In case of damaged luggage, you shall submit proof of damage for getting Air Canada to make repairs. You shall submit this proof (which is the photos of baggage with tags, photos of tickets and photos of damage) either immediately on discovery of damage or within 7 days of having receipt of luggage.
The limitations of liability for damage, loss or delay in delivery of luggage is up to CAD 1500 per passenger when the travel is within Canada. In cases of international travel, where Warsaw Convention applies, liability is limited to USD 20 per kg per passenger for checked and USD 400 per passenger for carry on baggage. Where the Montreal Convention applies, liability of Air Canada is limited to SDRs 1113 per passenger.
In the event of international travel, it will be the Montreal Convention and the Warsaw Convention which will apply for defining the liability of the carrier in the event of death, body injury, loss, delay or damage to baggage.
So, for the international travel on Air Canada, where the Montreal Convention applies, the liability of Air Canada will be:
a) unlimited in case of death or body injury;
b) 1131 SDRs in respect of destruction, damage, loss or delay in carriage of baggage;
c) 4694 SDRs per passenger in case the damage to baggage happens due to delay in your journey.
However, where the Warsaw Convention is applied, the liability limit is:
a) 16600 SDRs for death or body injury if Hague Protocol to Warsaw Convention is applicable. Or, 8300 SDRs if only the Warsaw Convention is applicable. However, for journey to, from and stopover in USA, this limit can not be less than $75000 per passenger.
b) 17 SDRs (USD 20) per kg for loss, delay and damage to checked baggage and 332 SDRs per passenger for unchecked baggage.