Due to the number of people that have questions regarding USPS
insurance, I thought I would attempt to provide the ACTUAL USPS
policies regarding Indemnity Claims, in order to help eBay users better
understand them.

The following posts will contain the USPS information from the Domestic
Mail Manual (DMM), which is the official USPS Rules & Regulations
regarding Domestic Insurance Claims. The Rules & Regulations are
supposed to be followed by mailers & USPS employees alike. It is the
burden of the mailer, not the USPS employee, to be aware of proper
procedures (this will be covered in the first "lesson").
These Rules Do Not Apply To International Mail.

For the record, I am NOT a USPS employee, and as such, I am
unable to answer any questions regarding why a specific claim was
denied. Any one asking a question regarding why their claim was
denied will be referred to Post #2.

In the following posts, the official USPS information will be copied
straight from the current DMM (DMM 56, thru 5/3/01) and will appear in
italics. Information not in italics is strictly my own interpretation
of the regulations.

Subjects to be covered are:

1. Mailers
   Responsibilities
2. Summary of S010 Indemnity Claims
3. Who
   May File a Claim
4. When To File A Claim
5. Where and How to
   File A Claim
6. Required Documentation Regarding A
   Claim
7. Missing or Damaged Contents
8. Total Loss of
   Package
9. Payable Claims
10. Payment
11. Non-Payable
    Claims & Depreciation
12. What to do if your claim is
    denied
13. Link to S010 Indemnity Claims on the USPS
    Website
14. User Questions

As you might be able to tell, this info will be quite lengthy & at
times, tedious & cumbersome to read and understand. This is why mailers
get so many different answers from the USPS regarding proper procedures.

I respectfully ask that you read through all of the information to see
if your question has already been addressed. If after reading this
info, you still have questions, then feel free to ask, and hopefully,
myself or another user will be able to assist you.

cfrith

Additional disclaimer: The only official USPS rules are those published
in the Domestic Mail Manual. The USPS is free to change these rules at
any time. Because this thread is a "fixed text" format, I cannot change
the text posted in this thread, if & when, the USPS changes the rules.
Therefore, a user should periodically review the information contained
in Section S010 Indemnity Claims on their own, or whenever the need
arises, in order to verify that this information is still correct. This
information is not officially from the USPS, and meant only as a means
of assisting eBay users in filing their USPS Insurance claims. The
current link to this section of the DMM will be provided at the end of
the tutorial for your convenience.

Section S010 Indemnity Claims of the USPS Domestic Mail Manual covers
USPS regulations regarding the payment of insurance claims. When in
doubt as to proper USPS procedures regarding Indemnity (Insurance)
Claims, this is the place to look.

From the Domestic Mail Manual:

S010 Indemnity Claims

Summary

S010 describes general filing instructions for indemnity claims for
insured, COD, registered, or Express Mail. It also explains payment
procedures, nonpayable claims, and how to appeal a decision.

1.0 Special Services With Indemnity

A customer may file an indemnity claim for insured, collect on
delivery (COD), registered with postal insurance, or Express Mail.
Inquiries on uninsured registered mail may be filed as detailed in
S911.
(End DMM Reference)

For the purposes of this tutorial, I will only address indemnity claims
regarding insured mail. If you need assistance regarding the filing of
an insurance claim on COD, Registered, or Express Mail, please use the
link provided later in this tutorial to access S010 Indemnity Claims
and read the information.

When can a claim be filed?

From the Domestic Mail Manual:

2.0 General Filing Instructions

2.2When to File

A customer must file a claim immediately when the
contents of an article are damaged or missing. For a
lost article, a customer must file a claim within the
time limits in the chart below.

