Hermes via parcel2go lost an insured item but refuse to pay compensation

tb111

Hi

I sent an item internationally with parcel2go, via Hermes. It was insured for £300, which cost me around £15 extra, IIRC.

The item was not new, but valuable, the value when bought new was well over double what it was insured for.

Hermes lost the item and have no tracking information beyond collection. Parcel2go have confirmed via email that they "can't locate" the item.

So - I make a claim, for the value of the item I insured them for. I send them 1) proof of drop-off this is accepted, 2) proof of non-delivery, also accepted, and 3) proof of value. This is REJECTED.

I speak to their twitter team why this was rejected. They tell me I need to send proof of value as per their t&c - THEY ADVISE ME to send screenshots of similar valued items as proof, which I send.

This is then rejected. I speak to the twitter team again. They tell me I need to send a paypal or bank statment. I tell them I don't have this, but it's worth over £300 which is why I insured it as such and I have shown via screenshots.

They tell me screenshots wont suffice. So I email their claims team.

The claims team tell me that screenshots WILL suffice as proof, directing me to their t&c (below). I send them screenshots. I have email and direct message on twitter saved, obviously.

They then "speak to their supervisor" and change their mind. Must be bank statement or paypal. They tell me they will pay me nothing.

I reply saying that if 2 members of their team think that screenshots of similar items count as proof of value, a small claims court is likely to think the same.

Then they offer me £150. I refuse.

So I intend to take them to small claims court. I will also claim costs resulting from lost (have had to rent equipment I was sending over) and court fees.

Does anyone have any experience of a case like this? Comments? It seems very clear to me that they have lost the package and are trying to weasel out of paying the cover on a technicality. As I told them, if they could prove that they delivered it and I was claiming they didn't, it could be fraud i.e. overvaluing item. But the idea that I would pay to over insure an item and hope it got lost is laughable.

Thanks!

Their terms and conditions:

"6.8 In order to ascertain the extent of our liability above, we shall require proof of the value and weight of the entire Consignment and any part or parts of it which make it up and you must ensure that, prior to our collection of the Consignment, you have a record of these. For the avoidance of any doubt, and without affecting clause 6.5, we shall only be liable for the replacement value of the Consignment and not for any sums that would amount to profit on the Consignment or applicable value added tax (or like tax) on such profit."

cono1717

I think you definitely have a claim for the cost of the same item back, I imagine thought it will be similar to car insurance in that they will only pay for the market value of the item and not necessarily what you quoted - also over quoting the insurance is irrelevant if they do that, you would only the one that loses out in that case.

Fair enough if they pay you exactly what you quote the value of the item to be but it looks like they are asking for proof of the value and will pay you that. Out of interest how much is the market value of the item? Is it more or less than the £150?

tb111

The total value of the package is well over £600 new. Since the contents are second hand, their value is obviously less, but still over £300. Much more than the £150 they offered me. Plus that £150 they offered would include the £30 or so (including insurance) that they charged for delivery, which I think they should have to pay regardless since they lost the item i.e. didn't make the delivery

As I said, the problem is I don't have bank transfers/paypal - so their excuse for not paying out is that the screenshots of similar items do not count as proof of value.

cono1717

You are definitely entitled to the shipping back as well because the service was not completed.
The difficulty here is that I don't believe they are underwritten by any policy. Start by sending a letter before action advising them of their terms and conditions above - send them the proof of the sales team saying that screenshots and pictures of other items are proof enough.

Also worth checking if their T&C's say weather or not you have to use a bank transfer or paypal.

tb111

I suppose the most relevant parts are:

We will not be liable to repay you the market value of the Consignment as at the time it was purchased by you. Consignments by their nature are subject to depreciation. You must take out a “new for old” compensation policy should you wish to be compensated in this way.
6.8 In order to ascertain the extent of our liability above, we shall require proof of the value and weight of the entire Consignment and any part or parts of it which make it up and you must ensure that, prior to our collection of the Consignment, you have a record of these. For the avoidance of any doubt, and without affecting clause 6.5, we shall only be liable for the replacement value of the Consignment and not for any sums that would amount to profit on the Consignment or applicable value added tax (or like tax) on such profit.

There is no mention of paypal or bank transfer anywhere in the t and cs.

Regarding the indirect costs (ie having to rent the item that was meant to be delivered in the meantime), it seems I can claim for this as well, although it's not that much... at least for now. I've also contacted citizen's advice but I don't get the impression they will be able to do much.

6.4 We shall only be liable for damage or loss caused to you if it is caused by our negligence, breach of duty or other wrongful act or omission, and only subject to the limitations set out within this clause 6 and clause 7;
6.5 We shall not be liable to you under any circumstances for any direct or indirect loss (including, but not limited to loss of profits, or loss of goodwill) or for any other special or indirect losses, costs, damages, or claims which do not arise naturally as a result of our negligence, breach of duty, or other wrongful act or omission.

tb111

It's not even *that* much money it's just the fact they are being so underhanded - they admit they lost the package, they admit I took out 300 of insurance and they originally said that the proof of value would be acceptable. Now they've changed their mind and they're trying to exploit vagueries in the wording of their own t and cs to wriggle out of what they clearly should pay.

dekaspace

Its common im afraid, 3 years back I bought a laptop for £320 used that ended up faulty and they refused to pay out on it as wanted evidence it wasn't sent that way and a private report costing over £100.

tb111

dekaspace wrote: »

Its common im afraid, 3 years back I bought a laptop for £320 used that ended up faulty and they refused to pay out on it as wanted evidence it wasn't sent that way and a private report costing over £100.

Parcel2go did?? I guess seller blames courier, courier blames sender in that case.

But in my case they've lost it, they admit they lost it, they acknowledge I took out insurance, they tell me to send screenshots of similar items as proof of value then suddenly they decide they don't want to pay, changing the bar! I don't see how they have a leg to stand on

tb111

private report costing over £100.

Just noticed this - do you think their policy may be to make claiming difficult in the hope the claimant will give up and just except their goodwill gesture?

In my case they offered £150 as goodwill, almost immediately, which makes me think they know they are in the wrong so are trying their luck using £150 as bait.

naedanger

tb111 wrote: »

Just noticed this - do you think their policy may be to make claiming difficult in the hope the claimant will give up and just except their goodwill gesture?

In my case they offered £150 as goodwill, almost immediately, which makes me think they know they are in the wrong so are trying their luck using £150 as bait.

I agree. I don't think they would offer you £150 unless they thought you had a good case, were you to take them to the small claims court.

It may be worth reading the following information.

https://www.judiciary.gov.uk/wp-content/uploads/JCO/Documents/CJC/Publications/Other+papers/Small+Claims+Guide+for+web+FINAL.pdf

https://www.gov.uk/make-court-claim-for-money/overview

tb111

Thanks this is great help!

I suppose it comes down to whether they can convince the judge that by stating I must provide "proof of value" in their terms and conditions, they can insist on seeing a payment receipt in order to pay out on the goods I bought cover for & they lost.