.
Reports by the Ombudsman
Under the Ombudsman Act 1976 (Cth), the Commonwealth Ombudsman investigates the
administrative actions of Australian Government agencies and officers. An investigation can be
conducted as a result of a complaint or on the initiative (or own motion) of the Ombudsman.
The Ombudsman Act 1976 confers five other roles on the Commonwealth Ombudsman—the role of
Defence Force Ombudsman, to investigate action arising from the service of a member of the
Australian Defence Force; the role of Immigration Ombudsman, to investigate action taken in
relation to immigration (including immigration detention); the role of Postal Industry Ombudsman, to
investigate complaints against private postal operators; the role of Taxation Ombudsman, to
investigate action taken by the Australian Taxation Office; and the role of Law Enforcement
Ombudsman, to investigate conduct and practices of the Australian Federal Police (AFP) and its
members. There are special procedures applying to complaints about AFP officers contained in the
Australian Federal Police Act 1979. Complaints about the conduct of AFP officers prior to 2007 are
dealt with under the Complaints (Australian Federal Police) Act 1981 (Cth).
Most complaints to the Ombudsman are resolved without the need for a formal report. The
Ombudsman can, however, culminate an investigation by preparing a report that contains the
opinions and recommendations of the Ombudsman. A report can be prepared if the Ombudsman is
of the opinion that the administrative action under investigation was unlawful, unreasonable, unjust,
oppressive, improperly discriminatory, or otherwise wrong or unsupported by the facts; was not
properly explained by an agency; or was based on a law that was unreasonable, unjust, oppressive
or improperly discriminatory. A report can also be prepared to describe an investigation, including
any conclusions drawn from it, even if the Ombudsman has made no adverse findings.
A report by the Ombudsman is forwarded to the agency concerned and the responsible minister. If
the recommendations in the report are not accepted, the Ombudsman can choose to furnish the
report to the Prime Minister or Parliament.
These reports are not always made publicly available. The Ombudsman is subject to statutory
secrecy provisions, and for reasons of privacy, confidentiality or privilege it may be inappropriate to
publish all or part of a report. Nevertheless, to the extent possible, reports by the Ombudsman are
published in full or in an abridged version.
Copies or summaries of the reports are usually made available on the Ombudsman website at
www.ombudsman.gov.au. Commencing in 2004, the reports prepared by the Ombudsman (in each
of the roles mentioned above) are sequenced into a single annual series of reports.
ISBN 978 0 9807966 1 2
Date of publication: June 2010
Publisher: Commonwealth Ombudsman, Canberra Australia
© Commonwealth of Australia 2010
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may
be reproduced by any process without prior written permission from the Australian Government,
available from the Attorney-General’s Department.
Requests and enquiries concerning reproduction and rights should be addressed to the
Commonwealth Copyright Administration, Copyright Law Branch, Attorney-General’s Department,
National Circuit, Barton ACT 2601, or posted at http://www.ag.gov.au/cca.
Requests and enquiries can be directed to the Director Public Affairs, Commonwealth Ombudsman,
GPO Box 442, Canberra ACT 2601; email ombudsman@ombudsman.gov.au or phone 1300 362
072 (calls from mobiles charged at mobile phone rates). This report is available on the
Commonwealth Ombudsman’s website http://www.ombudsman.gov.au.
EXECUTIVE SUMMARY ......................................................... 1
PART 1—INTRODUCTION ..................................................... 3
Background ............................................................................................................... 3
Fraud ...................................................................................................................... 3
Financial implications ............................................................................................. 4
Our investigation ....................................................................................................... 4
Australia Post and DFAT responses .......................................................................... 4
PART 2—SENDING PASSPORTS THROUGH THE POST ............ 6
How passports are sent ............................................................................................. 6
How the public sends passports ............................................................................. 6
How DFAT sends passports ................................................................................... 7
How foreign diplomatic missions send passports .................................................... 7
What happens when a passport is lost ...................................................................... 8
DFAT’s records of lost passports ............................................................................ 8
Australia Post’s records of lost passports ............................................................... 9
Compensation ........................................................................................................ 9
PART 3—ISSUES .............................................................. 11
Keeping track .......................................................................................................... 11
Setting an example ............................................................................................... 11
Information captured by Australia Post ................................................................. 12
Which service to use ............................................................................................... 12
Compensation for lost passports ............................................................................. 13
Extra Cover .......................................................................................................... 14
PART 4—CONCLUSIONS AND RECOMMENDATIONS ............. 16
APPENDIX 1—AUSTRALIA POST’S RESPONSE .................... 17
APPENDIX 2—DFAT’S RESPONSE ..................................... 21
ABBREVIATIONS AND ACRONYMS ...................................... 22
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 1 of 22
More than a million passports are sent through the Australian post each year. Most
commonly these are new passports issued by the Department of Foreign Affairs and
Trade (DFAT) and passports sent to and from diplomatic missions for visa purposes.