Mail Type or Service , When to File (From Mailing Date)

		
Insured : No Sooner Than 30 days, No Later Than 1 year

Bulk Insured: No Sooner Than 30 days, No Later Than 180 days
	
COD :	 No Sooner Than 60 days, No Later Than 1 year
	
Express Mail: No Sooner Than 7 days, No Later Than 90 days
	
Express Mail COD: No Sooner Than 60 days, No Later Than 90 days
		
Registered : No Sooner Than 15 days, No Later Than 1 year
	
Registered COD: No Sooner Than 60 days, No Later Than 1 year

	
Exceptions: Claims for loss of insured and COD articles
(including insured articles sent to APO and FPO addresses) originating
at or addressed to post offices outside the contiguous 48 states may be
filed only:
a. After 45 days if article sent First-Class Mail, space available mail
(SAM),
or parcel airlift (PAL).
b. After 60 days if article sent COD.
c. After 75 days if article sent by surface.
(End DMM
Reference)

Many people inaccurately believe that a USPS insurance claim may only
be filed after 30 days. This is only true for a package that never
arrives. Claims for Damaged or Missing Contents must be filed
immediately, according to 2.2 above.
USPS employees are likely to inform you that you must wait 30 days when
attempting to file a claim for damage. Refer them to the DMM, section
S010 Indemnity Claims 2.2.

Evidence of Insurance has to do with proving USPS insurance was
actually purchased for the purposes of filing a claim.

From the Domestic Mail Manual:

S010 Indemnity Claims

2.5Evidence of Insurance

For a claim involving insured, COD, registered, or Express Mail
service, the customer must present any of the following evidence
showing that the particular service was purchased:

a. The original mailing receipt issued at the time of mailing
(reproduced copies are not acceptable).

b. The wrapper showing the names and addresses of the sender and the
addressee and the proper mail endorsement, tag, or label showing that
the article was sent insured, COD, registered with postal insurance, or
Express Mail.
If only the wrapper is submitted, indemnity can be limited to $100
for insured, $50 for COD, $100 for registered mail, and $500 for
Express Mail.
(End DMM Reference)

Two options are available here, either the original insurance
receipt may be submitted (Copies are not acceptable), may be
presented as "Evidence Of Insurance" or:

The packaging may be submitted with the names of sender/addressee, &
bearing either the "Insured" Stamp or Insurance Label. If only the
packaging is submitted, your claim can be limited to a maximum
payment of $100,
as stated under 2.5.B above. The DMM does say "Can be limited", not
"will be limited", but why take the chance? Hang on to your original
receipts, and you will never have to worry about this.

Rule #1, don't lose your original insurance receipts.
Rule
#2, Make sure all insured items are either stamped "Insured" or
have an "Insured" label applied.

First, lets address Missing Contents:

From the Domestic Mail Manual:

S010 Indemnity Claims

2.7 Missing Contents

If a claim is filed because some or all of the contents are missing,
the customer must present the container and packaging to the
USPS when filing the claim. Failure to do so results in the
denial of the claim.
(End DMM Reference)

Fairly self-explanatory. If a package is missing some or all of its
contents, the addressee must present the original package to the USPS.
Failure to do so results in the claim being denied. It would appear
from this information that the addressee must file the claim
for missing contents. However this is not clear. Since the sender may
initiate the claim for damaged packages (see next paragraph), it stands
to reason that the seller may also initiate the claim for "Missing
Contents", as well. This is something that would have to be discussed
with your
local Post Office.

Now lets address the issue of a damaged package (complete damage OR
partial damage):

From the Domestic Mail Manual:

S010 Indemnity Claims

2.8 Damage

If the addressee files the claim, the addressee must
present the article with the packaging and mailing container to
the USPS for inspection.

If the sender files the claim and the addressee has the damaged
article, the sender's post office sends the claim to the addressee. The
addressee then must present the article, packaging, and container to
the USPS for inspection.

(End DMM Reference)

This is contradictory to what many sellers (& buyers) believe. Many are
under the impression that the buyer must file the claim for a damaged
package. This is false. Either the buyer or the sender initiate the
claim in the case of a damage article.

