UK Royal Mail’s regulated compensation scheme for delay starts January 1 04

Royal Mail’s regulated compensation scheme for items delayed in the post comes fully into force from January 1 04.

The company has already implemented most of the new arrangements (from October 6 2003) in line with regulator Postcomm’s determination.

Royal Mail is one of the few postal companies in the world to pay compensation for delay to mail.

From October 6 2003 the scheme has given customers 12 times the cost of First Class postage for First Class letters that arrive more than four working days after posting and for Second Class letters that arrive more than six working days after posting. The compensation is £3.36 worth of postage in a book of First Class stamps. Customers need to provide evidence of delay.

Business customers will get refunds on their postage bills if Royal Mail does not meet regulatory performance targets at the end of the financial year. They will receive 0.1 per cent refund (up to a maximum of five per cent) on their postage bills for each 0.1 per cent that Royal Mail is below targeted performance on relevant services, subject to a minimum failure of one per cent. The compensation will cover delay to business customers’ mail, as appropriate, for the whole of the financial year 03/04.

From January 1 04 the other elements of the mandatory scheme will be introduced.
These are
– that in exceptional circumstances and with additional evidence of delay customers can claim £5 for delays as above.
– for First and Second Class letters (and Standard parcels from April 2004) that arrive more than nine working days after their due delivery date, customers will be able to claim £10. Again this will only apply in exceptional circumstances and when customers provide additional evidence.
– Additional compensation for delay will also be available for Royal Mail’s Special Delivery 12:00 Next Day service, this is over and above the standard compensation for delay of fee refund if the item is not delivered by its guaranteed delivery time. Customers will be entitled to £5 compensation if their item is not delivered within 24 hours of the guaranteed delivery time (working days only) and £10 if it arrives 7 working days or more after the guaranteed day. This is in addition to the current compensation for the service (refund of postage costs). Royal Mail’s Special Delivery services already include additional loss and consequential loss compensation options for customers to buy.

For claims of lost mail compensation arrangements are unchanged and customers will receive up to £28, 100 times the cost of basic First Class postage on evidence of market value. Minimum compensation for stamped and metered mail and standard parcels was introduced from October 6 03 and is 12 times the price of a First Class stamp (£3.36). Customers requiring additional compensation cover have a range of Special Delivery service options with consequential loss compensation available up to £10,000.


Issued by Royal Mail
148 Old Street

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