Australia Post carries the majority of these passports.
The Postal Industry Ombudsman noted an increase in complaints about passports
going missing in the post, from 1.2% of total complaints about Australia Post in
2007–08 to 2.2% in 2008–09. Although these complaints comprise only a small
overall percentage of complaints to our office, we consider that the security and
financial implications involved in the loss of a passport warrant treating this kind of
complaint seriously.
The most frequent passport-related postal complaints brought to this office are first,
that a passport has been lost, and second, that the amount of compensation offered
by Australia Post for the loss of the passport is inadequate. In investigating Australia
Post processes and practices relating to its handling of complaints about lost
passports we considered:
how Australia Post deals with complaints of this nature
the postal services used by passport holders and the compensation
arrangements available in case of loss.
We also sought information from DFAT, as a bulk sender of passports and the
agency responsible for issuing passports and dealing with reports of their loss.
As a result of our investigation, we have concluded that there are measures that both
Australia Post and DFAT could put in place to capture better data about lost
passports. This would enable more useful analysis of patterns of loss and expose
possible systematic stealing of passports.
We have also concluded that Australia Post should redraft its terms and conditions
and other information it makes available to the public about how to send passports
through the post, and the compensation payable if a passport is lost. Updated
versions could clarify the postal services available to customers and the protections
for customers against the direct costs of loss of a passport.
Generally speaking, we do not consider it unreasonable for Australia Post to exclude
payment of compensation for consequential loss (such as loss of income related to
time off work) from its terms of service. Customers should be made aware of this,
and should make passport and visa arrangements in ample time to deal with matters
if a passport is lost. If that is not possible, customers should consider alternative
arrangements that avoid the risk of loss in the course of carriage.
This report deals mostly with the inconvenience and damage encountered by
members of the public when a passport is lost in the post. There are, of course, other
considerations that make it important to minimise the risk of lost passports. Chief
among these is the need to safeguard the integrity of the Australian passport system
and reduce the risk for individuals that their personal information will be obtained by a
third party. The danger of identity theft is a prominent concern within government.
The recommendations in this report could go some way to reducing those and other
risks.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 2 of 22
Both DFAT and Australia Post have accepted our recommendations and advised us
that they are taking steps to implement the suggested changes and improvements.
We appreciate the detailed responses both agencies have provided, and their
assistance in explaining some of the issues involved in handling reports of lost
passports.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 3 of 22
1.1 More than one million passports are sent through the Australian post each
year—new passports issued by DFAT, and passports sent to and from diplomatic
missions for visa purposes. Many of these are sent by Australia Post’s registered
post service, which is designed for the carriage of valuable items and is the service
used by DFAT for sending newly-issued passports. However, a substantial proportion
of customers use Express Post or Express Post Platinum services, and a few use the
ordinary letter service.
1.2 Complainants who approach our office about a lost passport generally raise
two main concerns about the implications of a lost passport—the risk of identity
fraud, and the costs involved in replacing the passport and rearranging travel plans.
Fraud
1.3 Identity fraud is a serious issue with widespread ramifications. A report of the
Model Criminal Law Officers’ Committee of the Standing Committee of Attorneys-
General in March 2008 stated that:
Accurate measurement of the cost of identity crime is difficult and there are relatively few
statistics available on its impact in Australia. The Australian Institute of Criminology
reported that approximately one quarter of incidents involving fraud reported to the
Australian Federal Police involve ‘the assumption of false identities’. Identity Fraud in
Australia, a 2003 report by the Securities Industry Research Centre of Asia-Pacific (SIRCA)
for financial intelligence agency AUSTRAC, claimed that identity fraud cost Australian large
business $1.1 billion in 2001–02.
1.4 A passport, and the information it contains, can be an effective means of
assuming someone else’s identity, both here and overseas. Government agencies
such as the Australian Customs and Border Protection Service, the Australian
Federal Police (AFP) and DFAT each play a role in investigating passport fraud,
educating the public about passport security and ensuring passports utilise the latest
technology in an attempt to stop counterfeit activity.
1.5 Australia Post and DFAT have a memorandum of understanding enabling
Australia Post’s Corporate Security Group to work with DFAT’s Passport Fraud
section to investigate possible incidents of fraud. Where criminal activity is
suspected, the AFP may also be involved.
1.6 Australia Post is usually the first point of contact for a person whose passport
has gone missing in the post. As such, Australia Post is in a good position to identify
and act upon an issue that potentially has wider implications than the immediate
impact on the passport holder.
1.7 For these reasons, Australia Post’s procedures when presented with a
complaint about a passport lost in the post are significant in the context of the
detection and future prevention of fraud. For example, tracking the locations in which
passports go missing may demonstrate patterns of loss that provide investigative
leads for law enforcement agencies.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 4 of 22
Financial implications
1.8 While identity fraud is important to complainants, the more pressing concern
is usually the impact the loss will have on the complainant’s immediate travel plans.
