With the number of mishandled bags rising sharply, more U.S. leisure travelers are buying insurance to protect against loss of luggage, according to an insurance trade group.

The Richmond, Va.-based U.S. Travel Insurance Association reported that 30 percent of U.S. leisure travelers purchased travel protection last year, compared with just 8 percent prior to September of 2001.

SITA, the global information technology provider for airline baggage handling, predicts this year that 30 million bags will be mishandled this year, with about 204,000 lost or stolen.

In the U.S. more bags are being lost than ever. Mishandled baggage reports increased 23 percent last year from 2003 with reports coming from 6 per thousand passengers compared to 4.91 two years ago, the company says.

Beth Godlin, executive vice president of Access America, said that “being prepared for the unexpected is particularly important when travel is experiencing a growth surge, as it is now.”

The Richmond, Va.-based provider of travel insurance and assistance offers a variety of insurance plans that provide reimbursement for lost or stolen baggage and repair of damaged items.

In addition, compensation is provided for additional accommodation and travel expenses in the event of delays of six or more hours. The Access America Classic provides baggage protection benefits of up to $1,000 per trip plus $200 per person for baggage delays.

“Being prepared for the unexpected is particularly important when travel is experiencing a growth surge,” Ms. Godlin said.

Per-trip travel insurance policies, which are the most popular kind according to Ms. Godlin, can cost anywhere from 4 percent to 8 percent of the price of the trip, while two annual policies are priced at $119 and $249.

SITA said that in 2005 the single largest cause of baggage delay was in transfer baggage mishandling, at 61 percent. This was followed by failure to load, at 15 percent, and ticketing error, at 9 percent.

Special Reports /

Luggage Loss Spurs Travel Insurance Buys

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