You might think you would be getting some protection from loss or damage by paying the "Declared value" premium when shipping FedEx.
Forget it !
1) claims are immediately denied by company policy and
2) the only way to get anything is to sue them - both statements from FedEx employees in the trial described herehere.
I had thought the "insurance" charge in a "Mail Center" on a recent high $-value shipment I made using FedEx was a little high but they explained they had used a separate insurance carrier to protect my shipment. They had their own garbled patter about "FedEx never pays more than $100 per claim no matter what Declared value premium you pay for". So that's why I looked into it and found this case and a bunch of other hits about similar denials. The coverage I got was more expensive but was probably real. Let's hope I don't have to try and find out.
I wasn't aware of this situation so I thought I'd pass it along
Don't bother with the Declared Value charge.
Not sure of the terms and conditions of UPS or USPS...
From FedEx terms and conditions The declared value of any package represents our maximum liability in connection with a shipment of that package, including, but not limited to, any loss, damage, delay, misdelivery, nondelivery, misinformation, any failure to provide information, or misdelivery of information relating to the shipment. It is the shipper's responsibility to prove actual damages. Exposure to and risk of any loss in excess of the declared value is assumed by the shipper. You may transfer this risk to an insurance carrier of your choice through the purchase of an insurance policy. Contact an insurance agent or broker if you desire insurance coverage. WE DO NOT PROVIDE INSURANCE COVERAGE OF ANY KIND.
With respect to U.S. express package services, unless a higher value is declared and paid for, our liability for each package is limited to US$100. For each package exceeding US$100 in declared value, an additional amount will be charged. See Rates in the FedEx Service Guide for details.
With respect to FedEx Express Freight services, unless a higher value is declared and paid for, our liability for each piece (single handling unit) is limited to US$100 or US$1 per pound, whichever is greater. When the declared value exceeds the greater of US$100 or US$1 per pound per shipment, an additional amount will be charged for each US$100 (or fraction thereof) of additional declared value. See Rates in the FedEx Service Guide for details....Show more →
Edited by Fred Miranda on Nov 24, 2010 at 09:05 PM
Think of declared value as a way to raise the cap on how much you can sue them for if they negligently break or lose your stuff while in transit. Otherwise the shipping contract says you agreed in advance that your item was only worth $100.
Essentially you are paying them for their enhanced exposure to liability by transporting an expensive item for you. You are absolutely right that it's not "insurance".
Pack it so they can't break it, no matter how hard they try. Put declared value on it in case they lose it (essentially de facto negligence), and put signature required on it so there's no question of whether it was delivered.
wow. shocking. I have filed one claim with ups. it was on some framed posters for 500 which they broke and destroyed. I did not even have receipts, since they were older. they were very nice. asked me to provide proof of price of equivalent stuff, which I did, and they paid.
UPS has always been very good - as with any business they will do what they can to limit payout and make you provide proof to backup the value you listed for the loss.
I've had to file 2 damage claims with UPS over the past 16 years in business and both times I was taken care of with minimal irritation - much easier than flying these days and less invasive...
UPS lost a shipment of mine, transporting 1200.00 worth of gear to a job. They asked for receipts and had the whole thing wrapped up within 30 days. After that I tend toward using their service despite the mishandling.
Sheldon N wrote:
Think of declared value as a way to raise the cap on how much you can sue them for if they negligently break or lose your stuff while in transit. Otherwise the shipping contract says you agreed in advance that your item was only worth $100.
Essentially you are paying them for their enhanced exposure to liability by transporting an expensive item for you. You are absolutely right that it's not "insurance".
Pack it so they can't break it, no matter how hard they try. Put declared value on it in case they lose it (essentially de facto negligence), and put signature required on it so there's no question of whether it was delivered. ...Show more →
If you declare a value above $500 I think they automatically add that requirement. It may be worth it to cover cases where they simply lose the item. Proving damages sounds like it might cost more than the item, based on that case and others!
nystrpr wrote:
Has anyone ever successfully been paid a claim by FedEx for a damaged item or something that was lost ?
Yes.
When I shipped prints to my client in NJ last year the package arrived trashed. (PS it was packed for shipment by the local FedEx office).
I filed a claim for the amount $470 I had charged the client, and backed it up with the invoice and copy of the client's cancelled check.
About 3 weeks later, I got a check for $335, and a statement that they had paid $235 for the prints and reimbursed the $100 shipping and insurance fee.
Thanks Chas - not all is as gloomy as it sounds! As with many things on the net, one hears more complaints posted than praise.
I wonder whether you would have been as well taken care of if you had packed the items
As for the "who packed it" question, they never asked.
The package was inspected for damage when it was picked up by FedEx for return to me after being refused by the client. The local office never asked to see the package or pictures. I declared the value as $500, but paid no extra "insurance" fee.
Jumping to occlusions based on one dissatisfied customer's posting is a good way to find unnecessary trouble. So is trying to "deduce" corporate policy from single instances of failure or misbehavior.
I've shipped prints via FedEx and UPS for years without an issue. Just because one person had one problem does not constitute company policy or a statistical trend.
nystrpr wrote:
Has anyone ever successfully been paid a claim by FedEx for a damaged item or something that was lost ?
Yes I have they broke a 70-200 2.8 IS and I ended up with a check for $1500+ I was very happy with the settlement. Not only that they let me keep the lens but I hate Fedex just the same
My situation was I had a new lens packaged well so I did well. With Fedex you must have the item well packaged I believe the requirement is 3 inches of padding on all sides. My lens met all these and the person I shipped it to had it well documented with pictures and even the drivers picture . It clearly showed the package had been run over
But just today I wasted my day off waiting for a lens shipped only 300 miles away and the good or should I say the stupid people at Fedex put it on the wrong truck. This really pisses me off mainly for losing a day off. Bu they have done stuff like this before so I hate them
Reason for the is what else can one do? When you complain they say I understand I said to them no you do not understand and after talking to several people this is their standard answer
I try not to use Fed Ex, but unfortunately some of my suppliers do. I've had overnight packages disappear, supposedly signed by the recipient that they never saw. My wife had an overnight package on its way to the bank disappear for months, then mysteriously turn up. And then there are the packages that required my signature that were simply left by the door.
With UPS, I had a double boxed large ceramic piece literally involved in a train wreck while on its way back from an art show. With photos of the piece and an appraisal of it's value from an art dealer friend, I was paid 1/2.
Bernie wrote:
I try not to use Fed Ex, but unfortunately some of my suppliers do. I've had overnight packages disappear, supposedly signed by the recipient that they never saw. My wife had an overnight package on its way to the bank disappear for months, then mysteriously turn up. And then there are the packages that required my signature that were simply left by the door.
With UPS, I had a double boxed large ceramic piece literally involved in a train wreck while on its way back from an art show. With photos of the piece and an appraisal of it's value from an art dealer friend, I was paid 1/2.
I've collected a number of times. Most recently for a Mac Pro desktop computer which they damaged the outside case in transit. They paid me the$2500 I declared and paid for at the time of shipment. I gave them a receipt and I got a check. They even let me keep the old computer which I salvaged the parts from and used them to build a new computer.
and less invasive...
. It clearly showed the package had been run over