Well I see no has replied to your "How to Proceed?" I am in the same boat with the UPS.  They ran one of my packages over with their forklift. Which was insured and headed to the Nederatherlands.  It made it to Florida.  The  UPS driver/Man was smart enough to log what happened to it but also said the 3rd party shipper refused it at 1 am and they returned it to me smashed.

  I filed the claim but they denied due to not following "the packaging rules of you should put peanuts etc around your item" which I had the item surrounded in syrofoam. I don't think that would stop a forklift.  I  operate heavy equiptment daily on construction sites.  Even a warehouse forklift can kill a person.

I asked them where in their policy is say that they should run my package over with their forkllift and not honor my insurance on my package.

Still denied.  So sounds like we are in the same boat. I was lucky I had another item and could ship out but I'm out the smashed one etc. and I'm not happy how UPS handles things. They don't follow their own rules and their is loop holes in the rules.  

UPS has gotten really bad about honoring claims.  I had a pole go thru a double boxed package and they denied it the first go around.  I had them deny another one exactly because of what the OP is going thru.  They make their own conclusions on how it was packed and if they see a bit of "paper" in the box, it's an immediate denial.  I always use a few sheets of tissue paper on my vintage items before I wrap in bubblewrap.  They saw that "paper" in the box and the claim was denied for improper packing... didn't matter that there was bubblewrap and peanuts also in the box!  I got that one denied twice and then I called their headquarters and complained..... finally they honored the claim but it took two months.   

I mentioned my problems with UPS to the mail store that I drop them off at.  They said everyone was complaining about UPS not honoring claims now and suggested I start using FedeX as they have never heard any complaints about them.  I think the problem is that UPS is not using a contractor for insurance, so it's not UPS you are dealing with for insurance, it is a contractor.

UPS denied my claim when a brand new intake manifold made out of solid billet aircraft grade aluminum was damaged by them so badly that it was in pieces when buyer received it. It was insured for $999.00.  The actual value of the item because it was a discontinued item is over $3,500.00.  It was new and shipped in manufacturer's original packaging and an additional box and bubble wrap over it. 

Crawford, the company that handles the claims for UPS, is also owned by UPS and if you do a little research, you'll find that they deny claims all of the time and give some excuse that is nothing more than a pretext to deny the claim.

I am an attorney and I am going to file suit against UPS.  Do not ship with UPS no matter what.  Use pony express beforeUPS.

There is a national law firm that is soliciting for claimants whose claims were denied by UPS to contact them.  I have nothing to do with this firm or any of the attorneys associated with their firm.  They can be easily found if you do a google search under something like "UPS damage claim denied".

I'm going through this same process currently. While I feel bad there's so many of us, I'm slightly solaced in knowing I'm not alone. I sent photos into UPS almost a month ago and they never even got back to me. I had to call them to follow up today to find out my claim had been "denied", and the only answer I received was "packaging related".

If it helps anyone, I shipped a metal and glass lampshade. The glass made it just fine; the metal crown atop the lamp crumbled. Visible damage to the box, and yes — 2"+ of bubble wrap packaging on all sides.

I'm now begun a dispute to the denial; I'm happy to report back, as I'm not going to let this one go.

Either way, looks I'll be looking to USPS from now on; this isn't how one treats customers.

Same thing here. Sent a phone back to verizon..was visible damage to box and the phone was cracked in half! filed a claim..denied. filed an appeal..denied. Shipping with US Postal service from now on.

UPS Claims Dispute

Package was picked up by UPS at my home 2/15/13 (Friday) in Delaware

The item was wrapped and taped with card board, forming an inner box around the item, then $20.00 worth of bubble wrap was wrapped around that, and then it was placed in a box.  The box was not only taped closed at seams but several runs of packaging tape was used to tape in all directions to keep package secure.

If the packaging wasn’t adequate the driver should have said so.

Item is delivered 2/22/13 (Friday) in California

Packaged received at destination after delays by UPS stating address was wrong, which it was not.  Receiver calls the evening of delivery and states that the item is broken.  I request he take pictures and send, which he does immediately. 

The following day the claim is filed with UPS 2/23/13 (Saturday).  I am told by UPS representative that UPS will either, (1) Inspect the damage at receivers home, or (2) Pick up package and take it to UPS station for inspection, and then I would be contacted.

Feb 23 I receive an unknown $12.00 charge from UPS in email

March 2nd I receive an unknown $4.62 charge from UPS in email

After numerous (6-8) calls to UPS I am finally told the item is on its way back to me.  I inquire about the claim/inspection and am told it has not been inspected. 

March 9th I receive a $91.25 charge from UPS in email (return shipping from California to Delaware).

Additional calls are placed and confusion still continues on the part of UPS as to what is going on with this, like the call I received from the Delaware UPS station asking if this package was suppose too be coming to me or going to California? 

And still no answer regarding the claim. 

Finally on 3/15/13 (Friday) I receive a voice mail from UPS stating that the claim is denied because of improper packaging. 

Through the tracking number I see the package is scheduled for delivery on 3/18/13 (Monday).  It does not arrive until 3/20/13 (Wednesday).

The delivering driver is the same driver that picked up on 2/15/13.  The box doesn’t resemble a box, but looks more like a ball of cardboard and tape.  Looking at my expression the driver was curious and asked something like “what is going on with this”?  I told him the long story as he shook his head throughout.  I also told him that the claim was denied which he said was “normal”.  I explained the damage, a metal cover that was broken and he stated that in order for that to have happened the box must have been dropped.  I asked if he remembered picking up the package on 2/15/13 and he stated that he did, and that it was a late pickup (5pm) and that UPS had sent two trucks to pick up.  Yes, he remembered right, because as he was loading the box in his truck that night another UPS truck pulled up.  I asked what he thought of the packaging when he picked it up and he stated that “it seemed fine”. 

Upon my inspection, some of my original packaging materials are not present.

So in total about 5 weeks for UPS to handle this from start to finish. 

As for the damaged item, a replacement cover is probably about $100.  If UPS had inspected in California like they said they were going to do and contacted me I could have given the buyer the $100 for a new cover and story over.

In addition to all this, since the item was an eBay transaction, and with all of the delay, which I was faulted for, the buyer filed a formal complaint against me with both eBay and PayPal.  PayPal decided in the buyers favor, refunded him and back charged my account the selling price and shipping fees, a total of $1053.00. 

And of course my reputation as a seller on eBay has been tarnished.

The only thing I can think of as a consumer and low volume shipper is sending stuff using UPS but paying by credit card and dispute it through the credit card bank. They would be less likely to buy the UPS BS but I don't know if UPS could then ban you from using their service if your credit card company agrees with you and reverses the charges. At least if UPS violates their own policies or simple common sense applies to your case it should be a slam dunk case with your CC bank.

EXACT SAME ISSUE I AM HAVING. I had my packages insured and when they arrived both boxes were trashed and the motor parts were a total loss. Now I am in fear of losing my credibility as a good seller with Ebay due to UPS. Both claims have been denied, twice, and I do not have the funds to send back to the seller (yes that is my own problem) but UPS needs to be dealt with...

                               Chris