Canada Post INSURANCE- BAIT AND SWITCH?

[lina-mallows]

Regarding Canada Post Insurance:
''Note: Our policy is to pay the lesser of the actual value (sender's initial cost for the item), the declared value or the insured value. For items sold on the internet, the sale price does not constitute adequate proof of value since it does not indicate the sender's initial cost for the item.''

So- when selling a collectible item- SOLD ON eBAY- it doesn't matter to Canada Post what the item sold for- ONLY WHAT YOU PAID FOR IT!
And then- they have the audacity to ask you to prove this by way of a "CASH REGISTER RECEIPT".

For those that sell collectible items- the item's cost is likely, and hopefully, only a small fraction of the item's sale price.

So, if CANADA POST won't provide insurance beyond the 'actual cost' ,a nd not the item's replacement value- WHY IS THIS NOT STATED UP FRONT????

According to Canada Post's SERVICE GUIDE:
''8.2 Coverage for Loss or Damage

Coverage up to $100CDN is included for Small Packet. Canada Post’s liability is limited to the actual value of the item if less than $100CDN.

Canada Post shall have no liability for loss, damage or rifling of items containing bank notes, stocks, bonds or other securities negotiable by the bearer, lottery tickets, travellers’ cheques or non-mailable matter, as well as any article prohibited by law in Canada or in the destination country. Also, no coverage is available on food items to the U.S.A. See General Terms and Conditions at www.canadapost.ca/generalterms for more information.''

It does say ''ACTUAL VALUE''.

How many seller's out there believe this to be the COST THAT THE ITEM SOLD FOR- and not what the ORIGINAL COST WAS?

So, in the field of collectible items- I happen to save a CASINO CHIP (face value $5) from a trip to Vegas thirty+ years ago. I place the CHIP on eBay, and it sells for $500, being one of only a few that have survived. I insure it for the full US$500 I received. The packet gets lost. Canada Post will ONLY pay the US$5 initial cost of the chip! WHAT IS WRONG WITH SCENARIO ???

Am I the only one that has a problem with this lack of ability to insure an item for what it sold for, or the cost to replace that item?

[coxengines]

"Limited to actual value" means c.o.g. It's akin to "actual cash" value with home insurance, as opposed to "replacement value".

It's typical insurance jargon and is meant to mitigate CP's payouts.

Fair? Not really.

However, in real life scenarios, they seem to rarely ask for for proof of c.o.g.. It only happened to us once. We ignored the request and re-filed. They paid 🙂

Were they ever to insist on receipts, that would pose absolutely no problem ]:) What is the old saying? "Never try to con a con"? Without implying that we are such of course.

We file a couple of claims a month or so and have found CP to be quite accommodating.

Cheers
Bernie

[lina-mallows]

From an "actual value", to a "replacement value", there is a world of difference.
Then again, "actual value" may well take into account depreciation.
In the collectible's market- APPRECIATION is the issue, not depreciation.

In the case of a collectible item- the replacement value- if eBay sales throughout the holiday period would indicate that the US$188.88 item we sold was UNDER MARKET- as two sold for considerably more- at US$200+ PLUS shipping. We deliberately priced ours for less to try to capture an underbidder.

The MUG was sent in an 8"cubed box, carefully packed (double boxed), and correctly addressed, with a CN22- and other necessary indicia- sent AIRMAIL SMALL PACKET, at a cost of just over C$30.oo.

As a collectible item, I'd be happy to buy a replacement and send it to the customer. They just can't be found for around the $10 original sticker price!

[craftycatsattic]

This happened to me, 2 years ago. They only replaced my actual cost and made me go through a song and dance. I lost my time and my listing/final value fees. It took almost 6 months to get the measley settlement and the Canada Post rep was very unpleasant through it all.

[recped]

WHAT IS WRONG WITH SCENARIO ???

You are using Canada Post insurance?

There is no requirement to do so, if you feel the coverage is insufficient then utilize an alternate insurer.

