Does USPS insurance really protect sellers?

[Mishmashman]

Just saw a posting on another thread in which a user said he mailed a book insured for $150. The book got damaged in transit and not only did the buyer get his $150 insurance claim. He also got back the $150 he paid the seller. Apparently eBay debited the $150 from the seller's PayPal acct and returned it to the buyer. This is pretty troubling to me as I always insure books over $200. Isn't insurance supposed to protect sellers from this sort of thing?

[ItsJustRyan]

 

Hope I never find out...

[Columbia Comics]

Just saw a posting on another thread in which a user said he mailed a book insured for $150. The book got damaged in transit and not only did the buyer get his $150 insurance claim. He also got back the $150 he paid the seller. Apparently eBay debited the $150 from the seller's PayPal acct and returned it to the buyer. This is pretty troubling to me as I always insure books over $200. Isn't insurance supposed to protect sellers from this sort of thing?

 

There's something not right with this story.

 

When a seller/shipper mails a package, THEY contract with the USPS in terms of insurance and future claims. Not the buyer!

 

The USPS would not pay a claim to a receiver since the sender purchased the insurance.

 

The only recourse the buyer has is to go through Paypal and get a refund. Then its on the seller to get a refund from USPS. The seller should also get their item back (or the USPS will take it).

 

The buyer cannot be paid twice....

[mangbus]

Just saw a posting on another thread in which a user said he mailed a book insured for $150. The book got damaged in transit and not only did the buyer get his $150 insurance claim. He also got back the $150 he paid the seller. Apparently eBay debited the $150 from the seller's PayPal acct and returned it to the buyer. This is pretty troubling to me as I always insure books over $200. Isn't insurance supposed to protect sellers from this sort of thing?

 

There's something not right with this story.

 

When a seller/shipper mails a package, THEY contract with the USPS in terms of insurance and future claims. Not the buyer!

 

The USPS would not pay a claim to a receiver since the sender purchased the insurance.

 

The only recourse the buyer has is to go through Paypal and get a refund. Then its on the seller to get a refund from USPS. The seller should also get their item back (or the USPS will take it).

 

The buyer cannot be paid twice....

 

correct.

 

to the OP .. Someone was in a bad mood and wanted you to feel bad for them and made that story up.

[ComicCollectorx19]

Just saw a posting on another thread in which a user said he mailed a book insured for $150. The book got damaged in transit and not only did the buyer get his $150 insurance claim. He also got back the $150 he paid the seller. Apparently eBay debited the $150 from the seller's PayPal acct and returned it to the buyer. This is pretty troubling to me as I always insure books over $200. Isn't insurance supposed to protect sellers from this sort of thing?

 

There's something not right with this story.

 

When a seller/shipper mails a package, THEY contract with the USPS in terms of insurance and future claims. Not the buyer!

 

The USPS would not pay a claim to a receiver since the sender purchased the insurance.

 

The only recourse the buyer has is to go through Paypal and get a refund. Then its on the seller to get a refund from USPS. The seller should also get their item back (or the USPS will take it).

 

The buyer cannot be paid twice....

 

Isnt the problem that once the BUYER mails the package back to the SELLER, the insurance is VOID. so unless the buyer wants to file the claim insurance isnt really helping the seller?

[slym2none]

If that is the case, then both the seller & buyer don't understand how the insurance works. However, the seller can always re-mail the package back to the buyer so the claim can go forth from there, I believe.

 

So, lesson learned here: it is on the buyer to start the insurance claim process, not the seller. The buyer bought the insurance OWOTO, so it becomes their responsibility once a problem is known, be it damaged or lost parcels. The one problem I had as a seller where the buyer had a damaged parcel, as soon as they contacted me about it, I made sure they understood to NOT send me the comic(s) back but to take the entire parcel to their local PO and start the claim there.

 

 

 

-slym

[mangbus]

A claim may be filed by:

 

a. Only the sender, for the complete loss of a registered, insured, COD, or Express Mail item (including merchandise return service parcels to which special services were added and paid for by the sender).

