1. There is no such rule even for QA. They do compensate despite where you live when the baggage is lost. Your is still tracing.

2. You have mistaken I guess - there is something called interim relief when the baggae is lost for buying your essentials. QA too do provide that. But if you are a local resident you are not eligible for that. May be thats what you mistook as no compensation on lost baggage.

______________________________________________
Every society is judged by how
it treats it's least fortunates.