i've had two claims issues w/ups, & both times, they paid, no questions asked, and both times, it was obviously the sellers' fault - once, the packaging was *unbelievably* bad, the second time, there was absolutely *no* shipping damage - the shipper sent damaged merchandise (not electronics). if *i* were ups, i woodn't a paid *either* claim.
regarding quantity of incidents occuring, i know someone who works at fedex, & they deliver ~4 million parcels every day. (i'm sure ups' volume is a *lot* greater.) if fedex has a 99.99% successful delivery rate, that still means 400 packages lost/damaged every day.
i think folks have to be a bit more realistic w/their expectations. as said before, over-pack, get as much buyer-seller info as possible, and make sure the merchandise is properly insured.
doug