A share certificate is to be posted. Bearing in mind the consequence of its failure to be delivered is an indemnity charge of maybe 2% of the value of the shares.
Royal Mail Special delivery charges £9.50 for Special Delivery, with compensation up to £2,500.
Alternatively, a £3.90 surcharge gives consequential loss insurance for up to £2,500.
Does insurance against the loss of the share certificate requiring straight-forward insurance; or consequential loss insurance?
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I would say the indemnity charge is a consequential loss. The certificate has no intrinsic value, the act of losing it has a penalty.
Last edited by: Zero on Thu 7 Jun 18 at 17:03
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>> I would say the indemnity charge is a consequential loss. The certificate has no intrinsic
>> value, the act of losing it has a penalty.
And if in the time it took to get a new certificate/indemnity the share price halved, would that be a consequential loss?
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>> And if in the time it took to get a new certificate/indemnity the share price
>> halved, would that be a consequential loss?
No because you might not have sold them while they were going down and they might later go up again.
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Best to ask whoever will potentially pay the claim.
"My Mate on the internet said......" probably won't stand up should it come to it.
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>> Best to ask whoever will potentially pay the claim.
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>> "My Mate on the internet said......" probably won't stand up should it come to it.
No, I know. But you tell me who underwrites the Post Office's insurance and then I can ask them.
Here are the terms and conditions:
www.royalmail.com/sites/default/files/SpecialDeliveryGuaranteedby9am_TermsConditions_April2013.pdf and it then refers you to a further document that is not - seemingly - available on the internet.
My money's on Zero's interpretation. TBH I wouldn't normally insure a £2000 parcel, so - say - 2% indemnity exposure on £100k of share certificates probably isn't worth insuring either.
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Consequential loss, or not? - Zero
