“Why UAE Travellers Should Secure Baggage Insurance This Summer”

Dubai: With summer holidays fast approaching, airports worldwide are bracing for a surge in passenger traffic. Along with the seasonal rush comes a higher risk of baggage mishandling—an all-too-common travel headache that can quickly derail vacation plans.

Despite advancements in baggage handling systems, issues still persist, especially during peak travel months. According to the SITA Baggage IT Insights 2024 report, delayed baggage made up 77% of all mishandling incidents in 2023, with transfer-related mishandling being the most common cause.

When Baggage Issues Ruin Your Trip

Policybazaar.ae, a UAE-based insurance aggregator, has reported a noticeable uptick in baggage-related claims, particularly among Europe-bound travellers during summer 2025. These incidents—ranging from baggage delays to complete losses—are often compounded when travelling with budget airlines or transiting through busy hubs.

“During the summer peak, we’re anticipating a spike in baggage claims due to the surge in travel,” said Toshita Chauhan, Business Head of General Insurance at Policybazaar.ae. “Insurers are responding by enhancing coverage options, including protections for baggage loss, delay, and theft.”

Many insurers in the UAE now offer digital claims platforms, allowing travellers to file and track claims online, resulting in faster processing times and a smoother experience overall.

What Baggage Insurance Typically Covers

When purchasing travel insurance, it’s vital to review what baggage protection actually includes. Most policies offer coverage for:

• Loss of checked-in baggage: Compensation for permanently lost luggage during transit.
• Baggage damage: Repair or replacement of damaged bags.
• Baggage delay: Reimbursement for emergency essentials (e.g., clothes and toiletries) after 6–12 hours of delay.
• Theft or burglary: Compensation for stolen items, provided the incident is reported to authorities.
• Loss of personal belongings: Coverage for items like electronics or jewellery, subject to sub-limits.
• Loss of travel documents: Reimbursement for replacing essential documents like passports.

Coverage limits typically range from $250 to $5,000, depending on the insurer. For instance, RAK and Orient Insurance offer higher-end limits, while others like Watania may provide basic coverage starting at $250.

Understand Policy Limits Before You Claim

Hitesh Motwani, Deputy CEO at InsuranceMarket.ae, cautions that baggage coverage often comes with per-item limits—usually between $300 and $500 per item—and an overall maximum cap. High-value items such as jewellery, cash, or electronics may have tighter restrictions or may not be fully covered.

“Claims can be denied if items weren’t securely stored, left unattended, or if the incident wasn’t reported promptly,” Motwani explained. He added that standalone baggage insurance is generally not available in the UAE, so travellers should look for comprehensive travel plans with robust baggage protection included.

Filing a Baggage Insurance Claim: What to Do

To ensure a successful claim, timing and documentation are key. Travellers should:

1. Report the issue immediately to the airline and obtain a Property Irregularity Report (PIR) within 24 hours.
2. Notify your insurer within 30 days of the incident or upon returning home.
3. Submit required documents, including:
   • Travel proof (tickets/boarding passes)
   • PIR or police report
   • Receipts for lost items or emergency purchases
   • Evidence of loss or damage

Claims are generally settled based on the depreciated value of the items, not the replacement cost, so understanding your policy’s terms in advance is critical.

Bottom Line

With increased travel volumes and the potential for baggage delays or losses this summer, UAE residents are strongly advised to secure comprehensive travel insurance with high baggage protection limits—especially those travelling with valuable items or children. Always read the fine print and consult your insurance provider to ensure you’re fully protected before takeoff.