[Federal Register Volume 67, Number 235 (Friday, December 6, 2002)]
[Proposed Rules]
[Pages 72626-72629]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-30935]
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POSTAL SERVICE
39 CFR Part 111
Indemnity Claims; Notice of Changes
AGENCY: Postal Service.
ACTION: Proposed rule.
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SUMMARY: The Postal Service proposes to revise its standards concerning
indemnity claims as set forth in the Domestic Mail Manual (DMM) S010,
Indemnity Claims; and related provisions of S913, Insured Mail, and
S920, Collect on Delivery (COD) Mail. Other than the proposed changes
concerning time periods for filing claims and retention periods for
undelivered Insured Mail, the changes clarify existing DMM provisions
or codify, in the DMM, policies not currently set forth in that manual.
DATES: Comments must be received on or before 30 days from date of
publication.
[[Page 72627]]
ADDRESSES: Written comments should be mailed or delivered to the
manager, Revenue and Field Accounting, 475 L'Enfant Plaza SW, Room
8831, Washington, DC 20260-5242. Copies of all written comments will be
available at the above address for inspection and photocopying between
9 a.m. and 4 p.m. Monday through Friday.
FOR FURTHER INFORMATION CONTACT: Gilbert LeMarier, 202-268-3333.
SUPPLEMENTARY INFORMATION: The proposed changes fall into several
categories. Each is addressed separately below.
I. Claim Filing Time Limits
The Postal Service is redesigning the claims system to ensure a
more timely response to claims filed by our customers. The Customer
Claims Response System (CCRS) will provide an interactive means,
utilizing Web technology, to capture claim information from designated
field units and to expedite claim adjudication. The product tracking
system will be utilized to obtain delivery information.
In conjunction with the redesign of the claim system, time limits
for filing a claim will be revised. The current policy that a customer
must file a claim immediately when the contents of an article are
damaged or missing will now have a clearly stated time limit of no
later than 45 days from the mailing date. Also, for a lost article, a
customer would be able to file sooner for certain special service
products. Insured and bulk insured service customers would be able to
file a claim 21 days from the mailing date versus the current 30-day
requirement. Customers of COD mail, Express Mail COD, and registered
COD special services would be able to file a claim 45 days from the
mailing date versus the current 60-day requirement.
For Insured Mail, Registered Mail, and COD services, the Postal
Service proposes that the maximum time limit for filing a claim be
reduced to no later than 180 days from the mailing date. These proposed
changes will enhance the efficient and timely processing of claims and
reduce the retention period of undeliverable, accountable mail.
II. Retention Periods
The Postal Service also proposes to reduce the retention of
undelivered Insured Mail items. Currently, undeliverable mail is
forwarded to mail recovery centers (MRCs). Under current procedures,
information about undeliverable accountable mail items (Insured Mail,
Registered Mail, and COD mail) is logged into a national claims
database and the accountable article is held for 1 year from the date
of receipt, the maximum time limit allowed for filing a claim from the
mailing date. The Postal Service proposes that retention periods for
accountable mail be shortened to 180 days from the date of receipt to
match the new proposed maximum time limit allowed for filing a claim.
This also would relieve capacity constraints on MRCs.
III. Documentation in Support of Claims
Under current mailing standards, only the sender may file a claim
for the complete loss of Registered Mail, Insured Mail, COD, or Express
Mail articles. The Postal Service proposes that either the sender or
addressee, whoever is in possession of the mailing receipt, may now
file a claim for the complete loss of a Registered Mail, numbered
Insured Mail, COD, or Express Mail article. Only the sender would be
allowed to file a claim for the complete loss of an unnumbered, insured
article.
