Lawsuit accuses UPS of insurance fraud

Author Subject: Lawsuit accuses UPS of insurance fraud
Advocate Posted At 08:21:54 01/24/2000
Published on 11/20/99
Business Briefs
Lawsuit accuses UPS of insurance fraud

DAYTON, Ohio -- Customers who bought inurance over the past 16 years for packages shipped by United Parcel Service have filed a lawsuit accusing the world's largest package delivery company of insurance fraud.

United Parcel Service has not seen the lawsuit but feels it has acted properly and will fight the allegations, company spokesman Norman Black said Friday.

The lawsuit claims that UPS fraudulently collected fees to pay insurance for packages with values of more than $100 when the company was self-insured.

The Atlanta-based shipper recently sold stock to the public, raising nearly $5.5 billion in the biggest initial public offering to date.

In afternoon trading on the New York Stock Exchange, UPS shares were down $1.31 at $65 a share.

The lawsuit, filed Thursday in Montgomery County Common Pleas Court, seeks $14 billion in compensatory damages.

However, if the judge approves it as a class-action lawsuit, that amount would be tripled to $42 billion, Dayton attorney James Swaim said Thursday.

Tom Re: Lawsuit accuses UPS of insurance fraud (Currently 0 replies)
Posted At 15:43:05 01/24/2000

This is not a good time to be employed as an Insurance company Executive.
Did anyone notice that in the February Issue of Consumer reports
the Insurance companies declined to comment or couldn't be reached.
Wouldn't you say that these people are hiding behind the laws that govern
Workmans compensation, while the same laws are forced down our throats.

Marc Re: Lawsuit accuses UPS of insurance fraud (Currently 0 replies)
Posted At 16:31:53 11/02/2000

I am outraged by the practices of UPS regarding their insurance policies. There are absolutely no published guidelines regarding claims and the claims office does not accept incoming calls. I've been waiting and waiting for a claims representative to contact me regarding a claim, and have yet to speak to anyone. I feel as if I am being screwed. What a beautiful scam they are running...

Bruce Marshall Re: Lawsuit accuses UPS of insurance fraud (Currently 0 replies)
Posted At 19:44:36 01/04/2001

I agree one hundred percent. I cannot get a claim rep to contact me for anything.......they instantly denied my original claim because the box was not labeled correctly (fragile)eventhough the box was so damaged that nothing (even unfragile items could have survived the trip. Why pay extra premiums for insurance if there is very little chance of every successfully making a claim........I am in the wrong line of work.

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