Your luggage is more likely to be lost or stolen when you travel by airplane (as opposed to bus or train) because you are separated from your bags for a period of time. If you are traveling by air and your luggage does not arrive in the baggage claim area, find the baggage agent on duty as soon as possible. You will be asked to fill out a form identifying your luggage and its contents. Be as detailed as possible. Also, make sure to get the phone number of the person with whom you will need to follow up. Due to enhanced airline baggage tracking, 99 percent of all lost luggage is eventually reunited with its rightful owner, often in a matter of hours. If your luggage doesn't turn up in a day or two, then it is probably officially lost or stolen.Once your luggage is officially lost or stolen, you will need to submit a claim promptly to the airline. In most cases, your claim will be transferred to the airline's central office and then negotiations will begin. Though you will likely receive some monetary compensation, airlines do not automatically pay the full amount of every claim they receive. Like insurance companies, airlines consider the depreciated value of your possessions, not their original price or the replacement cost (i.e., the price it would cost to go out and replace the items today). If a large amount of money is involved, airlines may expect to see sales receipts and/or other documentation. In any case, airlines will not pay you more than the standard ceiling amount per passenger (e.g., $2,500 per passenger), which can vary by airline. If the airline offers you free tickets on future flights in exchange for the cash payment, make sure to find out if the tickets have any restrictions. Generally, it takes an airline anywhere from six weeks to three months to settle your claim.In addition to notifying the airline, you may need to notify the airport or local police. If you had any important papers in your luggage, such as a wallet or passport, you should cancel any travelers' checks, bankcards, or credit cards and notify the registry of motor vehicles and/or the passport office.To protect yourself against lost or stolen luggage, carry all cash, travelers' checks, travel documents, jewelry, and other valuables in a carry-on bag or on your person. To prevent someone from carrying off your look-alike bag, consider tying a colored ribbon or elastic band on the handle as an identifier.