Courier Insurance/Compensation - are both parties covered or just one?

Tunstallstoven

Hi

I'm not sure why this has never occurred to me before!?! 

If I send an item that gets lost or damaged in transit - and the courier agrees and accepts the claim - do they pay both parties?  The sender no longer has the item.  The buyer is without their money.  Both have lost out.  Are both compensated?  

And does it differ amongst courier firms?

Many thanks

swingaloo

The courier pays compensation to the person who paid them for the postage. It is they who have the contract with the courier. The sender refunds the buyer as they do not have their item and then the sender claims for the loss.

Tunstallstoven

That makes sense, thanks for explaining.  

Occasionally the buyer pays the postage.  In those situations I guess the buyer has to look to get their money back from the courier for both the postage costs and the lost/damaged item?  So not such a good idea to book the courier as a buyer?  

Ta

swingaloo

If the buyer pays the postage and arranges the courier then it is them that has the contract and must claim for losses. But, if the buyer pays you for the postage, as with Ebay, and you post off the item then it is you that must claim for any compensation. 

GabbaGabbaHey

Tunstallstoven said:

The sender no longer has the item.  The buyer is without their money.  Both have lost out.

No. Only one party is disadvantaged. The seller no longer has the item but they DO have the money, so they have not "lost out". If they recompense they buyer, then the seller has lost the item, but the buyer has been made whole.

In neither scenario is it true that "both have lost out".

Tunstallstoven

GabbaGabbaHey said:

Tunstallstoven said:

The sender no longer has the item.  The buyer is without their money.  Both have lost out.

No. Only one party is disadvantaged. The seller no longer has the item but they DO have the money, so they have not "lost out". If they recompense they buyer, then the seller has lost the item, but the buyer has been made whole.

In neither scenario is it true that "both have lost out".

That makes sense, thank you.  

Not sure if I was overthinking it or underthinking it...  But whichever one, I was definitely thinking it wrong!