Default Liability

Of Courier Companies

---

Why are courier companies not liable for loss or damage of any shipment?

It is a simple mathematical calculation.

If a shipper is shipping a parcel worth RM1,000, and the shipping fee is RM20, the profit margin for the courier company is probably just RM5 or lower. If the parcel is lost or damaged, and the courier company were to compensate the shipper RM1,000, the courier company will need to make another 200 deliveries just to breakeven. If the lost/damaged parcel is worth RM3,000 (e.g. Laptop), the courier company will need to do 600 deliveries to cover back. That is a huge loss for any courier company.

---

Whose liability when a parcel is lost or damaged?

The courier company is certainly responsible for the unfortunate event, hence they provide default liability coverage as listed below.