(Yicai Global) Nov. 16 -- SF Express (Group) Co., a subsidiary of SF Holding Co. [SHE:002352], has refused to pay USD30,300 (CNY200,000) in indemnity for breaking birds' nests, which are traditional Chinese medicine tonics, and has appealed a suit filed by the sender, Chengdu Business Daily reported.

A woman surnamed Yang sent a 5-kilogram package containing birds' nests to Beijing from Sichuan province's Zigong city using SF Express on April 12. She paid CNY391 for the delivery and another CNY1,000 for CNY200,000 of insurance. Some of the nests were damaged when they arrived in Beijing and their intended recipient rejected them.

Yang believed SF Express should offer her CNY200,000 as 80 percent of the nests were broken. The courier disagreed, and they failed to reach an agreement.

Yang filed a lawsuit against the shipping firm with the People's Court in Zigong's Ziliujing district in June, demanding an insurance reimbursement of CNY200,00. She won the case, but SF Express filed an appeal with the Intermediate People's Court in Zigong.

The nests were damaged, but the insurance group assessed the damages at CNY40,000, as the nests were not totally destroyed and had not lost their medicinal properties, but the client refused that amount, the person in charge of the delivery said, adding that the client cannot claim a loss for the full amount because she cannot provide proof of the nests' original value.

The case should follow relevant insurance law regulations, which stipulate that insurance applicants shall claim for indemnity based on the actual value of commodities, and any amount above the actual value should be deducted, SF Express said. Judicial experts shall confirm the actual value of commodities, SF Express said.

This case should follow relevant contract law regulations because when the delivery man took the nests and fees, and recognized the insured indemnity on behalf of the company, it signified both sides agreeing on the commodity value in a contract, Yang said. The express company should offer compensation for lost or damaged nests as prescribed in the contract, she said.

A large difference in price between fragments of nests (broken nests) and complete ones exists.