Federal Register, Volume 74 Issue 67 (Thursday, April 9, 2009)

[Federal Register Volume 74, Number 67 (Thursday, April 9, 2009)]
[Rules and Regulations]
[Pages 16124-16126]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-8038]

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POSTAL SERVICE

39 CFR Part 111

Insurance Claims Process Changes

AGENCY: Postal Service.^TM

ACTION: Final rule.

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SUMMARY: The Postal Service is revising its regulations governing the
processing and adjudication of domestic mail insurance claims in order
to streamline the claims process and to provide customers with more
consistent service.

DATES: Effective Date: May 11, 2009.

FOR FURTHER INFORMATION CONTACT: Monica Grein, 202-268-8411.

SUPPLEMENTARY INFORMATION: On January 27, 2009, the Postal Service
published a proposed rule in the Federal Register (Volume 74, Number
16, pages 4727-4729), inviting comments on a set of proposed revisions
to the procedures governing the processing and adjudication of domestic
mail insurance claims. One set of comments was received. After
reviewing those comments, and upon further consideration of the
proposed revisions, the Postal Service has decided to adopt the
proposed regulations with minor revisions described below.
As noted in the SUPPLEMENTARY INFORMATION section of the proposed
rule, the Postal Service is revising its regulations to make the online
claims processing service available to customers who purchase domestic
insurance through any retail channel--i.e., USPS.com,[supreg] Automated
Postal Center[supreg] kiosks, local Post Office^TM
facilities, or authorized PC Postage[supreg] providers. In addition,
Express Mail[supreg] customers may file online claims, even if no
additional insurance was purchased. Collect on Delivery (COD) and
Registered Mail^TM claims may be filed by mail or at a Post
Office; however, they cannot be filed online.
Under this final rule, a customer may also file a claim by
downloading a form from USPS.com and mailing it directly to Postal
Service Accounting Services in St. Louis, MO, or continue to file the
claim form at a local Post Office and have it sent to St. Louis for
them.
To ensure consistency and service quality, all claims will now be
adjudicated by Accounting Services. Local Post Office personnel will no
longer adjudicate claims.

[[Page 16125]]

The damaged goods inspection policy for domestic claims is also
changed. Customers must retain the damaged article and container,
including packaging, wrapping, and any other contents received, until
the claim is fully resolved. Customers are no longer required to take
these materials to the Post Office at the time a claim is filed.
Rather, upon receiving a request from the Postal Service, they are
required to turn the materials over to their local Post Office for
inspection, retention, and disposition in accordance with the claims
decision.
The Registered Mail section is changed by updating the term
``uninsured Registered Mail'' to ``Registered Mail with no declared
value'' to reflect current policy.

Evaluation of Comments Received

The Postal Service received one set of comments. In its submission,
the commenter suggested that the Service adopt one consistent procedure
for filing claims instead of different procedures for different mail
types. All domestic claims, except COD and Registered Mail, can be
filed online. The Postal Service appreciates the interest in a uniform
filing procedure, and will consider this interest as the claims
procedures evolve.
The commenter also expressed concerns about the customer
requirement to retain the contents and all packaging materials until
the claim is fully processed. The commenter suggested that the Postal
Service instead accept digital photographs as proof of damage or proof
of missing contents, and allow packaging to be discarded, with the
contents retained, pending final disposition. The Postal Service
believes that the requirement to retain the contents and packaging is
necessary and is consistent with standard industry practices. While
photographs may be helpful, they are not a substitute for the actual
materials at the basis of a claim and which the Postal Service may need
to examine. Furthermore, a customer who files online may upload digital
evidence of his or her damaged item, but will need to retain the item
for possible examination by the Postal Service. The Postal Service is
confident that the revised process improves the inspection requirements
for customers, and will consider further improvements in the future.
The commenter also suggested that the Postal Service modify the
timeframe within which a mailer may file an inquiry. The Postal Service
has determined that this suggestion is outside the scope of this final
rule.
Finally, the commenter suggested that a photocopy of a mailing
receipt be acceptable as evidence of insurance as long as the copy
matches the information on the package. After considering this comment,
the Postal Service has revised section 3.1.a. to permit the submission
of photocopies as acceptable evidence of insurance, except for claims
involving Registered Mail or COD.
In addition, the Postal Service has made editorial changes to
enhance the clarity of revised section 2.6.1 and section 1.6.3.
The Postal Service adopts the following changes to Mailing
Standards of the United States Postal Service, Domestic Mail Manual
(DMM[supreg]), which is incorporated by reference in the Code of
Federal Regulations. See 39 CFR 111.1.

List of Subjects in 39 CFR Part 111

Administrative practice and procedure, Postal Service.

0
Accordingly, 39 CFR Part 111 is amended as follows:

PART 111--[AMENDED]

0
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, 3622, 3626, 3632, 3633,
and 5001.