As evidence of value when a sales receipt or invoice is not
available, the acceptance of a customer's statement with sufficient
detail to determine whether the value claimed is accurate would be
accepted only for items valued up to $100. Other acceptable evidence of
value would be a copy of a canceled check, money order receipt, credit
card statement, or other documentation indicating the amount paid. For
Internet transactions conducted through a Web-based payment network,
acceptable evidence of value is a computer printout of an online
transaction identifying the purchaser and seller, price paid, date of
transaction, description of item purchased, and an indication the
status of the transaction is completed.
As is the case with current policy, customer statements, receipts,
or other evidence of value supplied by the customer will not
necessarily be determinative of the value of the lost or damaged
article, particularly if other information indicates the actual value
at the time of mailing is different.
IV. Damage
To file a claim, the addressee must present the article, packaging,
and mailing container to the Postal Service for inspection. If the
sender, in conjunction with the CCRS, files the claim and the damaged
article is in the custody of the addressee, the sender's Post Office or
designated site will enter the claim data into the CCRS. The CCRS will
generate a letter to the addressee instructing that the article,
packaging, and container be presented to the Postal Service for
inspection.
V. Additional Grounds for Denial of Claims
The Postal Service proposes that indemnity will not be paid for
collect on delivery (COD), Insured Mail, Registered Mail, or for
Express Mail service in the following situations:
[sbull] Mailer refusing to accept delivery of the mailpiece on
return.
[sbull] Mail not bearing the complete names and addresses of the
sender and addressee, or both the recipient's address and return
address, and therefore is undeliverable.
[sbull] Event tickets received after the event.
[sbull] Software installed onto computers that have been lost or
damaged.
[sbull] A personal check remitted to the mailer for a COD article
and not honored by the financial institution upon which it is drawn.
[sbull] Damaged articles not claimed within the prescribed time
limits set forth in Postal Operations Manual (POM) 147.3.
[sbull] Personal time used to make handmade, hobby, or craft items.
VI. Time Limit To Appeal to the Consumer Advocate
The Postal Service proposes to clarify the time limit in which a
customer may forward an appeal to the Consumer Advocate, Headquarters.
If the manager of Claims Appeals at the St. Louis Accounting Service
Center (ASC) sustains a denial of a claim, any further appeal must be
filed with the Consumer Advocate, within 60 days from the date of that
decision.
VII. Valid Mailing Receipt
The Postal Service proposes to clarify that the appropriate mailing
receipt must be postmarked in order to be acceptable evidence of
insurance.
VIII. COD Changes
The Postal Service proposes to clarify that the mailer of a collect
on delivery (COD) article may not stipulate ``CASH ONLY'' and that the
recipient has the option to pay the charges by cash or personal check.
Although exempt from the notice and comment requirements of the
Administrative Procedure Act (5 U.S.C. 553(b), (c)) regarding proposed
rulemaking by 39 U.S.C. 410(a), the Postal Service invites comments on
the following revisions of the Domestic Mail Manual (DMM), incorporated
by reference in the Code of Federal Regulations. See 39 CFR part 111.
List of Subjects in 39 CFR Part 111
Administrative practice and procedure, Postal Service.
[[Page 72628]]
PART 111--[AMENDED]
1. The authority citation for 39 CFR part 111 continues to read as
follows:
Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 401, 403, 404, 414,
416, 3001-3011, 3201-3219, 3403-3406, 3621, 3626, 5001.
2. The following sections of the Domestic Mail Manual (DMM) are
revised as set forth below:
Domestic Mail Manual (DMM)
* * * * *
S Special Services
S000 Miscellaneous Services
S010 Indemnity Claims
* * * * *
2.0 GENERAL FILING INSTRUCTIONS
2.1 Who May File
A claim may be filed by:
[Reletter current items a, b, c, and d as new items b, c, d, and e. Add
new item a to read as follows:]
a. Only the sender, for the complete loss of an unnumbered, insured
article.
[Revise new item b to read as follows:]
b. Either the sender or addressee, who is in possession of the
mailing receipt, for the complete loss of a registered, numbered
insured, COD, or Express Mail article.
