This is the Travel inconvenience part of the cover - i.e. reimbursement for emergency supplies you buy because of your baggage delay or loss (the $700pp and the additional $700 after 48 hours). To be covered, the emergency supplies must be purchases on the Amex Charge card.
The Baggage, Money and Documents cover (which covers actual loss, not just temporary and emergency replacement) doesn't have this exclusion.
An interesting variation, which I picked up after reviewing the policy after one of my bags decided to go to SYD-PER instead of SYD-BNE, is that there is no exclusion on the baggage delay if you are returning home - so theorectically (as there were 2 of us) we were entitled to up to $1,400 of emergency supplies because our bag was delayed (even though we had returned home). The reason I believe this to be explicitly the case, is that the next clause which allows for further supplies if the delay extends beyond 48 hours expressly excludes eligibility if you have reached your residence. The entitlement to claim for emergency expenses even when you have reached home seems very generous.
