Looking ar article 22 of the Montreal Cnvention, it would seem that the XDR1288 liability only applies to checked luggage given the reference in the statement
Originally Posted by Montreal Convention
In the carriage of baggage, the liability of the carrier in the case of destruction, loss, damage or delay is limited to 1 000 Special Drawing Rights for each passenger unless the passenger has made, at the time when the checked baggage was handed over to the carrier, a special declaration of interest in delivery at destination and has paid a supplementary sum if the case so requires.
The 1000 limit has increased has increased to 1131 and then to 1288