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Author Topic: Fed Ex Insurance Scam
magpie
Deck the Malls


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There was just an episode on People's Court about how a woman bought insurance on a watch she was shipping and paid for $2000 insurance, but the when the watch was lost Fed Ex only paid the shopkeeper $100, saying that regardless of the amount of insurance bought the payout will only be $100. In the case on People's Court the shopkeeper was held responsible for the full $2000 because the woman paid for $2000 of insurance, not $100 of insurance. Is this really Fed Ex policy to take whatever money people say they want to insure something for but only pay out $100 in all cases?

I found some links on the internet that say this could be the case, but I would really expect some sort of class action lawsuit if this was true.
http://www.consumeraffairs.com/delivery/fedex_ground_insurance.html
http://www.potters.org/subject58467.htm
http://www.isquare.com/newsletter_archives/jun04.cfm

Posts: 439 | From: Redondo Beach, CA | Registered: Sep 2005  |  IP: Logged | Report this post to a moderator
glisp42
I'm Dreaming Of A White iPod


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magpie, no it is not. The shopkeeper screwed up when he shipped the order out. All items sent out are automatically covered up to $100.00 but if you want more than that you have to fill in the "declared value" for however much you are insurering it for. The shopkeeper forgot to declare the value and probably passed the buck to Fed Ex when he is actually liable.

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What does "Bookachow", "YOMANK" and other lingo mean?

And we'll collect the moments one by one I guess that's how the future's done. -Feist

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TrekkerScout
Deck the Malls


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FedEx doesn't even offer insurance on packages. I never use FedEx because of this very reason. If you want insurance for items shipped via FedEx, you must go through a third party insurer.

The "declared value" field on the shipping forms is only used for international shipping to determine customs fees. There is absolutely no reason for filling in that part of the form for domestic shipping.

Posts: 306 | From: Tacoma, WA | Registered: Sep 2005  |  IP: Logged | Report this post to a moderator
glisp42
I'm Dreaming Of A White iPod


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TrekkerScout, I'm afraid you are mistaken. FedEx does indeed offer insurance and the declared value field is there for insurance and claims.

I've filed several claims with FedEx and I've been very pleased with them.

--------------------
What does "Bookachow", "YOMANK" and other lingo mean?

And we'll collect the moments one by one I guess that's how the future's done. -Feist

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TrekkerScout
Deck the Malls


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glisp42, you may want to reread FedEx's Terms and Conditions where it states in no uncertain terms:
quote:
FEDEX GROUND DOES NOT PROVIDE INSURANCE COVERAGE OF ANY KIND.
The T&C also limits FedEx's liability in the OP's case to $100 with the following clause:
quote:
D. Packages (including freight shipments) containing all or part of the following items are limited to a maximum declared value of $100:
[snip]
7. Jewelry, including, but not limited to, costume jewelry, watches and their parts, mount gems or stones (precious or semiprecious), industrial diamonds, and jewelry made of precious metal.

You should not confuse insurance with liability. FedEx limits their liability through their T&C. The monetary value of that liability cannot be increased with insurance because FedEx does not provide insurance coverage.
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CuffGirl
I Saw Three Shipments


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So I'm confused. I saw this episode, and the defendant said they pay for the extra insurance by adding in the value of the package. she even told the Judge she entered $2,000 as the value and the insurance charged was $7.00 and change. Why would they charge her more then? Something isn't right.

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"Whenever I hear a man say that women hate sex, I think 'No, they just hate having sex with you.'" - Waterlily

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CuffGirl
I Saw Three Shipments


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quote:
Originally posted by glisp42:
magpie, no it is not. The shopkeeper screwed up when he shipped the order out. All items sent out are automatically covered up to $100.00 but if you want more than that you have to fill in the "declared value" for however much you are insurering it for. The shopkeeper forgot to declare the value and probably passed the buck to Fed Ex when he is actually liable.

I know for a fact that this is true for UPS...I used to ship stuff all the time from work, and they do offer additional insurance over $100 if you pay for it. Not sure about FedEx however. It sounds strange that they would not offer any kind of coverage when their competition does. [Confused]

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"Whenever I hear a man say that women hate sex, I think 'No, they just hate having sex with you.'" - Waterlily

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ThistleSoftware
Little Sales Drummer Boy


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quote:
Originally posted by TrekkerScout:
glisp42, you may want to reread FedEx's Terms and Conditions where it states in no uncertain terms:
quote:
FEDEX GROUND DOES NOT PROVIDE INSURANCE COVERAGE OF ANY KIND.

Fedex Ground is a different service than regular Fedex.

On regular Fedex shipments, you can in fact insure your package. I don't know what the limits are but my coworker recently received $200 for a shipment that she had insured for that amount that was subsequently lost by Fedex. I know that's not exactly a cite but it does counter the claim made in the OP.

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Officially Heartless

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ThistleSoftware
Little Sales Drummer Boy


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If you click this link and then click the "declared value and limits of liability" link it has the terms for Fedex Express's liability. It turns out they do not offer actual insurance, but the declared value of the package is the amount they will reimburse you if you can prove damage or if you package is lost.

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Officially Heartless

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mags
Jingle Bell Hock


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