I'd like to discuss whether this service offered by Australia Post may constitute a scam.
They offer a service called 'Extra Cover' which is insurance in all but name. They even state in their documentation that this service is not insurance, however, the service is basically this:
- A payment made to Australia Post
- The service returned for this payment is that Australia Post will pay a much larger sum back to the consumer if there is damage to a package handled by Australia Post, or the package is lost.
This service should be defined as insurance as that's what it is in all but name. I have no idea if there's any legislation in Australian Law that covers how services are named, or the insurance industry generally.
There's also another large problem with this service; this being that there's a clause in Australia Post's terms of service that states that Australia Post isn't liable to pay out on any extra cover (insurance) claim if they deem any item to not have been packaged correctly.
This means that Australia Post simply has to state for every extra cover claim made that the item wasn't adequately packaged and they never have to make a payment for any claim. Meaning that their service may be a scam and that there's actually no service being returned for the payments made to Australia Post
They offer a service called 'Extra Cover' which is insurance in all but name. They even state in their documentation that this service is not insurance, however, the service is basically this:
- A payment made to Australia Post
- The service returned for this payment is that Australia Post will pay a much larger sum back to the consumer if there is damage to a package handled by Australia Post, or the package is lost.
This service should be defined as insurance as that's what it is in all but name. I have no idea if there's any legislation in Australian Law that covers how services are named, or the insurance industry generally.
There's also another large problem with this service; this being that there's a clause in Australia Post's terms of service that states that Australia Post isn't liable to pay out on any extra cover (insurance) claim if they deem any item to not have been packaged correctly.
This means that Australia Post simply has to state for every extra cover claim made that the item wasn't adequately packaged and they never have to make a payment for any claim. Meaning that their service may be a scam and that there's actually no service being returned for the payments made to Australia Post