http://www.newswire.ca/en/releases/a.../30/c3285.html

OTTAWA, April 30 /CNW Telbec/ - The Canadian Transportation Agency today
ruled that, for international carriage, Air Canada is liable for up to the
maximum amount of liability provided by the Montreal Convention, that is,
1,000 Special Drawing Rights, in cases of loss of items contained in checked
baggage that it agrees to carry while such items are in its care and control.
As with any other currency, the value of one "Special Drawing Right"
fluctuates throughout the year and was worth, as of April 29, 2008, $1.646830.
With that in mind, travellers should always remember that air carriers have
limited liability for lost, delayed or damaged baggage. If, in the opinion of
the travellers, the limit of liability is too low, they should consider
declaring a higher value for their checked baggage and buying supplementary
insurance to obtain better compensation. As well, air carriers will not
normally compensate travellers for more than the actual loss suffered and will
likely request proof of loss. It is always prudent to carry certain items,
such as valuable items, medication and electronic equipment, on-board the
aircraft.
While Decision No. 227-C-A-2008 only concerns international carriage on
Air Canada, the Agency could, in any future Decisions dealing with the loss of
checked baggage, take its previous Decisions into consideration for
consistency purposes. Therefore, the Agency intends to send out letters to all
air carriers offering services within, to or from Canada to make them aware of
this precedent-setting Decision.