posted on July 25, 2001 10:26:31 PM
All of a sudden I am getting an extraordinary number of buyers asking me to pad their postal insurance. Usually they just say 'Please insure it for $30 while they may have paid $14 for the item.
It seems just common sense to me that this is just frauding the Post Office in the event the package is lost or damaged. And on higher priced items it seems you could be setting yourself up as a particpant in a deliberate fraud on the part of the customer who would perhaps claim damage to collect twice what an item is worth in insurance.
How do other sellers communicate your unwillingness to do this and still keep your customers happy? While I might want to say "I'm sorry I'm not going to help you scam the Post Office", I'm not sure this is the most Customer Correct way of getting this across.
posted on July 25, 2001 10:37:42 PM
There is no way you can pad your USPS insurance. If the item doesn't arrive and you have insurance on it, you must prove the price paid for the item. Buyer has to send along with a form that is filled out a copy of the check or Money order or paypal transaction and the green insurance coupon. There is no way if you insure an item for $30.00 and the buyer pays only $15.00 the buyer will get only the price paid. I had this happen and I submited the EOA + insurance verification and buyer sent a copy of her check. It took 6 weeks but her money was refunded.
posted on July 25, 2001 11:05:23 PM
How does the buyer know what you insured it for anyway. If he says insure for $30 and they only pay $15 say okay then insure for $15. There is no way they will know what the insurance is on it unless it doesn't reach the destination or is broken. All that is stamped on the package is insurance. I guess it is a good way for a buyer to make money but guess what they will only get what they paid for. Good Luck
posted on July 25, 2001 11:10:53 PM
Just tell your customer that your company/business policy requires that postal insurance forms be filled out rounded up to the nearest sales dollar for postal insurance purposes. .....Don't say more.....they will figure it out.....bet they won't be upping their payment to support the claim of a higher priced sale.
ALWAYS Reaching for the STARS---Sometimes pondering---Could this be............AS GOOD AS IT GETS!
posted on July 25, 2001 11:11:40 PM
When I am asked to insure for more than bid amount, it's usually ignored. Lots of bidders are ignorant to the fact that you cannot insure for more than bid value. They seem to want "pain and suffering too!"
If it is a large transation and they request insurance over bid amount, I'll take the time to explain what I stated above "insurance is for bid amount only."
Concerning fraud: you would only be commiting it if you falsified the ACTUAL CLAIM FORM. NOT the green or blue insurance slip. When I used to ship via USPS my green slips always stated $50 value regardless. However, any claim was based upon the actual amount paid. Proved by a bill of sale [signed by me] and a copy of the auction page.
What really pisses me off is when I'm asked to lie on a customs form. "Please mark as gift." I write and explain that the practice is a Felony, and I'm not about to commit one to save some cheapsake three bucks!
posted on July 26, 2001 03:31:11 AM
What morgantown said - "Concerning fraud: you would only be commiting it if you falsified the ACTUAL CLAIM FORM. NOT the green or blue insurance slip."
This is exactly right - you can buy insurance for any amount you want to, but the only "fraud" would occur if you actually tried to file a claim for more than the item was worth. (And different post offices require different kinds of proof of that worth - some are far more lenient than others.)
Sometimes my postal clerks fill out a green insurance form for me - and they routinely just enter "$50.00" as the insurance amount. All that signifies is that that is the maximum amount of insurance I have purchased.
If someone asked me to buy much more insurance than they'd paid me for the item, I'd do it, but I'd explain to them in an email that if loss or damage occurred, it would be up to them to document the value, as I would only be able to state the value as what they'd paid me. And I'd keep a copy of the email.
posted on July 26, 2001 06:01:13 AM
I was wondering, wasn't there a court case invovling the insurance companies and and coverage payments. Basically, if a person paid the premium for $10,000 coverage, no matter how much the total loss was, whether $1,000 or $100,000, the payout was $10,000. Why is the Post Office exempt? You are made to buy a minimum of $50 coverage, but if the item is worth $5.00 the Post Office makes out like a bandit. If the item is worth $100, the Post Office makes out like a bandit and so does the insurance company. Insurance is a win-win situation for both of them.
posted on July 26, 2001 10:02:32 AM
How can the post office make out. You pay $1.10 for up to $50.00 insurance. I really don't think the USPS will make out. In fact with their carless handling of the package they will lose but they will only lose the actual value that the buyer paid. They require proof. When I insure a package I usually put $50.00 on the slip also because I mail more than one package at a time and then I don't have to remember what is in them. Makes is simplier on you. The only way the USPS makes out is when they deliver the package in pristine condition and then it is only $1.10.
