FedEx
Claim on Insured $700 Bathroom Sink Denied as Hazardous Material

I used FedEx to ship a $700 bathroom sink to a buyer, and 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 sustain 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, during which I was contacting the buyer and FedEx, and every step of the way FedEx was all but eager to close the claim. Finally, after the claim was re-opened for the 6th time, they picked the item up, but then it sat at some terminal for another month. After I re-opened the claim numerous other times, they finally did an inspection, 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 said that they had disposed of the item because they deemed it a hazardous material under 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 reference the OSHA regulation she was referring to. She was unable to do this but still insists that it is a hazardous material. At this point the manager stands on her judgment, and there is no recourse for me other than looking into legal action against FedEx.

Long story short, FedEx was all too 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 upon further escalation they use any and all means to deny the claim. While researching this whole ordeal, I found some more shocking information in their 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. It seems like a scam of sorts that they will collect insurance for amounts well over $100 but limit their liability to a maximum of $100. From now on I will take my business elsewhere (not that it will matter to them), but I hope to have informed others about their business ethics and help avoid similar situations.

Company: FedEx
Country: USA

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