Royal Mail
16/03/2010 Are Royal Mail playing "Hard Ball" when it comes to paying compensation or is it poor communications?
It looks like the jewellery trade is encountering difficulties again with their preferred carrier of valuables.
Royal Mail (RM) Special Delivery next day delivery service continues to be the most expedient carrier for the jewellery trade. For years they have promoted a secure delivery service for valuables and cash with ability to buy compensation up to £2,500.
In recent years the RM have attempted to overhaul their services and wished to apply restrictions to the values carried by them. The British Jewellers Association (BJA) lobbied them successfully and obtained a concession and agreement that the proposed rules would not apply to the next day service but that the new rules will apply to the 9.00am delivery service. When using the 9.00am delivery service the customer undertakes that the contents of a parcel will not exceed £2,500 which is the maximum available compensation for deliveries in the UK. Should the customer have a claim against RM for non delivery or loss then RM will not pay the compensation if subsequently it is demonstrated that the contents of a parcel exceeded £2,500.
Since then the jewellery trade has continued to operate within the slightly revised rules.
However we have received a number of reports recently from customers who are being refused compensation under the “next day service”. Royal Mail advise their customers of this rule by directing them to:
ftp://ftp.royalmail.com/Downloads/public/cmwalk/doc/active/doc36800003/Special%20Delivery%20Specific%20terms%20June09.pdf
Accordingly we consulted with BJA to see if anyone else has knowledge of this apparent change in rules. Our consultation coincided with their planned response and advice to the trade which is stated below:
Royal Mail Special Delivery – Will your claim be refused if you have sent over £2,500?
Royal Mail now include a clause 4.4 in their contractual terms for customers who have their mail collected stating: “You must not give us any single item whose contents have a total value of more than £2,500.” If you break this clause then you will not be paid any compensation for loss or damage and you will be liable to pay any legal costs, expenses, claims, losses, damages and awards incurred by Royal Mail as a direct or indirect result.
To avoid missing out on compensation for losses you should immediately check your copy of the contract to see if it includes clause 4.4. You or a member of your staff may have signed a new contract without checking the contents. If you cannot find your copy you should ask your local customer services representative if they have a signed contract which includes clause 4.4. Our information is that they are answering such questions honestly.
The only way to be absolutely certain that you will get compensation for parcels containing more than £2,500 (the cost to you - not the invoiced sale price to your customer) is to have a current contract without clause 4.4. or to take it to a Post Office Counter and ask for Special Delivery Next Day, a non-contractual service provided under the Postal Services Act 2000, which Royal Mail have been unable to amend. You may recall our successful campaign to resist changes to this service.
We agree with the advice offered by the BJA.
What is the effect upon my insurance?
If you have a contract and it includes said clause 4.4 then you must advise us in order that we can consider the implications - if any.
If you do not have a contract then in theory there is no change to the service and its business as usual; however in practice RM appear to be quoting this clause to ALL customers – even those who have used the Next Day service via the Post Office counter. Doubtless this will cause us all more frustration and additional work for as long as RM adopt this practice.
If you are experiencing this type of problem the only response can be to write back to the Post Office confirming that you are not a contract customer.
It is our understanding that until the PO can demonstrate a different interpretation, perhaps by quoting some other regulation then they will have to pay compensation eventually.
If in the future RM do find some way to amend their rules and regulations and compensation for higher value parcels becomes unavailable then this will mean the traditional insurers will suffer increased pay outs for postal losses. However if this occurs then the attraction and raison d’etre for using RM Special Delivery for higher value parcels will fade away. Thus this will create a gap in the market place for others.
There has been an expansion in Courier Services in recent years and GJIS recognizing this have already included provision for sendings by alternative carriers such as TNT, UPS, DHL and the like who operate scanning and tracking services. For one of these carriers the standard limit provided under the GJIS Jewellers Policy is £5,000 – unless you have opted NOT to insure sendings therefore it’s not insured. Higher limits can be negotiated upon request.
In conclusion you need to follow the BJA recommendations and check to see if you have a contract in the first instance and if you do check to see if it contains said clause 4.4. If it does please let us know.
If you have a current loss and have been directed or quoted clause 4.4 write to the person dealing with your claim at the Post Office and confirm that you are not a contract customer and if you continue to have difficulties request a copy of the contract you have signed.