[fenian]

CP lost a registered packet going to GB - insurance coverage indicated "up to $60"....I was told this was "insurance" by the local postmaster. When I claimed (actual loss was over $200), I got a cheque back for $41....with a form letter saying what I paid for was "an indemnity, not insurance" and this was all that I was entitled to "under international law". Took me 2 months going through the Canada Post ombudsman and my MP to get $60 plus a whacking $3 toward my postage cost (my actual postage/registration cost was over $16). Paying for extra insurance through CP is pouring it down a hole, as is paying $1.50 extra for signature return cards....they never come back. I now use Shipsurance (formerly DSI) and CP can go perform an indignity upon themselves.

[lina-mallows]

We did not insure beyond the C$100 INCLUDED in the cost of the SMALL PACKET shipping.
So, this is only asking for C$100 AMOUNT Canada Post INCLUDED, and nothing beyond that.

I am happy if we recover the C$100 plus the shipping cost.

[lina-mallows]

recped- The INSURANCE was INCLUDED in the SMALL PACKET rate. So yes, we were indirectly paying for it, but it was not an option, or something we deliberately sought out and paid for.

[lina-mallows]

craftycatsattic- for those that deal in collectible items- How does one determine the cost of an heirloom item acquired 50+ years ago?

I offer this seriously for consideration:
Rocks, like GEODES and fossils may be found. And in fact, most are. They are certainly sold, and collected.
How do you determine, or prove the cost of these items you 'found'?

[ampurtle]

So if it's lost, it is not sold and paid for, you did not get any money for it, so it is basicly worth zero until proven otherwise. The actual value of the item is $5.oo, the other 495.oo is your windfall profit. You added no value to the item, so all you have invested is $5.oo.

To apply insurance any other way results in one shipping Toonies to your friends for $200.oo and collecting the insurance because none arrived 😜

If it's damaged in transit, that's a whole other kettle of fish.

Signature cards haven't been returned to the shipper in a long time, the consignee signs and the mailmans daily log gets scanned and stored electronically. If you want a physical copy, you can order it, but that's pointless because any service that offers signature confirmsation is taceable and has the info on the CP tracking web site.

Personally, I've never had a problem with this, on the few occassions I did, a claim was submitted, 2 were paid and 2 were cancelled because the item arrived. I guess they trust me more because I don't rip them off and keep refunds I'm not entitled too.

regards amp
regards amp

[lina-mallows]

ampurtle- I am not certain responding to this is the best thing to do.
However, I find your answer insulting.

An item's REPLACEMENT value is the issue here not the initial cost.
Just because one paid a given price for an item does not mean that that items forever is worth that EXACT amount. The price paid on a receipt is only one factor in a myriad of additional costs.

To say that NO value was added, and that any profit is a "WINDFALL", is what I take offence to.

The time invested in traveling to a location (almost 600 miles away) finding item (only sold there), the cost of storing that item, and the items that are forgone while tying up that capital represent very real costs.

While I may consider that your argument has some merit, if the item were a readily available widget, and easily replace at the a cost similar to the original price, I could accept some of your argument about adding NO value.

However, when dealing with items of extremely limited availability, that are rarely seen, and not readily replaceable, the notion that it is worth what 'was paid' for the item flies in the face of any seller who deals with collectible items.

[futuretech_liquidations]

Cost Of Goods versus Replacement Value has long been an ongoing dispute between CanadaPOST and Shipper's.

We buy merchandise by the truckload at times and other times a few pallets at a time so our COG's vary all the time.

When CP loses a packages, we know immediately that we will not get compensated by CP for what it COST us to acquire that item - we know that they will only payout the ebay sale value + shipping.

Therefore, when listing an item on eBaY we try to build in the COG for that item into the LISTING PRICE, if and when possible to do so thereby minizing our potential lose(s).

Fortunately for us, CP has not lost too many items therefore for us it has not been a real issue.

Regards,

TIM @ FTL

[recped]

The one time I ran onto this with Canada Post I simply told them.....You don't want to pay my actual cost price, it's likely at least 5 times what I'm actually claiming"....that shut them up.