For the majority, the cost of an overseas trip is at stake, which could amount to
thousands of dollars. For some, the potential loss is more personal—the lost
opportunity to attend a wedding or participate in some other one off event, for
example.
1.9 There are also consequential costs associated with the loss of a passport,
which can include phone calls, domestic travel, time off work, postage and obtaining
replacement documents. These costs can be significant, as the following case study
illustrates.
Case study—consequential losses
Mr and Ms A sent their passports to a foreign diplomatic mission via Registered Post. When the
passports did not arrive at the consulate, both Mr and Ms A were forced to change their travel plans,
apply for new emergency passports, apply for new identification documents due to a change in the law,
undertake significant domestic travel to obtain the necessary documents and arrange additional yellow
fever inoculations due to the time passed. The total cost came to more than $4,000.
1.10 Our investigation considered Australia Post’s and DFAT’s internal policies
and procedures relating to lost passports, as well as relevant public information, such
as the Passports website (www.passports.gov.au).
1.11 In Australia Post’s case, we also considered its service terms and conditions,
its Post Guides, information published on its website, and information appearing on
postal products.
1.12 Australia Post’s postal services are governed by Australia Post’s terms and
conditions. The terms and conditions are made in accordance with the provisions of
the Australian Postal Corporation Act 1989, and bind both Australia Post and anyone
choosing to use its services.
1.13 The terms and conditions are expanded upon in Post Guides published by
Australia Post, which are available online and from post offices. The Post Guides are
interpretive and outline Australia Post’s practical application of the terms and
conditions. Where inconsistencies exist between the two, the terms and conditions
take precedence.
1.14 In response to our enquiries, DFAT provided us with information about its lost
passport reporting practices, details of its postage choices, and details of the
administrative action taken when a passport is reported as lost or stolen.
1.15 Many of the complaints brought to us relate to passports lost in transit to or
from foreign diplomatic missions in Australia. In view of this, we also conducted
research into postal methods used or recommended by these authorities.
1.16 Australia Post’s response to a draft of this report is reproduced in full at
appendix 1.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 5 of 22
1.17 Australia Post has accepted our recommendations and has outlined the steps
it is taking or will take to implement them. We welcome Australia Post’s recognition of
the importance of the issue, and its commitment to improving those aspects of its
services most relevant to the safe carriage of passports through the post.
1.18 We are particularly pleased to note that Australia Post’s current review of its
terms and conditions and Post Guides aims to remove any ambiguity where
passports are concerned by reclassifying them as ‘valuable documents’. Similarly, we
commend Australia Post’s proposal to clarify the information on the front of the
Express Post envelope. Both the review and the clarification on the envelope will
assist customers to make a better informed decision about which postal service to
use.
1.19 We also welcome the launch of Australia Post’s enhanced Express Post
Platinum service, which would appear to offer the more popular features of both the
Registered Post and Express Post services.
1.20 DFAT’s response to a draft of this report is reproduced in full at appendix 2.
1.21 DFAT has advised that technical limitations mean it is not currently able to
collect the level of information about lost passports that this report recommends.
However, DFAT expects that improvements in the passport application system will
improve its capacity in this respect.
1.22 DFAT has also advised that it has developed advice on secure methods of
posting Australian passports, and has committed to making this information available
to the public through the passports website.
1.23 We welcome DFAT’s commitment to engaging with this issue to the extent
that it has, and its practical approach to alerting the Australian public to the potential
risks of sending passports through the post.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 6 of 22
2.1 As part of our investigation, we analysed our complaint data to identify how
people had sent passports through the post: whether they had used Registered Post,
Express Post or some other service. This is relevant to two issues in particular:
does the method by which passports are sent through the post affect the
likelihood of their being lost?
which service should customers choose to send passports through the post in
order to obtain compensation in the event of loss, and are customers aware
of limitations or exclusions of liability that apply if they choose other postal
services?
How the public sends passports
2.2 In the current market, there are two main postal services used by the public to
send passports—Registered Post and Express Post (use of the Express Post
Platinum service, which requires a signature upon delivery, is increasing). Our
records show that the majority of complaints to this office about lost passports in
2007–09 concerned these two services.
Figure 1: Breakdown of complaints about lost passports for financial years 2007–08 and
2008–09, by postal service used
2.3 Our complaint records also show that when people send passports through
the mail, they consider several service features—security, tracking in transit, speed
of delivery, proof of delivery, and compensation for service failure. These preferences
or expectations may only become relevant for, or be fully appreciated by, the
passport holder in the event of non-delivery by the expected date.
2.4 Express Post and Registered Post offer varying service features. Australia
Post’s promotion of these services emphasises the aspects of the service considered
most desirable—speed and security. Express Post is promoted as the fastest way to
send something through the post, while Registered Post is promoted as the most
secure, as the cost of this service includes obtaining a signature on delivery.
