w~~_7.JPG "pjcdn2005"){kind=avatar}
"CanadaPost insures by full $100"
Actually, Canada Post provides indemnity UP to $100 - based on proof of value.
The premium paid is not for $100 but for the lost or damaged value UP to $100.
It is a bit like medical insurance providing you UP to $10,000 in medical bills while outside the country. If you have a medical emergency and the actual cost was $2,500, you can only claim $2,500 (with receipts), not the maximum (UP to) $10,000 coverage
From Canada Post General Terms and Conditions (paragraph 19.6)
http://www.canadapost.ca/tools/pg/terms/Advance_Parcel_Terms_with-e.pdf
"Payment of Indemnity
If Canada Post elects to pay the Customer an indemnity, Canada Post’s liability is limited to paying the Customer an amount equal to: a) the lesser of:
i the actual value (either the sender’s cost, retail cost, repair cost, depreciated value or replacement value deemed appropriate by Canada Post), or
ii the amount of liability coverage purchased at the time of shipment less any compensation received by the claimant from any other source, plus"
There is a huge difference between overinsurance and insurance fraud
Section 380(1) of the Criminal Code of Canada provides the general definition for fraud in Canada:
380. (1) Every one who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretence within the meaning of this Act, defrauds the public or any person, whether ascertained or not, of any property, money or valuable security or any service,
(a) is guilty of an indictable offence and liable to a term of imprisonment not exceeding fourteen years, where the subject-matter of the offence is a testamentary instrument or the value of the subject-matter of the offence exceeds five thousand dollars; or (b) is guilty (i) of an indictable offence and is liable to imprisonment for a term not exceeding two years, or (ii) of an offence punishable on summary conviction,
where the value of the subject-matter of the offence does not exceed five thousand dollars
In addition to the penalties outlined above, the court can also issue a prohibition order under s. 380.2 (preventing a person from "seeking, obtaining or continuing any employment, or becoming or being a volunteer in any capacity, that involves having authority over the real property, money or valuable security of another person"). It can also make a restitution order under s. 380.3.
The Canadian courts have held that the offence consists of two distinct elements:
A prohibited act of deceit, falsehood or other fraudulent means. In the absence of deceit or falsehood, the courts will look objectively for a "dishonest act"; and The deprivation must be caused by the prohibited act, and deprivation must relate to property, money, valuable security, or any service.
"I still don't believe over-insuring parcels is illegal practice"
That is correct. You can overinsure as much as you want and pay the appropriate premiuns.
"If CanadaPost requests proof, they simply lower the claim to the invoice value"
That is the problem.
When making a claim - and that happens well before Canada Post askd for a "proof" - you can only make the claim based on your actual loss, not based on the maximum indemmity available. To claim more than the actual loss - regardless of the premium paid - may be considered postal fraud.
Since it is a legal definition, I suggest you consult a lawyer specializing in commercial law.
