Damaged check in bag

I recently flew etihad airways. When i picked up my checked in bag, it had a large hole in it. After reporting it to the baggage counter, Veddy the staff on duty, said to me that it is wear & tear and will not be replaced. I am not sure how a gaping hole in my bag is wear & tear but rather lack of care by the airline. Its seems the airline covers itself so well that they will almost never replace/repair a damaged bag. Etihad has certainly lost my support.