Royal Mail Retail Compensation to Receive Overhaul

After a public consultation and a close look at Royal Mail’s compensation scheme, Postcomm is proposing changes to the way in which compensation claims are dealt with. The idea is to simplify the process and make it fairer.

Postcomm was concerned that there were inconsistencies in the way in which claims for retail customers were processed and with guidance from Postwatch, a new scheme is being proposed.

Retail customers should, say Postcomm, face less difficulty for claims where post has been lost, damaged or delayed with changes to:

– the processes for making a claim;
– the evidence required to support a claim; and
– the compensation payments themselves.

Nigel Stapleton, Chairman of Postcomm said: “Royal Mail’s compensation schemes for their retail customers have developed over many years and have become difficult for customers to understand. Recognising this, Postcomm has worked closely with Royal Mail and Postwatch to try and find ways to cut through the complexity and make sure mail customers have access to a clear, fair and user-friendly compensation system.”

“Postcomm is committed to remove prescriptive regulation where possible and the development of competition for the business of the largest mailers means we are proposing to do so by withdrawing the regulated bulk mail compensation scheme from April 2009 in favour of solutions based on individual customer need.

“While the overall volume of lost, damaged and delayed post is very small in the context of the total amount of mail carried by Royal Mail, every item is valued by customers and they should be properly compensated when there are such problems.”

The key proposals for compensation for lost, damaged and delayed mail are:

* where the item was posted with Royal Mail, there will be compensation for first time claimants for loss, damage and delay where an item has no intrinsic value or where a claimant cannot provide proof of posting;
* loss and damage to items with an intrinsic value, with proof of posting and value, will entitle customers to a postage refund plus compensation for actual loss up to the market value of the item or the current statutory maximum of GBP 34, whichever is the lower;
* monetary compensation payments for delay and substantial delay will be removed, along with the substantial delay category for non-Special Delivery items; and
* users of the Articles for the Blind service will be able to claim compensation for loss, damage and delay.

These proposals are subject to a two-month consultation period, with response requested by no later than 18 February 2008. Postcomm will assess the responses received to the proposals in this document, and aims to publish its final decision by 30 April 2008.

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