Who should get insurance money from UPS

[ben h]

I was the buyer of an item on Ebay. When it arrived to me it was broken. I reported
it to UPS and they took care of it. Now the seller has recieved payment from
UPS for the item.

I paid $100 for this item, far below its book value of $800. I paid $10 for
the shipping and insurance. The seller has admitted to me that they insured
it for a lot more than I paid for it,probably closer to it's book value. But
they will not tell me how much, even though they did it with my money.

The seller is now only going to refund me $100, and keep the rest for
themselves. Even though I was the one that paid for the insurance.
If they used my money to insure the item for more than I paid, I should get
this money to replace the item. If they are not willing to give me the
money, then I think they stole form me.

In their letter to me it said "I took a chance and insured it for more than
you paid." In my mind I am the one that took the chance without even knowing
it, because I paid for the insurance.

What do you think should be done here.

 

[Tracey]

What states are you and the seller in? The general rule on eBay seems to be that risk of loss passes when the item is shipped. If that was the case, the seller was acting as your agent when he insured the item, and is duty-bound to give you ALL the proceeds. Allowing him to keep the extra money constitutes unjust enrichment. This is especially true when you paid for the insurance in the first place!!

OTOH, you did not specify the amount of insurance to be obtained. You merely paid for "insurance". If seller paid the extra premium for extra insurance he might be able to keep the money.

Write a threatening letter (certified mail) and post negative feedback. It will probably cost way too much to sue seller in his home state.


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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.