/ Money

First-class price for a second-class service?

Letter with first-class stamp

How much compensation would you expect to receive if a parcel you sent went missing or got damaged? £50? £30? Actually, it’s now just £20. Royal Mail has slashed the maximum level of compensation it pays out…

I don’t think I’m alone in believing that compensation for lost or damaged post should at least cover the price you paid to post the item, as well as a hefty chunk of the value of the item inside the parcel.

However, Royal Mail has dramatically reduced the maximum compensation it awards for lost or damaged 1st or 2nd class post, from £46 to £20.

Although Royal Mail automatically covers you for the cost of postage (with a minimum of six times 1st-class stamps), its compensation for the item itself is now subject to a new maximum of £20.

The price of peace of mind

It’s not all bad news – Royal Mail has increased the maximum compensation for parcels and letters that are sent via its signed-for service. This is now £50, up from the previous £46. Since the maximum amount you’ll pay for the signed-for service is £33.50, you’ll definitely be covered for the whole cost of postage and then some.

So, if you’re prepared to fork out extra for the signed-for service when posting items, you’ll receive a better level of cover.

Personally, I send everything via standard delivery, and until now my compensation entitlement was the same as it would be for sending via signed-for delivery.

Royal Mail said that the changes ensure that compensation is proportionate to the service used and postage paid. But how do you feel about Royal Mail’s compensation overhaul? Would you opt for signed-for delivery in order to get access to a higher level of compensation?

[UPDATE 28 JUNE 2013] – This post has been edited due to an inaccuracy – Royal Mail will cover the full cost of postage for lost or damaged post. It’s only the cost of extra compensation that has been cut.

W Layton says:
12 November 2020

150£ vouchers sent recorded delivery.pack opened and vouchers taken .Postman saw all this .Vouchers were traced and spend what can we do

Report it to the police and get a crime reference then contact the provider of the vouchers, whose responsibility it was to get them delivered to you securely, and request replacement vouchers since you have not received what they have sent.

Alternatively, contact your contents insurance company and see if you are covered for the loss. Even then, an excess might apply.