The U.S. Department of Transportation has increased the amount of money passengers can receive in compensation for getting bumped from a flight or if an airline mishandles their bag. This revised rule goes into effect Aug. 25, 2015.
Back in 2012, the DOT’s original Passenger Protections rule gave travelers up to $3,400 for a lost or damaged bag. The new rule bumps it up 100 bucks to $3,500.
Tip: Most airline contracts of carriage forbid passengers from packing certain valuables in checked-bags including electronics and jewelry so it seems unlikely these items would be covered no matter what happens to the bag.
In the past, passengers who were involuntarily bumped from a plane received from $650 to $1,300 depending on the length of time it took a carrier to get the passenger on another flight. This compensation has since been raised to $675 up to $1,350.
Tip: This compensation is or involuntary bumping only; it does not include passengers who agree to be bumped for a voucher. Please note: Victims of involuntary bumping can get their compensation in cash (or more likely, a check). Be sure to insist on cash.