What Is Non Delivery Insurance (NDI)?

Non Delivery Insurance (NDI) is a new insurance service applies to Joom Logistics Registered Mail (RM) parcels. 

In case a registered mail order was shipped by Joom Logistics, and refunded by Joom due to the logistic issues, the cost of the product refunded to the customer will be fully or partially compensated to merchant by Joom. In case of such orders are in confirmed delivery status, but refunded by Joom due to logistics issues, Joom will compensate the merchant as well. 

Logistics issues include Damaged and Non-delivery refund reasons.

⚠️ Please note:

When can you get the NDI? 

The NDI compensation is not applicable in case the parcel was returned back to the merchant;
1. Not delivered (according to the tracking information, the parcel was not delivered to the customer);

2. Damaged (the parcel got damaged during shipping);

3. Missing proof of delivery (according to the tracking information, the parcel was delivered, but the customer says that he didn't get it and there is no proof of delivery);

4. Delivered to the wrong address (the parcel was delivered to the wrong address or the wrong person);

5. Turned back by post office (the client forgot about the parcel in the post office and didn't receive it or refused to receive it, so the parcel was sent back to the merchant);

How Is the Non-Delivery Compensation Amount Calculated?

Non-Delivery Compensation Amount is the amount that will be compensated in case of a refund due to the logistic issue. Joom Logistics compensates the Merchant Revenue amount to the merchant, within the compensating maximum.

⚠️Please note: If a NDI covered order has been refunded partially, the NDI service will only compensate the corresponding part. For example: 

• If order A is 100% refunded, the NDI Non-Delivery Compensation Amount is $50. Thus, if this order is 50% refunded, the NDI Non-Delivery Compensation Amount is: $50 * 50% = $25.

What Is the Compensating Maximum of NDI?

There is a maximum amount that can be compensated per order, the maximum is $50 for most products, and $120 for products from the following categories:

1. Smartphones (category id: 1473502945380600110-142-2-118-393127717)
2. Laptops （category id: 1473502942189598273-236-2-118-2754798996)
3. Tablet computers (category id: 1473502942438525573-43-2-118-2592026259)

If the Declared Value and Merchant Revenue are both higher than the maximum, only the maximum amount will be compensated.

How Is the Non-Delivery Compensation Amount Shown in the Invoices?

The Non-Delivery Compensation Amount is deducted from the refund amount for the order and is not reflected separately in the invoice. If an order is covered by NDI, the compensation amount will be shown on the Order Details page. If you want to check the compensation amount of a refunded order, you can find the Non-Delivery Compensation Amount on the Order Details page, then use the percentage of refunded to calculate the compensation amount. 

What Do We Expect After the NDI Service Is Launched?

With the new service added, there is no extra costs for merchants, Joom Logistics costs for the customers might increase, because now all the risks of non delivery will be covered by Joom Logistics and not the merchant. So, we expect from our merchants:

• To exclude the risk of non-delivery while setting the product prices for mid-price and high-priced products and lower the product prices;
• To upload new unique products with competitive prices that were too risky to sell on Joom without the compensation. You can analyze the customers' demand of your new product here.