27
24
8
7
2
Express Post = 27
Registered Post = 24
Express Post Platinum = 8
No information = 7
Ordinary post = 2
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 7 of 22
Registered Post also offers an enhanced level of compensation for loss and damage,
and Extra Cover (formerly known as ‘insurance’) can be purchased for Registered
Post items, but not Express Post.
2.5 Our complaint data shows that senders expect an Express Post item to be
fast and will regularly choose this service when time is of the essence, as when
finalising travel arrangements close to the date of travel. Foreign diplomatic missions
also regularly recommend Express Post as an appropriate postal method.
2.6 However, when an Express Post item does not arrive within the expected
timeframe, the service guarantee only extends to provision of a replacement satchel
or envelope. It does not mean that Australia Post accepts liability for any associated
costs. The nature of the guarantee is set out on the envelope/satchel, but complaints
to this office indicate that senders often fail to understand the meaning of the
guarantee until things go wrong.
2.7 Our complaint records show that Registered Post is often chosen to send
passports because the sender believes the service to be more secure than Express
Post. This is partly because a signature is required for delivery. However, some
senders mistakenly believe that Registered Post items are treated differently during
transit, and are less subject to interference.
2.8 Australia Post has confirmed as part of this investigation that Registered Post
items are carried in the same mail stream as ordinary mail, and that no extra level of
security is applied during transit. The security benefits derive from the requirement
for a signature to be obtained upon delivery, rather than special handling.
How DFAT sends passports
2.9 DFAT sends more than a million passports through the post every year using
the Registered Post service.
2.10 DFAT has used different postal services over time, and a comparison of its
loss rates for those periods provides a useful contrast between Registered and
ordinary post.
2.11 DFAT started sending passports by ordinary post from 1 January 1998 as a
cost-cutting measure.
1
In DFAT’s 1998–99 annual report it was noted that concerns
about ordinary mail being used to send passports was a significant complaint theme.
From July 2002, in response to increasing security concerns, DFAT resumed sending
all passports by Registered Post.
2.12 Of the 1,472,674 passports DFAT produced in 2008–09,
2
only 187 were
subsequently reported as lost in the post between DFAT and the applicant.
3
This
compares favourably with 2001–02, when fewer passports were produced but 2,079
of those were lost in transit between DFAT and the applicant.
4
The comparison tends
to support DFAT’s decision to revert to using Registered Post.
How foreign diplomatic missions send passports
2.13 Foreign diplomatic missions in Australia provide varying degrees of guidance
about how to send passports to and from their offices. We visited the websites of 24
foreign diplomatic missions in the course of our investigation: nine recommended
1
Auditor General: Audit Report No. 37 2002–03, Passport Services, page 78.
2
DFAT annual report 2008–09, chapter 2.1.2.
3
DFAT response to Ombudsman investigation.
4
Auditor General: Audit Report No. 37 2002–03, Passport Services, page 78.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 8 of 22
Registered Post for sending passports to them, eight recommended Express Post,
three recommended Express Post Platinum and nine gave no advice (of the missions
that did give advice, some recommended more than one postal service).
2.14 We asked DFAT if it took an interest in the postal practices of other
authorities that may be expected to regularly handle Australian passports. DFAT
advised that it does not consider it has a role in advising foreign diplomatic missions
about Australian postal methods. DFAT considers the mail procedures used or
promoted by these authorities to be a sovereign matter for the responsible
government.
2.15 A passport holder is required under the Passports Act 1954 (Passports Act) to
report a lost or stolen passport immediately they become aware of the loss. Once a
report is made, the passport is cancelled.
2.16 In practical terms, if a passport is lost in the post the passport holder is also
likely to contact Australia Post. Australia Post’s Customer Contact Centre (CCC) will
usually make enquiries, depending on the postal service used. For example, it will
check its electronic system to see if it can locate any relevant scanning events,
signatures or other information that may assist to pinpoint the location of the
passport.
2.17 If there is no information on the system, or the passport was sent by ordinary
post, the CCC may make enquiries with the post office at which the passport was
lodged, the destination post office and/or the relevant mail redistribution centre
(formerly known as the dead letter office).
2.18 If the passport cannot be located, Australia Post may provide compensation
to the sender in accordance with the terms and conditions of the postal service used.
2.19 Both DFAT and Australia Post keep records of reports or complaints about
lost passports. The purpose of these records, the details captured and the way each
organisation uses the information varies.
DFAT’s records of lost passports
2.20 It is difficult to obtain reliable data on how many passports are lost in the post
in Australia each year. DFAT keeps records of how many Australian passports are
reported as lost or stolen in any given year (34,422 in 2008–09), and how many new
passports are reported lost in the post between DFAT and the applicant (187 in
2008–09). However, it does not generally distinguish between different types of loss.
For example, there are no records showing how many passports were stolen in
burglaries versus how many were lost in the post after being sent by the holder to a
foreign diplomatic mission for visa purposes.
