Claiming compensation from Royal Mail

[Michael_D]

There you go then. If it's really worth something send it by a carrier who will accept an agreed value....

I did notice that if the per chaser makes the claim it may be covered as that's what they purchased it for. eBay is different as the Royal Mail claim form has a desperate box for that. I am told but cannot say for certain, the sender gets full sold value as compensation is they sold on eBay through PayPal.


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[pearlescence]

Suggest you check the RM small print. Only material costs which you spent will be reimbursed. They sell the retail value insurance, of course they do, but pay the wholesale minus labour and profit. Do try complaining.
UK signed for just gets a signature to say something arrived. It carries no insurance beyond that of the ordinary mail and that insurance does not cover jewellery type items. Again, they sell you....
No point arguing with us. We are not RM

[ps_bond]

As I think I've mentioned elsewhere, I know a knifemaker who was bitten by this. 2 £600-£700 knives went missing with RM; they were adamant they'd only pay materials costs. He fought them tooth and nail and *finally* managed to get full cost reimbursed, but it took him about 8 months. Managing that I would expect to be the exception, not the rule.

[medusa]

This is all very depressing. Does anyone have a recommendation for an alternative international carrier which does give real insurance?

[Ebo Von Gaz]

Does this apply to the RM Special Delivery service too?

[ps_bond]

The one I described *was* RMSD.

[metalsmith]

Having experienced this from the end of being the purchaser I know that it is only the seller (really the poster - as they paid for the service) that has a contract with RM.
I note that in one (perhaps just an ) example 'the seller is only offered the wholesale price and NOT the retail price' for the pair of jeans. I note that they weren't offered the price of a bale of cotton. I'm not trying to wind folk up here, but yes I am being devil's advocate. I guess it doesn't matter what technical twists and turns are put in if the bottom line is that you won't get paid out the true value of the article. Basically if they do not 'deliver' (pun intended) what you expect of the service - even if the small print does allow them to wiggle out - then there is no need for that service. It is not fit for purpose.

Alternatives ..?

[surfergirl]

Sending my last packet to the LAO prompted me to write to RM about this very topic only recently. I’ve copied and pasted the email exchange below. Sorry about the length, but I thought it might be useful. Mods – please feel free to edit or delete if not appropriate.

Dear Royal Mail

I would like to enquire about compensation levels and the proof needed in the event of a claim when sending parcels via Special Delivery.

I'm a jewellery designer and maker and as part of my business, I send parcels to the London Assay Office for hallmarking as well as post pieces to consumers that they have purchased online.

These parcels contain silver and gold jewellery items sold at various prices.

Reading your guidance here: http://www.royalmail.com/sites/defau...ril2012%20.pdf it states that to claim for compensation for loss or damage, that you require "proof of the market value of the item."

What does 'market value' relate to? When I make something, I buy the raw material e.g. gold bullion, gemstones, chains, etc... from various suppliers. In order for it to be made into a piece of jewellery, I need to factor in my own labour costs. When I sell the piece, there is a retail cost which factors in other costs (without which, I wouldn't have been able to make the item) plus profit.

Please could you clarify what I can claim as the 'market value' and how should I provide proof of this in the event of a claim?

Dear Indi
Thank you for your email.
In the rare event of the loss of a Special Delivery item we would compensate on the basis of the cost of the raw materials used to make the piece and a reasonable sum for your time. We would need a breakdown of the costs and evidence of purchase price of the various components. We do not compensate for any profit you would have made.

Dear RM

Thank you for your response.

Please could you clarify what a ‘reasonable sum for your time’ actually means in monetary terms? I charge a certain amount per hour for my labour and would be expected to be compensated at the same rate.

A typical scenario:

I make a bangle which costs £250 to make which includes the materials cost, overheads and labour. The bangle sells for £500. This is posted via Royal Mail (RM) Special Delivery in accordance with all the terms and conditions but is lost.

I have two options as a retailer:
1. I can refund the customer for the bangle - £500.
2. I can offer to remake the bangle.

If the customer chooses option 1, according to what you have stated above, it seems I may only receive £250 in compensation from RM. Of course this amount is dependent on what a ‘reasonable sum for your time’ actually means in monetary terms so in theory, I could receive even less than £250. This would leave me out of pocket through no fault of my own as I would need to refund the customer the full £500.

If the customer chooses option 2, if I only receive £250 in compensation from RM (again, this amount is dependent on what a ‘reasonable sum for your time’ actually means in monetary terms), whilst this may cover the cost of the original, lost item, it does not cover my labour charges for having to make the item again.

The ‘evidence of purchase price’ would be the receipt I give the customer for purchasing the bangle at £500 so wouldn’t I be compensated this full amount plus whatever compensation is offered due to non-delivery?

Dear Indi
Thank you for your further email.
You are correct in saying that we would not compensate you for any profit you would have made. We would require evidence of reasonable production costs before any payment for manufacturing costs could be compensated.
Many commercial jewellers have their own business insurance that would cover them for these additional losses but it is not something that Royal Mail offer.

I have found it quite frustrating communicating with RM. They have a standard two day response to emails. Both my first and follow up email were answered by someone who had to pass it onto someone else taking another two days (in the second case I had to send a reminder email after 6 days of no one responding).

It also seems to be difficult to get a ‘straight’ answer. What is ‘evidence of reasonable production costs’ who is judging what ‘reasonable’ is? For example I may think it is ‘reasonable’ that I charge £15 per hour for my labour. How does RM gauge the ‘reasonableness’ of this charge? Against other people in the same business? By how long I’ve been in business? My qualifications? I still want further clarification from them but have been put off my their seeming lack of wanting to answer a question directly.

As in the bangle scenario above, a lawyer friend is adamant that I would be able to claim for the full cost of the bangle despite the ‘terms & conditions’ by RM. But how many people would get/be able to get a lawyer involved for losses of say £300?

If anyone would like me to continue this email exchange, I am more than happy to but if you could provide the question/s, that would be great!

[surfergirl]

To add to the scenario above, if the customer who purchased the bangle at £500 decided to post it to her mother as a gift and it was lost by RM, surely this person would be compensated £500 as that's what they paid for it and could provide a receipt to that effect.

Maybe we should be selling our pieces to ourselves before posting them onto the customer

[Patstone]

This reminds me about a transaction with British rail. The last international jewellery show in London my daughter and her boyfriend came up with me. We bought our tickets online, a few days before. When you collect your tickets from a machine on the station you have to put in a transaction code, mine was ok, so was hers but her boyfriends wouldn't accept the code. As the train was about an hour away the lady at the desk said that his best bet was to pay for the ticket at the office and claim the other money back. That was 6 months ago and she is still waiting, £80 down. !!!!!