The USPS does not actually pay insurance claims. The USPS only pays when it is legally required to do so.
The USPS does not have its own insurance program, and does not contract with an insurance company to provide coverage for its postal operations. Responsibility for postal insurance rests with the United States Congress. .
In 2006, the USPS was forced to pay out $3.3 billion in insurance claims. This is a significant increase from the previous year, when the USPS paid out only $1.9 billion in claims.
In 2005, the USPS paid out only $1.4 billion in claims. The increase in claims can likely be attributed to the increasing number of mail carrier injuries and fatalities. In 2006, there were an estimated 1,332 postal worker injuries and 31 fatalities.
Despite the increase in claims, the USPS insists that it is not responsible for providing insurance coverage for its employees. The USPS claims that this responsibility rests with the United States Congress.
The USPS has been lobbying Congress to pass a postal insurance bill, but to date, no such bill has been approved. The USPS claims that its financial losses are caused by acts of nature, such as floods and hurricanes, rather than by the actions of its employees.
Despite the USPS’s claims, it is clear that the number of claims is increasing. It is unclear whether this is due to an increase in the number of injuries and fatalities, or an increase in the severity of these injuries and fatalities. It is also unclear whether Congress will approve a postal insurance bill.
If it does not, the USPS may be forced to increase its insurance premiums, or to reduce the benefits that it offers its employees. In either case, the USPS would be forced to pay out more money in claims.