2.21 Our complaint records show that of the complaints about lost passports
received by our office in 2008–09, more than half were lost in transit to or from a
foreign diplomatic mission. Where the passport involved was Australian, the loss
would eventually have been reported to DFAT in accordance with the Passports Act.
2.22 The amount of information DFAT collects about lost and stolen passports
depends on how the loss is reported. There are four possible ways to report a lost or
stolen Australian passport: through a new passport application, by phone to the
Australian Passport Information Service, online via the Passports website, or on a
Lost or Stolen report form (a DFAT ‘PC2’). In all cases DFAT records the passport
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 9 of 22
number, the date the incident occurred and whether the passport was lost or stolen.
Where the loss is reported online or on a ‘PC2’, DFAT also records details of the
place the incident occurred and how the incident occurred.
2.23 The action taken by DFAT in response to a report about a passport lost in the
post depends on who sent the passport.
2.24 Where DFAT sent the passport, the loss is recorded and the passport
cancelled. DFAT also contacts Australia Post, which investigates the circumstances
of the loss. If the item cannot be located, Australia Post will compensate DFAT for
the cost of re-printing and mailing a replacement. In these circumstances, where the
loss is reported within 60 days, there is no additional cost to the passport-holder, and
a penalty is not applied.
2.25 Where a passport which DFAT did not send is reported as lost, DFAT records
the fact of the loss, cancels the passport and applies a ‘lost or stolen’ penalty to the
cost of a replacement passport. Under the Passports Act, these penalties increase
with the number of passports reported as lost or stolen by the passport-holder over a
particular period.
Australia Post’s records of lost passports
2.26 By law, the loss of a passport must be reported to DFAT. However, the
circumstances of the loss will often also be taken up with the person or entity the
applicant believes is responsible. In the case of a passport lost in the post, the
responsible entity is Australia Post.
2.27 Australia Post has advised that it received 697 enquiries about lost passports
in 2008–09, including 200 from DFAT.
2.28 Australia Post records complaints about missing mail items as a separate
category within its electronic Customer Management System (CMS). The entry
includes a description of the lost item and its contents. Data relating to the type of
missing item, including passports, can be retrieved by Australia Post using data
mining tools.
2.29 While the amount of information recorded by Australia Post in its CMS
depends to a certain extent on the staff member entering the information, the
capacity for recording detailed information exists and can be searched as required.
2.30 Currently the CMS generates an alert when an above average number of
‘missing mail items’ complaints are registered against a particular postcode. Where
an alert is triggered, Australia Post’s Corporate Security Group may investigate.
2.31 The CMS does not routinely generate an alert about passport complaints, but
it does produce monthly postcode alert reports that include information about missing
item contents. On the basis of these reports, Australia Post’s Corporate Security
Group may request further reports using different criteria.
Compensation
2.32 By the time a complaint about a lost passport is made to our office, the
passport itself is usually understood to be irretrievable and the complaint relates to
Australia Post having declined to cover the costs incurred by the passport holder.
2.33 We have encountered some inconsistency over time in Australia Post’s
stance on whether, and if so, how much, compensation is payable. Accordingly, we
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 10 of 22
analysed the compensation available when a passport is lost under Australia Post’s
terms and conditions. We also considered the information available to the public
about compensation for lost passports.
2.34 Australia Post’s general terms and conditions exclude liability where the item
being sent is a ‘non-negotiable security’.
5
According to its definition,
6
this includes
passports. This means that Australia Post is under no obligation under its terms and
conditions to pay compensation when an ordinary or Express Post mail item
containing a passport is lost. However, the sender of an Express Post item that does
not arrive at its destination in accordance with the service guarantee is entitled to
claim a replacement satchel.
2.35 Compensation for Registered Post items is payable under a different part of
the terms and conditions. This also specifically excludes cover for ‘non-negotiable
securities’,
7
and defines ‘non-negotiable securities’ as including passports.
8
2.36 However, Australia Post’s Post Guides state that compensation of up to $100
is payable for document reconstruction costs when a ‘non-negotiable instrument’,
also defined as including a passport, is sent by Registered Post.
9
We are aware from
previous complaints to our office that Australia Post will, on occasion, pay
compensation in respect of passports that have been lost when sent by Registered
Post.
2.37 Australia Post has advised us that the conflicting information in the terms and
conditions and the Post Guides is the result of an oversight during a major review of
the same, which was undertaken in 2001. Australia Post says it was never the
intention to exclude passports from eligibility for compensation if sent by Registered
Post. We discuss the proposed availability of compensation for lost passports in
more detail later in this report.
5
Australia Post Terms and Conditions, s 74.1.1.
6
Australia Post Terms and Conditions, s 67.1.3.
7
Australia Post Terms and Conditions, schedule 1, 8.1.1.
8
Australia Post Terms and Conditions, schedule 1, 2.8.
