During our audit of controls over automatic indemnity claim payments, we found significant internal control weaknesses in the Postal Service’s claims system.

The Postal Service offers up to $5,000 of insurance coverage as protection against the loss or damage of customers’ packages. Some domestic premium products (for example, Priority Mail and Priority Mail Express) offer free insurance, generally at $100 or less. When an insured item is lost or damaged, the customer may request compensation by filing a claim. When the Postal Service approves a claim, it pays the lesser of the maximum insurance coverage amount or the value of the lost or damaged item.

From fiscal year (FY) 2014 to FY 2019, the Postal Service paid a total of about $194 million in connection to about 2.3 million domestic indemnity claims. During that period, the number and dollar value of domestic indemnity claim payments per year more than doubled.

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  • anon

    I'm very dissatisfied with the postal recovery centers prompt service. I had a propriety mail package that arrived at the recovery center because it was missing the full address. It was scanned in at the recovery center. And NOTHING EVER DONE WITH IT! I guess if your package isn't important as to what's in the package they don't care if it is returned. I even paid for an extra 6 months find my package so they know I'm waiting on them to return it. I guess they just either throw the less important package out or claim it their self? I'm very upset. I've contacted everyone higher up in the postal management but with no prevail, I never hear updates on this. And when I look for updates it says "NO IMFORMATION" I RELIZE THEY MAY GET ALOT IF PACKAGES BUT IF YOU FILE MISSING PACKAGE INFO IT SHOULD BE FOLLOWED THRU ON & FOUND. It was a sentimental item that can not be replaced. I feel like "someone" should look into this information. Heck why have tracking numbers if they are "NOT" TRACKABLE? I guess this is away for them to make more money for you buying more insurance on the package.

    Apr 20, 2020
  • anon

    USPS accepts EVERYONE'S parcel at window. The customer is asked 3 questions and their answer is accepted. MOST damaged parcels are packed incorrectly. The tare weight is insufficient for item packed is common. No extra bubble wrap is 2nd. I have witnessed UPS open my box and add packing paper and CHARGED me for it. They will NOT ACCEPT parcels which are not packed right. USPS doesnt check for proper packing. If they would check then there would be wayyyyy less $$$$$ paid out for claims and customers would actually receive their item intact.

    Mar 12, 2020