Data from nib Travel shows that luggage, whether it’s misplaced by airlines, stolen, damaged, or simply left behind, accounts for almost one-fifth of all travel insurance claims, making it one of the most common types of claims.
“People often assume travel insurance is just for major medical emergencies, but lost or missing baggage can cause enormous disruption and cost,” said Matt Neat, Group Executive, Strategy and Development, nib Travel. “From missing medication to replacing personal electronic devices, the consequences can be stressful, expensive and really interrupt your trip.”
The average cost for luggage claims last year was around $800, including for common items such as smartphones, prescription medications and laptops. Of all nib Travel luggage claims in 2024, 59% were linked to items that were lost or stolen, 25% were for damaged items and 16% were due to delayed baggage.
“While only a small number of travellers typically need to make a claim, the burden of missing medication, replacing expensive items or losing irreplaceable goods can be overwhelming. This is why securing adequate travel insurance, preferably at the time you book your travel, is important,” said Mr Neat.
One traveller lost a high-end camera and accessories, with irreplaceable wedding photos, on a trip from Denmark to Singapore. While nib Travel couldn’t recover the missing photos, a claim of $10,379 was paid covering the missing camera, lenses and accessories.
In another case, a couple visiting Chile pulled over to fix a flat tyre. A helpful stranger offered assistance, but while they were distracted, their luggage was stolen from the car. A claim of $8,705 was paid on return.
Where it happens most
nib Travel typically sees a spike in luggage claims in Europe during the busy summer season (June–September), whereas claims in the United States and Asia are steady year-round. However, luggage can be lost or stolen anywhere in the world, with claims occurring in over 70 countries in 2024.
Fraudulent claims
While the majority of claims are genuine, nib Travel has robust systems in place to detect suspicious or fraudulent activity.
“Most people do the right thing, but unfortunately a small minority attempt to take advantage of the system,” said Mr Neat. “Our claims team is trained to spot suspicious patterns or inconsistencies that may require a closer look.”
To help you keep track of your items while travelling, nib Travel is encouraging travellers to:
- pack essential items such as medication and high-value items in carry-on luggage
- keep a tracking device like an AirTag in your luggage so you can track its location
- photograph packed items before travelling to assist with faster claim processing
- review policy limits and exclusions, especially when travelling with specialty equipment.
“A single suitcase might not seem like a big deal until it’s gone. Travel insurance may provide support in a range of scenarios where luggage is lost or damaged, but coverage will depend on the level of cover you choose*.” Mr Neat said.
For more information on nib Travel, contact your local travel professional or visit https://www.nibtravelinsurance.com.au.
The features and benefits described are a summary of cover only; and cover is subject to the full terms, conditions, limitations, and exclusions outlined in the Product Disclosure Statement.