WHEN USING USPS INSURANCE, UNDER NO CIRCUMSTANCES IS A PACKAGE WITH
MISSING OR DAMAGED CONTENTS TO BE RETURNED TO THE SELLER.When
filing a USPS claim for missing contents or damages, the addressee must
present the package (packaging & contents) to their post office for
inspection. Returning the package to the sender will result in
a USPS insurance claim being denied. Part of the decision process
for a payable claim is whether or not the item was properly packaged.
If the package is returned to the sender, the USPS can claim that the
damage or loss occured in transit back to the sender, and deny the
claim.

And finally, for a package that is completely lost.

S010 Indemnity Claims

2.9 Proof of Loss

To file a claim, the sender must provide proof of loss of
insured or registered mail. Proof of loss is not required for COD or
Express Mail claims. Any one of these documents is acceptable:

type=a>

1. A letter or statement from the addressee, dated at least 30 days
   (15 days for registered mail) after the date that the article was
   mailed, reporting that the addressee did not receive the article. The
   statement or a copy of it must be attached to the claim.
   
2. The proper part of the claim Form 1000 completed and signed by
   the addressee reporting that the article was not received.
   
3. A statement from the post office of address reporting that no
   delivery record is on file. The sender can obtain this statement by
   sending a written request to the post office of address with a check or
   money order for an amount equivalent to the delivery record fee in
   R900.23.0; this amount will be reimbursed if the claim is paid. The
   request must include the names and addresses of the sender and
   addressee, the insured or registered number, and the mailing date.
   

Only the sender may intitiate a claim for a lost package. Addressee or
sender must provide one of the items listed above for "Proof Of Loss".

From the Domestic Mail Manual:

S010 Indemnity Claims

2.14 Nonpayable Claims

Indemnity is not paid for collect on delivery (COD), insured, or
registered service or for Express Mail in these situations:

a. Evidence of insurance coverage not provided.

b. Loss, rifling, or damage occurred after delivery by the USPS.

c. Claim based solely on sentimental rather than actual value.

d. Requested replacement value exceeded actual value at the time and
place of mailing.

e. The contents of film (e.g., positives, negatives, slides,
transparencies, videotapes, laser disks, x-rays, magnetic resonance
imaging (MRI) prints, computerized axial tomography (CAT) scan prints),
the cost of creating or re-creating these items, or the photographer's
time and expense in taking the photographs.

f. Loss resulted from delay of the mail, except under 2.12a(2).

g. Consequential loss claimed rather than the actual value of the
article.

h. Perishable contents froze, melted, spoiled, or deteriorated.

i. Damage by abrasion, scarring, or scraping to articles not properly
wrapped for protection.

j. Death of baby poultry caused by shipment to points where delivery
could not be made within 72 hours from the time of hatching, unless it
is determined that transportation was in place to achieve the 72-hour
target.

k. Death of honeybees, crickets, and harmless live animals not the
fault of the USPS (mailability of these insects and animals is subject
to C022.

l. The sender or addressee failed to cooperate in the completion of
required claim forms.

m. Fragile nature of article prevented its safe carriage in the mail,
regardless of packaging.

n. Personal time required to replace documents.

o. Claim filed after the article transported outside the USPS.

p. Damage caused by shock, transportation environment, or x-ray,
without evidence of damage to the mailing container.

q. Mail article or part or all of its contents officially seized while
in the military postal system overseas.

r. Negotiable items (defined as instruments that can be converted to
cash without resort to forgery), currency, or bullion valued in total
at more than $15 per shipment sent by Express Mail, except under
2.12c.

s. Consequential loss of Express Mail claimed, except under
2.12a(3).

t. Nonmailable items, prohibited items, or restricted items not
prepared and mailed according to postal standards, or any item
packaged in such a manner that it could not have reached its
destination undamaged in the normal course of the mail.

u. Loss or damage caused by employees or agents of the sender or
addressee.

v. Radioactive injury, electrical or magnetic injury, or erasure of
electrical recordings.

w. War, insurrection, or civil disturbance, or seizure by any agency of
government.

x. Loss after items signed for by the addressee, the addressee's
agent, or delivery employee if authorized under the applicable
standards.

y. Items sent COD without the addressee's consent.

z. Adult birds in Express Mail with no physical damage to the
container.

aa. Cost incurred for estimates and appraisals.

ab. Lottery tickets, sweepstakes tickets, contest entries, and similar
items.
(End DMM Reference)

Special attention should be paid to 2.14 A, B, C, D, P, T, U , and X
above. Especially 2.14.P and 2.14.T. Under 2.14.P, if the item arrives
damaged and there is no visible evidence of damage
to the outer mailing packaging, the claim is considered to be
non-payable. Under 2.14.T, the claim for an improperly packaged item is
also non-payable.