* * * * *
2.2 When to File
[Revise 2.2 to read as follows:]
A customer must file a claim no later than 45 days from the mailing
date when the contents of an article are damaged or missing from the
mailing container. For a lost article, a customer must file a claim
within the time limits in the chart below.
------------------------------------------------------------------------
When to file (from
mailing date)
-------------------
Mail type or service No No
sooner later
than than
(days) (days)
------------------------------------------------------------------------
Bulk Insured........................................ 21 180
COD................................................. 45 180
Express Mail........................................ 7 90
Express Mail COD.................................... 45 90
Insured............................................. 21 180
Registered.......................................... 15 180
Registered COD...................................... 45 180
------------------------------------------------------------------------
Exceptions: Claims for loss of insured and COD articles (including
insured articles sent to APO and FPO addresses) originating at or
addressed to post offices outside the contiguous 48 states may be filed
only:
a. After 45 days if article sent First-Class Mail, space available
mail (SAM), or parcel airlift (PAL) services.
b. After 45 days if article sent COD.
c. After 75 days if article sent by surface.
* * * * *
2.5 Evidence of Insurance
For a claim involving registered, insured, COD, or Express Mail
service, the customer must present any of the following evidence
showing that the particular service was purchased:
[Revise item a to read as follows:]
a. The original postmarked mailing receipt issued at the time of
mailing (reproduced copies are not acceptable).
* * * * *
[Revise item c to read as follows:]
c. The original sales receipt from an automated retail terminal
listing the mailing receipt number and insurance amount, only if the
original mailing receipt is not available (reproduced copies are not
acceptable).
2.6 Evidence of Value
The customer must submit acceptable evidence to establish the cost
or value of the article at the time it was mailed. (Other evidence may
be requested to help determine an accurate value.) Examples of
acceptable evidence are:
* * * * *
[Revise item b to read as follows:]
b. For items valued up to $100, the customer's own statement
describing the lost or damaged article and including the date and place
of purchase, the amount paid, and whether new or used (only if a sales
receipt or invoice is not available). If the article is handmade, the
statement must include the price of the materials. The statement must
describe the article in sufficient detail to determine whether the
value claimed is accurate.
* * * * *
[Add new item g to read as follows:]
g. A copy of a canceled check, money order receipt, credit card
statement, or other documentation indicating the amount paid.
[Add new item h to read as follows:]
h. For Internet transactions conducted through a Web-based payment
network, a computer printout of an online transaction identifying the
purchaser and seller, price paid, date of transaction, description of
item purchased, and assurance that the transaction status is completed.
2.7 Missing Contents
[Revise 2.7 to read as follows:]
If a claim is filed because some or all of the contents are
missing, the addressee must present the container and packaging to the
Postal Service when a claim is filed. Failure to do so results in the
denial of the claim.
2.8 Damage
[Revise 2.8 to read as follows:]
If the addressee files the claim, the addressee must present the
article with the packaging and mailing container to the Postal Service
for inspection. If the sender files the claim, the St. Louis ASC will
notify the addressee by letter to present the article, packaging, and
container to the Postal Service for inspection. Failure to do so
results in the denial of the claim.
2.9 Proof of Loss
[Revise introductory text and item a to read as follows:]
To file a claim, the sender must provide proof of loss for
unnumbered, insured mail. Proof of loss is not required for registered
mail, numbered insured, COD, or Express Mail claims. Any one of these
documents is acceptable:
a. A letter or statement from the addressee, dated at least 21 days
after the date that the unnumbered insured article was mailed,
reporting that the addressee did not receive the article. The statement
or a copy of it must be attached to the claim.
* * * * *
[Delete item c.]
2.10 Duplicate Claim
[Revise 2.10 to read as follows.]
A customer must file any duplicate claim for any mail type or
service within the following time limits:
No sooner than 30 days and no later than 60 days from the date the
original claim was filed.
[Delete the table.]