9
Post Guide—Letter Post and Electronic Mail Within Australia, November 2005, L3.3.2;
Post Guide—General, September 2007, G6.5.4.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 11 of 22
Setting an example
3.1 We acknowledge DFAT’s view, supported in principle by the Passports Act,
that individual passport security is ultimately a matter for the passport holder. We
also acknowledge that postal services used by foreign diplomatic missions are
ultimately a matter for the government concerned.
3.2 Australian passports remain the property of the Australian Government after
issue, and Australia may be said to have a national interest in minimising the number
of passports that are lost—possibly stolen—each year. DFAT is the agency best
placed to promote this interest.
3.3 DFAT can draw upon its own experience of sending passports through the
post to make recommendations about the best way of posting an Australian passport.
Also, as the agency to which the loss of all Australian passports must be reported,
DFAT has a unique opportunity to analyse the circumstances of loss and seek to
draw conclusions about how loss might be minimised.
3.4 The level of information collected about the loss of a passport depends on
how it is reported. For example, DFAT records only the fact of a lost passport if it was
mailed by someone other than DFAT. The amount of information collected also
varies according to which of the four methods of reporting a lost or stolen passport is
used.
3.5 Without a data collection process that includes specific information about how
a passport came to be lost, it is not possible for DFAT or anyone else to obtain a true
indication of how many Australian passports are lost in the post. Further, it seems to
us that in not capturing the same information in every instance that a loss is reported,
DFAT is losing an opportunity to gain an insight into how and why Australian
passports are lost.
3.6 In our view, DFAT should capture information in relation to any lost passport,
including whether it was lost in the post, and if so, which postal service was used to
send it. DFAT could also inform the public, based on its own experience of posting
passports, that the rate of loss appears to be significantly lower when the Registered
Post service is used.
3.7 DFAT already plays an active role in educating the public about general
passport security. There is advice on DFAT’s website and in some of its passport-
related pamphlets about how to keep passports safe. It is our view that this material
would be enhanced by the inclusion of information about postal risks and possible
ways to mitigate them.
3.8 In response to our investigation, DFAT has said that it will review the
information on its website with a view to including mention of postal security. We
welcome DFAT’s willingness to share its experience in this way.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 12 of 22
Information captured by Australia Post
3.9 DFAT is required to record the number of Australian passports lost overall,
and has the capacity to collect details about how they are lost. However, people
generally complain to Australia Post when a passport is lost in the post.
3.10 Complaint data provides an organisation with a rich source of information
about ongoing and potential problems with its operations. Equally, it can be an
important pointer to areas needing improvement. We consider that there is scope for
Australia Post to make additional use of its complaint data to address passport
security issues.
3.11 Australia Post does not treat lost passport complaints separately to
complaints about other lost items, except in response to a specific request from an
authorised party such as the Corporate Security Group. Lost mail complaints are
primarily grouped by postcode, not content.
3.12 This means that several missing passport enquiries could be registered
against a particular postcode without the system identifying an issue. Australia Post
could therefore lose an opportunity to identify a potentially significant spike in
passport-related complaints.
3.13 Australia Post has also advised that it is difficult to extract information about
postal services used in incidents where passports have been reported as missing.
Capture of this information in a readily retrievable form would allow Australia Post to
analyse whether one particular postal service, say Registered Post, was preferable to
another in terms of mail security for passports.
3.14 One of the aims of our investigation was to determine which Australia Post
service is most suitable for sending passports through the post, and why.
3.15 Both Registered Post and Express Post Platinum services are promoted as
giving the sender ‘peace of mind’ because a signature is obtained on delivery.
10
We
have observed that senders regularly do not realise that a signature on delivery does
not necessarily mean the item will be delivered into the hands of the addressee.
Person-to-person delivery is an additional option available for purchase with the
Registered Post service.
3.16 In addition, senders may not realise that (as previously discussed) Registered
Post is not treated any differently to other post items while in transit.
3.17 We have received several complaints about passports sent by Registered
Post or Express Post Platinum being delivered to the wrong person. Perhaps
understandably, these complainants were particularly concerned about identity theft,
as they had assumed the item could only be signed for by the addressee. In none of
these cases was Australia Post able to determine who had actually signed for the
item, or what had happened to the passport inside.
3.18 Investigating complaints of this kind is further complicated when the
addressee is not expecting the passport by a specific date (for example, when
waiting on a passport to be returned from a diplomatic mission after a visa
10
Australia Post Registered Post brochure, July 2009; Express Post Platinum web page—
http://www.auspost.com.au/BCP/0,1467,CH2528~MO19,00.html viewed 3.3.10.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 13 of 22
application). In these circumstances, there could be a delay before a mis-delivery is
discovered.
