Unfair/inadequate Parcelforce Compensation

ErnestEntrepreneur

I run a small online shop selling American cuesports equipment. A customer purchased a very valuable set of billiard balls for £275 and I sent them via a tracked Parcelforce service which would require a signature from the recipient.

Unfortunately, the courier/driver didn't wait for a signature, but signed "By door" himself, and when my customer arrived home his parcel was nowhere to be seen.

I submitted all the details via Parcelforce Worldwide Claims Online, and after a lengthy period of investigation, they have apologised for the "poor service on this occasion" and sent me a cheque for £113.14 - comprising £100 for the "compensation level" and the £13.14 postage I paid.

I don't have an axe to grind here, Parcelforce have reliably delivered lots of orders for me, and I appreciate the gesture, especially as I didn't pay for any extra insurance, but understand this, but my goods cost me £192.50 to purchase... I have had to replace my customer's goods at my expense, why don't Parcelforce have to repay me for the total loss.

They have declared this case closed, but I was wondering if I could take this to the small claims court because this doesn't seem fair?

Ms_Chocaholic

Unfortunately you don't seem to have insured your parcel up to the value of the goods you sold - £275 so therefore are only entitled to the compensation you purchased - £100. Sorry but maybe next time you need to insure parcels for their full cost.

RFW

ErnestEntrepreneur wrote: »

I don't have an axe to grind here, Parcelforce have reliably delivered lots of orders for me, and I appreciate the gesture, especially as I didn't pay for any extra insurance, but understand this, but my goods cost me £192.50 to purchase... I have had to replace my customer's goods at my expense, why don't Parcelforce have to repay me for the total loss.

You don't have an axe to grind, admit to not paying extra insurance and want to take them to small claims court?


Consider yourself having self insured. If you'd paid the extra insurance for all the orders they've successfully delivered I'd wager you'd be worse off.


You can take any case you like to small claims court, winning one is another matter and it costs money you may not get back.


On another point if the post cost you £13 then you may well find that you can get a better deal with some other couriers with higher insurance.

bazzyb

ErnestEntrepreneur wrote: »

why don't Parcelforce have to repay me for the total loss.

Because...

ErnestEntrepreneur wrote: »

I didn't pay for any extra insurance

soolin

Also as a business there may be something in the terms and conditions about only paying the cost of the item out rather than the sale price, as of course you are using this on a B2B basis.

Royal Mail and at least one courier I have used in the past do treat business sales differently and will not repay your 'profit' even if you do insure.

unforeseen

We ship, on average, 15 laptops or desktops throughout the country on a daily basis. Monthly bill around the £10k mark. Even though each of these devices is around the £500-£2500 mark we don't bother with additional insurance as the cost would outweigh our losses on the rare occasion that one goes missing.

ErnestEntrepreneur

The thing that irks me, is that insurance just seems to be saying, "do you want to pay us to do our job properly".

Surely, if they destroy or lose my package while it's in their care, THEY should be the ones that buy insurance?

I don't buy £200 worth of shopping to be delivered from the supermarket and then get offered insurance to make sure it's delivered correctly in good condition.

Doesn't anyone else just think this "insurance" offer is just an opportunity to add value to a sale.

I don't think they use a separate insurance broker to provide the insurance, do you?

It just seems a bit strange and unfair that if I can hire a £30,000 car for £50 a day, and pay £15 for a day's insurance - charging the same amount to insure a £275 parcel to be delivered is a bit steep.

I'm not saying I've got a leg to stand on, as I'm sure a big company like Parcelforce have an iron-clad legal document that I have agreed too somewhere, which limits their liability to £100 and return of the postage fee, but...

...IS IT FAIR?

I ask, obviously, because I don't think it is.

pinkshoes

There was a case recently where a customer won the full compensation due to the courier being negligent.

They argued that the insurance was for loss or damage in transit, but a courier leaving a parcel on the doorstep was negligent as they had paid for a signature from the customer, not for the courier to sign himself and leave it on the doorstep.

What service did you pay for? Did you pay for a signature at the address? Check your contract...

RFW

pinkshoes wrote: »

There was a case recently where a customer won the full compensation due to the courier being negligent.

In the past I had a claimed denied by a courier (I don't think they exist now, they were merged into one of the others). They said the items I sent weren't insured. My claim was twofold, I had told the rep who sold me the account what I would be sending and they were on my "included" list when I signed up and also that their driver had (oddly) admitted to chucking the parcel over a fence that may or may not have been the correct address.
When I pointed out that they were negligent and I could let everyone know about their incompetent employees they paid up.
In the case of the OP (purely on delivery) this may or may not be the driver's responsibility. The parcel may well have been stolen from the buyer's property having been left in a safe place (unlikely, but possible). It could also be a lying buyer. There are, in this case, a number of possibles that say it isn't the driver's fault and the payment from Parcelforce seems like a good one under the circumstances.

RFW

ErnestEntrepreneur wrote: »

The thing that irks me, is that insurance just seems to be saying, "do you want to pay us to do our job properly".

Doesn't anyone else just think this "insurance" offer is just an opportunity to add value to a sale.

I don't think they use a separate insurance broker to provide the insurance, do you?

I doubt they use any insurance broker for single parcels. You also don't need insurance on £275 you need it on £200, your replacement cost.
The extra insurance often has a different delivery option, high value items will get treated differently.
Yes, insurance is another money raising stream for them but it's also a negotiation for the sender. Every courier loses items, usually below 1% to 5%. As senders we have to decide if losing 5 parcels in 100 (PF will be nearer to 1%) is worth that extra insurance. I've always, at least mentally, factored in loss by courier in my business. In this case you've managed to get more than half the loss back.

shaun_from_Africa

soolin wrote: »

Also as a business there may be something in the terms and conditions about only paying the cost of the item out rather than the sale price, as of course you are using this on a B2B basis.

That's exactly what they do.

For Damage, Loss or Missing Contents claims, the lowest of the cost/sale price of the contents will be used to settle a claim subject to the maximum compensation available on the service used, allowing for wear and tear and depreciation (where appropriate).

ErnestEntrepreneur, the item cost you £192.50 to purchase and you received compensation of £100 so you are £92.50 down.
I wouldn't want to take the risk of court action for this amount.