* * * * *
2.14 Nonpayable Claims
[Revise introductory text to read as follows:]
Indemnity is not paid for collect on delivery (COD), insured mail,
registered mail, or Express Mail services in these situations unless
otherwise stated:
* * * * *
[Revise item r to read as follows:]
r. Negotiable items (defined as instruments that can be converted
to cash without resort to forgery), currency, or bullion except as
provided in S911.2.0 for registered mail items or S010.2.12.c for
Express Mail items.
* * * * *
[[Page 72629]]
[Add items ac through aj to read as follows:]
ac. Mailer refusing to accept delivery of the parcel on return.
ad. Mail not bearing the complete names and addresses of the sender
and addressee, or not deliverable to either the addressee or sender.
ae. Event tickets (e.g., nonrefundable tickets for concert,
theater, sport, or similar events) received after the event and, for
insurance purposes, insured for loss, not for delay or receipt after
the event for which they were purchased.
af. Software installed onto computers that have been lost or
damaged.
ag. Personal check remitted to the mailer for a COD article and not
honored or otherwise payable by the financial institution upon which it
is drawn. If the personal check is lost in transit, it is the mailer's
responsibility to obtain a replacement check from the addressee.
Indemnity to the mailer is limited to stop payment charges incurred by
the addressee for the issuance of a replacement check, if the mailer
establishes that the addressee incurred the charge and was reimbursed
by the mailer for this amount.
ah. Damaged articles not claimed within the prescribed time limits
set forth in Postal Operations Manual 147.3.
ai. Personal time used to make handmade, hobby, craft, or similar
items.
* * * * *
3.0 PAYMENT
* * * * *
3.3 Dual Claim
[Revise 3.3 to read as follows:]
If the sender and the addressee both claim insurance and cannot
agree on which one should receive the payment, any payment due is made
to the sender unless the claim has already been paid to the addressee
upon presentation of the mailing receipt.
* * * * *
4.0 ADJUDICATION
* * * * *
4.2 Appeal
[Revise 4.2 to read as follows:]
A customer may appeal a claim decision by filing a written appeal
within 60 days of the date of the original decision. Except for an
unnumbered, insured article, the customer must send the appeal directly
to Claims Appeals (see G043 for address). For an unnumbered, insured
article, the customer must send the appeal to the post office where the
claim was filed. That post office forwards the appeal to the manager of
Claims Appeal at the St. Louis ASC.
4.3 Final USPS Decision
[Revise 4.3 to read as follows:]
If the manager of Claims Appeals at the St. Louis ASC sustains the
denial of a claim, then the customer may submit an additional appeal
within 60 days for final review and decision to the Consumer Advocate,
Postal Service Headquarters, who may waive standards in S010 in favor
of the customer.
* * * * *
S900 Special Postal Services
S910 Security and Accountability
* * * * *
S913 Insured Mail
* * * * *
2.0 MAILING
* * * * *
[Revise 2.7 to read as follows:]
2.7 Receipt
For each insured article mailed, the mailer receives the
appropriate postmarked receipt:
a. Form 3813 when the insurance coverage is $50 or less.
b. Form 3813-P when the insurance coverage is more than $50.
c. Form 3877 when multiple accountable mail articles are mailed at
one time.
* * * * *
S920 Convenience
* * * * *
S921 Collect on Delivery (COD) Mail
* * * * *
3.0 MAILING
* * * * *
3.4 Indelible Ink, Mailer Errors
[Revise 3.4 to read as follows:]
The particulars required on the form must be filled in by hand with
ink, typewritten, or computer printed. The Postal Service is not
responsible for errors that a mailer makes in stating charges to be
collected. The mailer can not stipulate ``CASH ONLY''. The recipient
has the option to pay the charges by cash or personal check.
* * * * *
An appropriate amendment to 39 CFR 111.3 to reflect these changes
will be published if the proposal is adopted.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 02-30935 Filed 12-5-02; 8:45 am]
BILLING CODE 7710-12-P