Case study—time lapse
Ms B’s passport was sent to her by the British High Commission within days of her visa application, but
it was delivered to someone else. Ms B did not realise the High Commission had sent the passport until
she made enquiries after the recommended processing timeframe had elapsed. Upon investigation, it
was found that the signature obtained on delivery did not match that of Ms B, or of anyone else in her
household. No further action could be taken to retrieve the item, as the delivery person could not recall
the delivery, which had taken place almost a month prior. Ms B had to cancel her passport and
rearrange her travel.
3.19 We do not suggest that there should be an additional level of security or
scrutiny applied to the Registered Post service. However, it is important that sufficient
information about the features and benefits of the different postal services is
available to customers.
3.20 Where a mail item is lost in the post, Australia Post may, in accordance with
its terms and conditions, compensate the sender. With Registered Post the basic
maximum compensation payable is $100, but Extra Cover may be purchased for
higher amounts. With any other postal method, the maximum payable compensation
is $50. Extra Cover cannot be purchased.
3.21 However, compensation is not payable in all circumstances where an item is
lost. As discussed previously, the definition of ‘non-negotiable security’ in Australia
Post’s terms and conditions appears to exclude Australia Post’s liability to pay
compensation for lost passports regardless of the postal service used.
3.22 Australia Post’s definition of a passport in its terms and conditions is
inconsistent with the definition in its Post Guides, and apparently does not reflect
Australia Post’s intention to make Extra Cover available in relation to the carriage of
passports.
3.23 The use of somewhat technical terms such as ‘non-negotiable security’ to
describe passports can lead to confusion, particularly when it comes to claiming
compensation for a lost item. The confusion may be heightened by the fact that a
passport would not usually be described as a ‘security’.
3.24 Notwithstanding this, Australia Post considers that its Customer Contact
Centres would not refuse compensation for a lost passport because compensation
decisions are based on the information in the Post Guides, not the terms and
conditions.
3.25 We consider the conflicting information concerning the definition of passports
problematic and in need of remedy. Despite Australia Post’s assurances, it has been
our experience that the resulting lack of clarity can lead to inconsistent case
outcomes, as demonstrated by the following two case studies.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 14 of 22
Case studies—same problem, different outcome
Mr C sent his passport by Express Post Platinum to the Korean Embassy to obtain a visa. When it was
lost, he incurred more than $2,000 in direct and related expenses, as he needed the visa for work
purposes. Australia Post said it would not compensate him because he had not used Registered Post to
send his ‘non-negotiable instrument’. It maintained that under the terms and conditions, he was only
entitled to a replacement Express Post Platinum envelope.
Ms D was told by Australia Post that an Express Post item she had been expecting, and which
contained her passport, had been delivered. Ms D disputed this, as she had not received the item. Ms D
had to cancel her passport. Australia Post compensated her $50.
3.26 We understand that as a result of our investigation Australia Post intends to
amend its terms and conditions to bring them into line with the Post Guides. That is,
Australia Post intends to re-define passports and to offer compensation for passports
lost in the post if, but only if, they are sent by Registered Post.
3.27 We do not believe there is any reason passports cannot be referred to as
‘passports’ in Australia Post’s terms and conditions, Post Guides and related
information. We consider them to be a type of document posted in sufficient
quantities to warrant a specific reference. Using plain English in public information
would prevent the kind of confusion created by the current descriptions.
3.28 It would also be beneficial—if compensation will not be payable for passports
lost when sent by Express Post, Express Post Platinum, or ordinary mail—for
Australia Post to make this explicit in its publicity material for these services. Our
complaint data suggests that Express Post and Express Post Platinum are commonly
used for carriage of passports.
3.29 Express Post envelopes carry a warning against their use for mailing
‘valuables’, which it lists as including cash, jewellery and precious stones. It would
not be unreasonable, therefore, for customers to assume that Express Post is an
appropriate service for sending passports through the mail, especially given that
printed on the envelope are the words ‘for letters and documents only’. If passports
should not to be sent via the Express Post service, we consider that a specific
exclusion statement should also be printed on the envelope.
Extra Cover
3.30 Australia Post recommends Registered Post for sending valuable items
because a signature is required for delivery, and because a higher level of
compensation is payable should the item be lost or damaged. While the maximum
compensation available is $100, Australia Post offers an Extra Cover service where,
for an additional fee, the customer can insure their Registered Post item against loss
or damage up to $5,000.
11
3.31 There are several exclusions in the Extra Cover service terms and conditions
that have an impact on passports sent through the post.
12
Given the inconsistencies
in the definition of passport throughout the current material, the impact of these
exclusions is difficult to evaluate.
3.32 In one complaint we received, the complainant was offered $100 after
incurring significant expenses when her passport, sent by Registered Post, was lost.
11
Australia Post Terms and Conditions, Schedule 1.
12
Australia Post Terms and Conditions, Schedule 1, s 8.1.1.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 15 of 22
Australia Post advised that the complainant was only entitled to $100 because she
had not purchased Extra Cover. The implication was that the complainant could have
purchased Extra Cover to the amount required to have her passport re-issued.
