Federal Express Corporation Complaint - Fedex Insurance scam
I used Fedex to ship a $700 Bathroom Sink to a buyer in which I purchased the insurance. The item was well packaged and had ample packing material. The sink although considered fragile was very thick and would have had to sustained a substantial drop to break. Anyway I filed a claim and within a couple of days it was closed. I contacted Fedex and they stated that they were unable to pick the item up. This went on for over a month in which I was contacting the buyer and Fedex and every step of the way Fedex was all but eager to close the claim each time. Well finally after the claim was re-opened for the 6th time they finally picked the item up but then it sat at some terminal for another month. After re-opening the claim numerous other times they finally did an inspection and said that they denied the claim and closed the case. The reason according to the claims agent was that the item had insufficient packaging. I asked to have the item returned to me so that I could inspect the packaging myself since I knew it was well packaged when it left here.
The claims manager then went on to say that they disposed of the item because they deemed it as being hazardous material by OSHA regulations (due to broken porcelain). The manager then went on to quote the Fedex agreement in which I acknowledged that they have the right to dispose of materials considered hazardous (i.e. chemicals). I have extensive knowledge of OSHA regulations and I told the manager that there is no OSHA regulation listing porcelain as a hazardous material and requested that she referenced the OSHA regulation to which she was referring. She was unable to do this but still insists that it is hazardous materials.
At this point the manager stands on her judgment and there is no recourse for myself other than looking into legal action against Fedex. Long story short Fedex was all to eager to close the claim every step of the way which tells me that they are hoping a shipper will eventually drop the claim and then upon further escalation they use every and all means to deny the claim. While I was researching this whole ordeal I did find some more shocking info on there insurance agreement. Even though they collect the insurance they will not pay more than $100 for several items including antiques, glassware, art, film, photography, jewelry, etc., etc.
It seems that it would be a scam of sorts that they will collect insurance for amounts well over $100 but limits there liability to a max of $100. Well from now on I will take my business else ware (not that it will mater to them) but I hope to have informed others on there business ethics and help avoid similar situations.