Thanks for the link. I assumed that since credit card insurances also do not typically cover for incidentals at your home airport that there was something legitimate that AC can get away with. One thing to point out (and I'm not sure if it makes a difference) is that the references you provide are for US regulations, not Canadian.

I didn't say in my previous post that AC would never pay for incidentals at one's home airport, but that they normally wouldn't. IMHO it is harder for someone to make a case for compensation for delayed baggage when you are at home. If all you had in your bag was clothes, surely you have other clothes you can wear for a day until your bag shows up. In special cases, such as the car seat, it is not reasonable to assume that someone will have a spare car seat kicking around that they can just install in a vehicle, thus the loaner...

If you are away from home without bags, that is a completely different situation IMHO as the things you need while you are away were likely in the bag and the airline should compensate accordingly (within reason).