Royal Mail's Compensation Schemes for Delay and Loss and Damage

Postcomm, the independent regulator for postal services, is consulting on Royal Mail’s current compensation schemes for loss, damage and delay which many customers are finding difficult to understand and use.

Royal Mail’s currently has four compensation schemes for loss and damage. Postcomm is proposing that Royal Mail introduces a single loss and damage scheme governed by a clear and simple framework of principles.

In December 2007, Postcomm outlined proposed changes to Royal Mail’s compensation schemes to make them fairer and more suited to customer needs. The regulator has conducted a public consultation and worked closely with Royal Mail and Postwatch to address concerns about the complexity of Royal Mail’s current compensation schemes for retail customers and some inconsistency in how they are applied.

Following this review, Postcomm is proposing to remove bulk mail from a regulated compensation scheme for delay. Competition for bulk mail customers has developed to a point where the regulator is proposing that it is more appropriate to move towards a market driven option allowing the growth of schemes which reflect the differing needs of large mailers.

Royal Mail’s retail customers should face less difficulty in pursuing their claims because, for retail mail that has been lost, damaged or delayed, the proposals aim to simplify and align the processes for making a claim, the evidence required to support a claim, and the compensation payments themselves.