 

b. Either the sender or addressee, for damage or if some or all of the contents of an article are missing.

[zuulioso]

A claim may be filed by:

 

a. Only the sender, for the complete loss of a registered, insured, COD, or Express Mail item (including merchandise return service parcels to which special services were added and paid for by the sender).

 

b. Either the sender or addressee, for damage or if some or all of the contents of an article are missing.

 

Incorrect. I insured a slab for $300 and it arrived cracked. It was packed securely following all known guidelines, but the package was crunched anyway.

 

I submitted a claim for the cost of re-holder and shipping to/from CGC as agreed with the buyer. It was a small portion of the total insurance amount.

 

Went through without issue and I reimbursed the buyer the amount of the claim.

[slym2none]

A claim may be filed by:

 

a. Only the sender, for the complete loss of a registered, insured, COD, or Express Mail item (including merchandise return service parcels to which special services were added and paid for by the sender).

 

b. Either the sender or addressee, for damage or if some or all of the contents of an article are missing.

 

Incorrect. I insured a slab for $300 and it arrived cracked. It was packed securely following all known guidelines, but the package was crunched anyway.

 

I submitted a claim for the cost of re-holder and shipping to/from CGC as agreed with the buyer. It was a small portion of the total insurance amount.

 

Went through without issue and I reimbursed the buyer the amount of the claim.

 

But your parcel wasn't lost - that is what a) above covers. Your claim would have been an example of b) above.

 

 

 

-slym

[slym2none]

A claim may be filed by:

 

a. Only the sender, for the complete loss of a registered, insured, COD, or Express Mail item (including merchandise return service parcels to which special services were added and paid for by the sender).

 

b. Either the sender or addressee, for damage or if some or all of the contents of an article are missing.

 

I kind of forgot that in a lost parcel situation, only the sender (seller) can claim the insurance, and has to re-imburse the buyer. Luckily I have never had anything lost in the mail, either sent or to have been received.

 

(thumbs u

 

 

 

-slym

[fantastic_four]

When a seller/shipper mails a package, THEY contract with the USPS in terms of insurance and future claims. Not the buyer!

 

This is why I've never bought shipping insurance and never will. Buyer pays, but the seller is in control of the product and can manipulate that as they see fit. If I pay for a service, it should be mine, and I'm not giving control of that service away for free to someone else who I may or may not have a reason to trust they'll consider that service I paid for to be there for my benefit.

[zuulioso]

A claim may be filed by:

 

a. Only the sender, for the complete loss of a registered, insured, COD, or Express Mail item (including merchandise return service parcels to which special services were added and paid for by the sender).

 

b. Either the sender or addressee, for damage or if some or all of the contents of an article are missing.

 

Incorrect. I insured a slab for $300 and it arrived cracked. It was packed securely following all known guidelines, but the package was crunched anyway.

 

I submitted a claim for the cost of re-holder and shipping to/from CGC as agreed with the buyer. It was a small portion of the total insurance amount.

 

Went through without issue and I reimbursed the buyer the amount of the claim.

 

But your parcel wasn't lost - that is what a) above covers. Your claim would have been an example of b) above.

 

 

 

-slym

 

I misunderstood. I equated "complete loss" to monetary loss not physically lost in the mail.

[Not*Sure*]

USPS has always paid me when an item was broken or busted in transit. Not the buyer.

 

But UPS screwed me royal.

[slym2none]

When a seller/shipper mails a package, THEY contract with the USPS in terms of insurance and future claims. Not the buyer!

 

This is why I've never bought shipping insurance and never will. Buyer pays, but the seller is in control of the product and can manipulate that as they see fit. If I pay for a service, it should be mine, and I'm not giving control of that service away for free to someone else.

 

That is only in case of lost parcels. Damaged/partially missing product claims can be made by the buyer.

 

 

 

 

-slym

[slym2none]

A claim may be filed by:

 

a. Only the sender, for the complete loss of a registered, insured, COD, or Express Mail item (including merchandise return service parcels to which special services were added and paid for by the sender).

 

b. Either the sender or addressee, for damage or if some or all of the contents of an article are missing.

