Postcomm has launched a consultation on Royal Mail’s current compensation schemes for loss, damage and delay, which many customers are finding difficult to understand and use.
Royal Mail currently has four compensation schemes for loss and damage. Postcomm proposes that Royal Mail introduces a single loss and damage scheme governed by a clear and simple framework of principles.
Now that competition has started to develop, the consultation also seeks views on whether it remains appropriate for Postcomm to require Royal Mail to pay compensation to bulk mail customers for delivery delays and, if so, what type of scheme should be required for these customers in the future.
Postcomm chairman Nigel Stapleton said that it is important to cut through the complexity and ensure that Royal Mail’s customers have access to a clear, fair and user-friendly compensation system.
“While the overall volume of lost, damaged and delayed post is very small in the context of the total amount of mail carried by Royal Mail, every item is valued by customers,” said Stapleton. “This is an important issue that requires thorough consideration on whether the existing arrangements provide sufficient protection to the unfortunate minority of customers who have to seek compensation.”
He added that Postcomm’s consultation also covers Royal Mail’s own proposals for changes to its schemes, and invites the views of both retail and bulk mail users as to whether they are supportive of the regulator’s proposals to simplify the schemes and to reduce the degree of regulation over this aspect of Royal Mail’s business.
Despite Royal Mail’s regular bulletins announcing that its quality of service is at the highest level ever, in 2005-2006, Royal Mail paid out a total of £8.6 million in compensation for 256 million lost, damaged and delayed mail items:
£7.7 million paid out for 11.4 million lost mail items
£640,000 paid out for 1.3 million damaged mail items
£301,000 paid out for 243 million delayed mail items
