Courier insurance
- Thread starter blr_p
- Start date
It matters because insurance basic principle is that person should not be in profit after receiving insurance. So if a person has used phone which he declares at 10k though in reality it can be bought in used condition for 6k easily & insured it then lost it would effectively be getting a profit of 4k on getting insurance money. That is why outside of new sealed products with proper invoice, no insurance company take/consider any used product with declared value unless they also establish their own value of the used product & obviously this won't be worth the hassle for such things as used iphone.
That's new, would be completely pointless then even in case of new products getting lost & receiving insurance.
Yep, quite pointless.
Attachments
I was skeptical of shiprocket from the beginning & this made sure I would never use it.
Emperor
Skilled
Right Side second point, 99% they will miss either tracking or pick-up scan as it help them to escape. If issue arise, they first prefer to shun you/your claim, if you have some higher level person in their Organization at your side then only there is some hope to get parcel/product back intact.
some time back one of our TE member had order laptop from ... for his office and his colleague get only mouse/cable (no laptop) but after some follow-up/weight proof, he able to established that his employee received just some parts only.
Shiprocket is a courier services aggregator so which courier company was used in above example.
PunkX 75
Adept
I believe it was Xpressbees, IIRC.
Imagine someone shipping a gpu that was bought for lakhs and now it's going in thousands in the used market. If one were to claim insurance for it based on the depreciation from invoice value then it'd be a disaster for the insurer.
I agree, having experienced it first hand with ship rocket It's not worth it. What I don't get is they're scanning it while they're taking it so why can't they just scan it while delivering and see that it's been swapped
Emperor
Skilled
either aggregator or courier service/company itself, anyone not interested if you face problem and that too like missing articles. No matter how tall/big claim they promise at time of booking & present themselves as Gentlemen.
There is some exception but you must have time & resource (influence too) to fight, as some local point office bearer are really ROUGH GUYS.
blr_p
Skilled
You're talking about people scamming the company. There is always fraud but it's a minority of total business conducted. If that total is large enough the scams are written off as cost of doing business. I'm speaking from a western perspective. Here they tend to be tighter and put people through more hassle. Doesn't mean the option should not be explored whether used or not. In any case the figures covered are small amounts. They won't cover anything more than 50k as one company indicated.
Then they will lose business if other companies offer such insurance. What are blue darts policies here. Anyone know?
Bingo
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You didn't get it. The "universal legal principle" of insurance is something like "ppl should not be better off than they were before after getting the insurance money". This is followed everywhere in the world when it comes to insurance. Nowhere in the world one can get insurance for a used product only on the basis of their own "declared value".
blr_p
Skilled
Fine, so how hard would it be for a courier company to outsource this problem to an insurance company with such a facility?
Have you heard of home insurance. Everything in the house is used isn't it.
They can & they probably do when the shipment in question is from a corporate customer with regular shipments & worth lots of money because then it makes sense for the extra hassle. For typical retail customer shipping used products with actual value (aka the price at which that used product can be purchased easily from online/offline) less than few lakhs maybe once-twice in months/years, it is not worth the extra hassle.
Emperor
Skilled
you may use other BRAND SERVICE, but you never know if they have tie-up with Shiprocket and forward your parcel with shiprocket.
blr_p
Skilled
They will do it for large amounts but not for small amounts. Looks like the business never heard of shampoo in sachets.
All I'm hearing are excuses and this means insurance has a ways to go before maturing in India. I'm sure there is a lot of profit to be made for a player with deep pockets.
How does that work if somebody booked a parcel with an actual courier company by visiting their authorized centre like bluedart, dtdc, delhivery etc?
Insurance business works on "majority subsidising minority" so for health insurance the 60 healthy customers paying policy premium pay for the 40 sick customers paying policy premium. Unless a courier company finds at least enough no. of assured insurance premium payers to cover for the "expected losses" of used products it won't happen.
PunkX 75
Adept
I don't think it does unless explicitly booked through Shitrocket. If you're booking with the courier company directly, it's them that handle it entirely.
Emperor
Skilled
Have no such experience with BIG NAMES but small courier service providers doing same since long, even before aggregators. Just like if you book parcel and if they found that their brand office in between route or at end point shutdown or have some temporary delivery boy/person/vehicle issue, than, they opt for such Routing via third party service.
blr_p
Skilled
A matter of time for a $5tr economy
