WASHINGTON (AFX) - U.S. airlines' liability for lost or damaged luggage will soon increase to $3,000 per passenger from the current limit of $2,800 under a rule issued by the Department of Transportation Monday.
Airlines could pay an additional $2.6 million per year to passengers as a result of the new regulation, the department estimated.
Under the department's rules, airlines cannot limit their liability to less than $2,800 for losing or damaging passengers' luggage. Passengers can buy additional insurance if they believe their luggage is more valuable than that.
The increase in the liability limit is intended to keep pace with inflation, the department said. The new $3,000 limit will take effect Feb. 28, 2007.
The department did not name specific airlines but said it would apply to any flight using 'large aircraft' and said that only small air taxis and commuter air carriers are exempt from the rule.
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