Items above referring to 2.12 are referencing Payable Express Mail
claims. For the purposes of this tutorial, Express Mail claims are not
being addressed. If you have questions regards Express
Mail Claims, please refer to S010.2.12 of the Domestic Mail Manual,
using the link provided at the end of this tutorial.

Depreciation of Claims:

From the Domestic Mail Manual:

S010 Indemnity Claims

2.15 Depreciation

The USPS depreciates a used article either lost or damaged based on
the life expectancy of the article.
(End DMM Reference)

If the item in question is used, it's value may be depreciated by the
USPS for the purposes of paying a claim.

From the Domestic Mail Manual:

4.0 Adjudication

4.1 Initial

The St. Louis Accounting Service Center (ASC) adjudicates and pays
or disallows all domestic claims except the initial adjudication of
domestic unnumbered insured claims that are not bulk insured service
and those appealed under 4.3. Domestic unnumbered insured claims,
except for bulk insured service, are adjudicated and paid locally at
the post office accepting the claims.

4.2 Appeal

A customer may appeal a claim decision by filing a written appeal
within 3 months of the date of the original decision. Except for an
unnumbered insured article, the customer must send the appeal directly
to Claims Appeals (see G043for address).
For an unnumbered insured article, the customer must send the appeal to
the post office where the claim was filed. That post office forwards
the appeal to the manager of Claims Appeals at the St. Louis ASC.

4.3 Final USPS Decision

If the manager of Claims Appeals at the St. Louis ASC sustains the
denial of a claim, the customer may forward the appeal for final review
and decision to the Consumer Advocate, USPS Headquarters (G043), who
may waive standards in S010 in favor of the customer.

(End DMM Reference)

For the initial decision as to whether a claim is to be paid or not,
4.1 above says the local Postmaster may only decide for claims under
$50 (domestic unnumbered insured claims).
For all other claims, the decision regarding payment of claims
MUST go thru the St. Louis Accounting Service Center. The local
postal employees are supposed to file the claim, noting any
deficiencies in packaging, or improper payment of fees, on
the claim form. They might tell you that they do not believe the claim
will be paid, but they CANNOT refuse to file the claim. Failure
to file the claim will result in losing your right of appeal as
detailed in the subsequent paragraphs.

In 4.2 above, if your claim is denied or payment is not made to your
satisfaction, you may appeal the decision of the USPS. This appeal must
be filed, in writing, within 3 months of the initial denial. If the
claim was for an amount greater than $50, the appeal must be filed with
Claims Appeals (address to be provided at the end of this post).
If the claim is for less than $50, the appeal is filed with the local
post office, who is then supposed to forward the claim to the manager
of Claims Appeals at the St Louis Accounting Service Center.

Should this appeal be denied, you have the right to one further appeal
under 4.3 above. This appeal is filed directly with the Consumer
Advocate, USPS Headquarters (address to be provided) who may waive any
standards in the S010 Indemnity Claims in the customers favor.
It may actually take the filing of this appeal, in order for a customer
to get a claim paid. Be persistent and always provide as much
information as possible.

Address for Claims Appeals:

CLAIMS APPEALS

ACCOUNTING SERVICE CENTER

US POSTAL SERVICE

PO BOX 80141

ST LOUIS MO 63180-0141

Address for Consumer Advocate (Second Appeal):

CONSUMER ADVOCATE

US POSTAL SERVICE

475 L’ENFANT PLZ SW

WASHINGTON DC 20260-2200