Postcomm sets compensation rates for delayed mail
7 October 2003
Following consultation, Postcomm today set out the details of how Royal Mail should compensate its customers if their letters and packets are delayed in the post.
Postcomm’s determination provides separate compensation schemes for businesses that use Royal Mail for bulk mailings, and for private customers. The bulk mail compensation scheme will come into effect for this financial year, linked to Royal Mail’s quality of service from April 2003. Compensation for private customers will operate from 1 January 2004.
Royal Mail today announced an interim compensation scheme which mirrors much of Postcomm’s determination. The Royal Mail scheme for domestic users takes effect from today.
Graham Corbett, chairman of Postcomm said:
“I hope this compensation scheme concentrates the minds of Royal Mail management and staff on the importance of meeting their delivery targets. Last week we proposed a financial penalty of £7.5 million on Royal Mail for its failure to achieve last year’s quality of service targets on two first-class business services. Under these new rules if Royal Mail again misses its bulk mail targets by a significant amount it will be liable to pay substantial compensation to its customers.”
The main components of the Postcomm’s compensation arrangements are:
Bulk mail - Business customers who send out bulk mailings will be compensated at the rate of 1% of their bills for each 1% that Royal Mail fails to meet national targets. The minimum payment will be at a shortfall of 1% and will increase by 0.1% increments up to a maximum of 5%.
Domestic users -A separate scheme is proposed for domestic users who will be able to make a claim for delays to first or second class mail, Special Delivery and standard parcels. For basic telephone claims, compensation will be set at 12 first-class stamps for mail that is delayed for three working days or more beyond the due delivery date*. Where there is a written claim providing clear evidence, including the envelope, compensation will be £5. This is doubled to £10 if the delay is excessive (10 working days or more after the due date of delivery) and clear evidence is provided.
Special Delivery - For Royal Mail’s Special Delivery service, where the target for signed-for delivery is the next day, in the event of a delay there will be a payment of £5 immediately after the due date and £10 where the delay is excessive. In addition to the payment of compensation, postage costs will be refunded.
Notes for editors
People making telephone claims will be asked to provide basic evidence by answering questions from Royal Mail. These include details of the sender and addressee, and information about the date and place of posting, the date of delivery, the type of stamp and cost of postage. Royal Mail has the right to refuse claims it considers are not valid. Customers refused compensation can appeal.
*The due delivery date for first class post is the following working day, and for second class post, three working days.
