USPS insurance Claim proceedure change

[dolan11]

USPS always had the option of requiring a damaged item to be taken to a post office, but I've never had them do that in the 10 years I've been selling on eBay.  I've been informed by my local postmaster that the USPS office in St Louis is now requiring that all insurance claims require that the buyer take the item to a post office.  I am very concerned about how the affects my customers.  If the item was damaged in shipment, there are only 2 things that could have happened; either the seller didn't pack adequately or the post office mishandled the package.  However, this new policy punishes the buyer instead.  Many people who shop online are disabled or rural residents or just plain too busy.  Asking them to make a trip to the post office is not reasonable.  I submitted 2 claims recently  which included pictures of the box, packing and the damaged item.  Didn't make any difference;  post office is still requiring the buyers to take the items to the post office.  I realize that I could withhold the refund until my buyer takes action or require that the buyer file the claim, but that's not the way I treat my customers.  When online sales are growing by leaps and bounds, the post office seems to be discouraging sales by increasing prices and decreasing customer service. 

[nobody*s_perfect]

Buyers are under no obligation to cooperate with your request to take their package to the PO.  Hence, there is no burden on the buyer, since they can simply refuse to do it.  Under eBay's buyer protection policy (which they call the "Money Back Guarantee") the buyer is entitled to a full refund regardless of whether the seller files an insurance claim.

https://www.ebay.com/help/policies/ebay-money-back-guarantee-policy/ebay-money-back-guarantee-policy...

[dolan11]

So, if the buyer is under no obligation to take the package to the post office, then the post office will deny insurance coverage so the seller is just out all the money?

[nc-daydreamer]

New policy? I thought it was always this way.  At least for the last decade that I have been using this service.  Not only for customer's but for any recipient of anything - like Grandma's birthday gift or the care package for the new college student sibling.  If it is a customer, and the item is worth the effort to have verified, along with the refund, I offer them a few extra dollars for their trouble if they agree to cooperate.

Not only does the receiver of the package take in the item itself, but the receipt to prove value and the damaged box, padding, etc. All of this must be inspected before the claim will be honored. The PO has no way of knowing if the pictures being presented is the actual item or not or if the damage was done yesterday or 100 years ago.  Yes, the seller is just out of the money and the item.

No, you cannot withhold refund. You can keep good records and take it as a business loss when you file taxes using the Schedule C.  Some homeowner's policy covers things like this - if  it is expensive, I'd certainly ask them about it.

The only thing shipping insurance is good for in my opinion is to ensure the package arrives (does not become lost), not that it will arrive safely. The will eventually pay off on a lost package. The sender must over-pack and pay the extra postage for the larger, heavier than necessary package being shipped; in effect, self-insuring the item.

[nobody*s_perfect]

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@nc-daydreamer wrote:

New policy? I thought it was always this way.  ...

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The official USPS policy is that they MIGHT ask the recipient to present the damaged package at their local PO.  Often, the claim will be granted based only on images, especially for lower-value items.

2.0 Providing Proof of Loss or Damage

If a claim is filed because some or all of the contents are missing or damaged, the addressee must retain the mailing container, including any damaged articles, all packaging, and any contents received. Upon written request by the USPS, the addressee must make this proof available to the local Post Office for inspection, retention, and disposition in accordance with the claims decision. Failure to do so will result in denial of the claim.

https://pe.usps.com/text/dmm300/609.htm#ep1097134

[dolan11]

I guess my first note was note clear;  yes, it's always been the policy that the post office 'may' require, but it's my understanding that it's now mandatory for all insurance claims.

[nobody*s_perfect]

I guess my post wasn't clear.  I quoted the official USPS manual, which clearly shows that it's not universally mandatory.

[dolan11]

Thank you!  I understand and appreciate your help.

[tena527]

I have had this happen in the last 2 insurance claims.  They send me a letter asking me as the seller to take the item to the post office for inspection along with packing, box etc although I have sent pictures of all along with the insurance claim. Of course the item has been sent so it is in another state.  I already had refunded the customer in both cases and they didn't respond when I contacted them.  I talked to 2 different representatives at Ebay and received 2 different solutions.  The first told me to have the customer file an Ebay claim and have the item returned to me & I take the item to the post office.  Of course I would have to pay return postage.  The 2nd representative told me to contact the customer & have them take the item to the post office for inspection notifying EBay at the same time of the situation.  So not sure what will happen on the next claim.  I consequently have pulled all my listings that have glass.  It is just too risky & don't like losing the cost of the item and the postage.  

[tena527]

Will be interesting so see how other sellers handle this similar situation. 

[southern*sweet*tea]

All major carriers CAN require an inspection before issuing insurance. Doesn't necessarily mean they WILL require an inspection.  I would imagine that inspection would be normal for higher value items, not so much on a $20 widget.

[c1641]

I've had problems with 2 claims.   One for $33 and the second for $49.   I'm now on the final appeals, they seem to change their requirements everytime they deny the claim.  I'm now dealing with the Consumer Advocate for US Postal Service.   Maybe they have some common sense.

[tena527]

Please keep me posted. I have decided will have damaged items returned and then file. I will be out the return postage but...

[penguins_dont_fly]

@dolan11 

Out of curiosity ... how many claims have you filed in the past 12 months?

I'm just wondering if an abundance of claims might trigger the USPS into requiring certain claims to be physically verified?

[cream_couture]

I've never had any of the claims I have filed require proof in person, but you have stated it is the post office in St Louis. I have only filed a few with the post office over the years and they have always sent me a check within 7 or so days of filing.

I suggest switching to Shipsurance to insure your packages. They have much easier processes for filing, even if the buyer refuses to participate.