However, the Post Guides state that:
Registered Post offers compensation to reimburse reasonable document reconstruction
costs up to the limit of $100. This covers the construction or replacement of an exact
duplicate of a lost or damaged non-negotiable instrument, such as a passport ...
13
3.33 There is no reference in the terms and conditions to restricting the availability
of Extra Cover where the costs involved relate to document reconstruction. In this
regard, the further limitation of document reconstruction costs in the Post Guides
lacks support in the terms and conditions.
3.34 Australia Post’s terms and conditions expressly exclude liability for general
consequential loss. Our office does not consider this to be unreasonable. We would
not, generally, expect Australia Post to reimburse a consequential cost such as an
airfare. Similarly, we would not expect Australia Post to provide cover for future
14
possible lost or stolen passport penalty fees, as we see these as constituting a
consequential loss for the passport holder.
3.35 However, given Australia Post is not obliged to compensate for consequential
loss in any case, there does not appear to be any particular reason customers cannot
purchase Extra Cover up to the actual cost of replacing the item to be sent—in the
case of a passport, this would usually be around $200–300.
13
General Post Guide, September 2007, paragraph G6.5.4.
14
By which we mean the possibility that after a passport is lost in the post, the holder loses
another passport for which they will then be charged ‘prior lost or stolen’ fees. However if
a customer has previously lost a passport and knows that losing another one will incur a
lost or stolen fee, then as a matter of principle there would seem to be no reason why
they should not be able to purchase Extra Cover against that risk.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
Page 16 of 22
4.1 The vast majority of passports sent through the post reach their destination
without any problems. However, it is the significant impact on the public of those few
that do not which has led to this issue coming to our attention, and to the
recommendations contained in this report.
4.2 We consider that Australia Post and DFAT could both usefully take steps to
review the way in which they collect and analyse data about lost passports. This
could provide more specific information about patterns of loss, or contributing factors
such as method of postage used.
4.3 In addition, Australia Post should review the terms and conditions upon which
it carries passports, and redraft them and associated guides and publications in plain
English to make it clear which postal services are appropriate for carrying passports
and what compensation is payable if passports are lost in the post.
4.4 As a result of this investigation, I have made the following recommendations.
Recommendation 1—Where a passport is reported to DFAT as lost, DFAT should in
each case record the details of how the loss occurred and, where loss occurred in
the post, the details of the postal service used.
Recommendation 2—DFAT should consider providing additional information to the
Australian public and to foreign diplomatic missions that handle Australian passports
about the most secure way of posting passports.
Recommendation 3—Australia Post should review its data capture and analysis
capacity as it relates to lost passports, with a view to reporting separately on
passport loss by geographical location and type of postal service used.
Recommendation 4—Australia Post should use plain English in its public
information and refer to passports as passports in its terms and conditions and other
publications.
Recommendation 5—Australia Post should review its terms and conditions and
Post Guides to ensure clear and consistent treatment of passports in them.
Recommendation 6—If passports are to be excluded from compensation when
carried by the Express Post and Express Post Platinum services, Australia Post
should make specific reference to this on relevant envelopes and satchels.
Recommendation 7—Australia Post should review the availability of Extra Cover to
compensate for the basic cost of replacing a lost passport, and ensure that its
published material sets out its position clearly and consistently in its terms and
conditions.
Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
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Foreign Affairs and Trade: passports lost in the mail
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Foreign Affairs and Trade: passports lost in the mail
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Commonwealth and Postal Industry Ombudsman—Australia Post and Department of
Foreign Affairs and Trade: passports lost in the mail
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CCC
Customer Contact Centre (Australia Post)
CMS
Customer Management System (Australia Post)
Consequential loss
Indirect loss or damage related to an act or omission by
Australia Post, including loss of profits, income, interest
or financial penalties applied by third parties.
Delivery person
The person responsible for delivery of mail to the
customer. For the purposes of this report, the definition
also includes contractors with this responsibility.
DFAT
Department of Foreign Affairs and Trade
Item
Mail item, including a parcel or envelope.
Person-to-person
An additional service available with Registered Post—
for an additional fee the item will be delivered to, and
signed for by, the addressee only.
Post Guides
Periodically published guides to Australia Post’s
provision of postal services. Available online and in
hardcopy upon request.
s
Section
Signature on delivery
For Express Post Platinum and Registered post items—
Australia Post will obtain a signature from the person to
whom the item is delivered, which may not be the
addressee. The exception is where the sender has paid
for the Person-to-person service.
Service guarantee
For Express Post items—if the item is not delivered the
next business day after posting (subject to certain
conditions), the sender is entitled to an equivalent value
envelope or satchel free.
Tracking
As Express Post and Registered Post items move
through the postal system, they are scanned at various
points (generally at or around the destination delivery
centre, although a lodgement scan may in some cases
be available). These scans allow limited electronic
tracking of those items.