 

Incorrect. I insured a slab for $300 and it arrived cracked. It was packed securely following all known guidelines, but the package was crunched anyway.

 

I submitted a claim for the cost of re-holder and shipping to/from CGC as agreed with the buyer. It was a small portion of the total insurance amount.

 

Went through without issue and I reimbursed the buyer the amount of the claim.

 

But your parcel wasn't lost - that is what a) above covers. Your claim would have been an example of b) above.

 

I misunderstood. I equated "complete loss" to monetary loss not physically lost in the mail.

 

No worries, mate!

 

(thumbs u

 

 

 

-slym

[slym2none]

USPS has always paid me when an item was broken or busted in transit. Not the buyer.

 

Exactly!

 

(thumbs u

 

 

 

-slym

[fantastic_four]

USPS has always paid me when an item was broken or busted in transit. Not the buyer.

 

Exactly!

 

So which do you believe? You agreed with Not*Sure* that the seller files the claim, but you told me the buyer does it. My understanding is that it's the seller.

 

Classic example of why I'll never do shipping insurance is item gets damaged in shipping, seller gets a full refund but refuses to give that refund until the buyer sends the damaged item back. Hold on there, slim! YOU didn't pay for that service, I did, so if anyone gets to keep this damaged freebie, it's me. I'm not giving sellers that free option to hold my insurance settlement hostage so that they get a free reduced-value product they already got paid for in full to try to sell again. If someone's thought on this is that the seller deserves that damaged item because they're the one who paid the USPS, then that's exactly the mistaken perspective that causes me to rebuke the idea of shipping insurance--my money as the buyer paid for that thing, not yours. The insurance and its settlement is mine. You bought it on my behalf.

[slym2none]

USPS has always paid me when an item was broken or busted in transit. Not the buyer.

 

Exactly!

 

So which do you believe? You agreed with Not*Sure* that the seller files the claim, but you told me the buyer does it. My understanding is that it's the seller.

 

A claim may be filed by:

 

a. Only the sender, for the complete loss of a registered, insured, COD, or Express Mail item (including merchandise return service parcels to which special services were added and paid for by the sender).

 

b. Either the sender or addressee, for damage or if some or all of the contents of an article are missing.

 

In the case of damaged or partial missing product, either the seller or buyer (sender & receiver, respectively) can file a claim. What part of this can you not understand?

 

*shrug*

 

Classic example of why I'll never do shipping insurance is item gets damaged in shipping, seller gets a full refund but refuses to give that refund until the buyer sends the damaged item back. Hold on there, slim! YOU didn't pay for that service, I did, so if anyone gets to keep this damaged freebie, it's me. I'm not giving sellers that free option to hold my insurance settlement hostage so that they get a free reduced-value product they already got paid for in full to try to sell again. If someone's thought on this is that the seller deserves that damaged item because they're the one who paid the USPS, then that's exactly the mistaken perspective that causes me to rebuke the idea of shipping insurance--my money as the buyer paid for that thing, not yours. The insurance and its settlement is mine. You bought it on my behalf.

 

I hope an item of yours never gets lost or damaged in transit then. You will have no recourse whatsoever.

 

 

 

-slym

[Jiminy_Cricket-migration]

This is it in a nutshell...

 

1. Buyer must keep the item and packaging for inspection if the insurer wants it.

2. Seller files the claim and makes sure they pay the seller, not the buyer.

3. At some point the seller pays/refunds the buyer and the insurance pays the seller or they don't.

 

The buyer has no obligation/responsibility/authority to deal with insurance. The seller gets reimbursed from insurance (or they don't if claim is denied). The buyer gets refunded from seller and keeps the item for USPS/FedEx/UPS to inspect and pick-up. If they don't, buyer keeps damaged item also.

 

That's it.

[fantastic_four]

I hope an item of yours never gets lost or damaged in transit then. You will have no recourse whatsoever.

 

Collector's insurance covers it. You're tightrope walking without a net if you have more than a few thousand bucks' worth of comics and don't have that kind of insurance, and paying shipping companies for their insurance product is a poor substitute.