In regards to the low liability amount, this is correct. It does not matter if you saw your bags in Newark or not. There are two conventions for international baggage, the Warsaw convention and the Montreal convention. Both govern how much an airline is responsible for when you travel internationally.
Under Warsaw, they are only liable for $9.07 per pound up to a maximum of $640. Under Montreal, the maximum is 1,000 SDR (special drawing rights.) SDR is essntially a universal currency. You can Google the exchange rate, but right now it comes out to $1,475.25. This standard applies to anyone who travels internationaly, on any airline, even if part of you trip was also demestic.
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