38m in claims for lost and stolen luggage.

Insurewithease travel insurance provides between £1,500 and £3,000 cover for personal possessions, depending on the policy.

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