0
2. Revise the following sections of Mailing Standards of the United
States Postal Service, Domestic Mail Manual (DMM) as follows:
* * * * *

500 Additional Mailing Services

503 Extra Services

* * * * *

2.0 Registered Mail

* * * * *
[Revise heading of 2.6 as follows:]

2.6 Inquiry on Article With No Declared Value

2.6.1 Who May File

[Revise 2.6.1 to read as follows:]
If postal insurance was purchased, the claim procedures in 609
apply. The procedures in this section apply only to Registered Mail
with no declared value. Only the mailer may file an inquiry on
Registered Mail with no declared value. Only the permit holder may file
an inquiry on Registered Mail with no declared value sent using
merchandise return service.
[Revise the heading of 2.6.2 to read as follows:]

2.6.2 When and How To File

[Revise introductory paragraph to read as follows, and delete items
2.6.2a, 2.6.2b, and 2.6.2c in their entirety:]
The mailer may not file any inquiry until 15 days after the mailing
date of the article. An inquiry may be filed at any Post Office,
classified station, or classified branch, except for an inquiry about
matter registered with merchandise return service, which must be filed
by the permit holder at the Post Office where the permit is held. An
inquiry for Registered Mail with no declared value must be filed by
completing a PS Form 1000, Domestic or International Claim, which may
be obtained from any Post Office or online at www.usps.com/forms/_pdf/ps1000.pdf.
* * * * *

600 Basic Standards for All Mailing Services

* * * * *

609 Filing Indemnity Claims for Loss or Damage

1.0 General Filing Instructions

* * * * *

1.5 Where To File

[Revise 1.5 to read as follows:]
A claim may be filed:
a. Via mail to Domestic Claims, Accounting Services (see 608.8) for
insured mail, Registered Mail, COD, and Express Mail.
b. Online at http://www.usps.com/insuranceclaims/online.htm for
domestic insured mail and Express Mail. Claims for COD and Registered
Mail cannot be filed online.
c. By submitting the required information at any Post Office
facility for mailing to Accounting Services in St. Louis.
* * * * *

1.6 How To File

[Revise 1.6 by deleting existing text and adding 1.6.1, 1.6.2, and
1.6.3 to read as follows:]

1.6.1 Claims Filed by Mail

Customers may file a claim by completing a PS Form 1000, Domestic
or International Claim, and mailing it to Domestic Claims, Accounting
Services (see 608.8). Customers may print PS Form 1000 from http://www.usps.com/insuranceclaims. Evidence of value is required and must
accompany the PS Form 1000. Evidence of insurance must be retained by
the customer until the claim is resolved. For Express Mail COD and
Registered Mail COD claims, the customer must provide both the original

[[Page 16126]]

COD receipt and the Express Mail receipt or the Registered Mail
receipt. Upon written request by the USPS, the customer must submit
proof of damage (see 2.0) for damaged items or missing contents, in
person to a local Post Office for inspection, retention, and
disposition in accordance with the claims decision.

1.6.2 Claims Filed Online

Customers may file a claim online for insured mail and Express Mail
at http://www.usps.com/insuranceclaims/online.htm. Evidence of value is
required and may be submitted as an uploaded file or sent via First-
Class Mail to Domestic Claims, Accounting Services (see 608.8).
Evidence of insurance must be retained by the customer until the claim
is resolved. Upon written request by the USPS, the customer must submit
proof of damage (see 2.0) for damaged items or missing contents, in
person to a local Post Office for inspection, retention, and
disposition in accordance with the claims decision. COD and Registered
Mail claims cannot be filed online.

1.6.3 Claims Filed at the Post Office

A customer may file PS Form 1000 at a local Post Office, which will
then forward the form to Accounting Services in St. Louis. Customers
may print PS Form 1000 from http://www.usps.com/insuranceclaims.
Evidence of value is required and must accompany the PS Form 1000.
Evidence of insurance must be retained by the customer until the claim
is resolved. For Express Mail COD and Registered Mail COD claims, the
customer must provide both the original COD receipt and the Express
Mail receipt or the Registered Mail receipt. Upon written request by
the USPS, the customer must submit proof of damage (see 2.0) for
damaged items or missing contents, in person to a local Post Office for
inspection, retention, and disposition in accordance with the claims
decision.
* * * * *

2.0 Providing Proof of Loss or Damage

2.1 Missing Contents

[Revise the first sentence of 2.1 to read as follows:]
If a claim is filed because some or all of the contents are
missing, the addressee must retain the mailing container, including
wrapping, packaging, and any contents that were received, and must,
upon written request by the USPS, make them available to the local Post
Office for inspection, retention, and disposition in accordance with
the claims decision. * * *

2.2 Proof of Damage

[Revise the first and second sentences of 2.2 to read as follows:]
If the addressee files the claim, the addressee must retain the
damaged article and mailing container, including wrapping, packaging,
and contents, and must, upon written request by the USPS, make them
available for inspection. If the mailer files the claim, Accounting
Services in St. Louis may notify the addressee by letter to present the
damaged article and mailing container, including any wrapping,
packaging, and any other contents received, to a local Post Office for
inspection, retention, and disposition in accordance with the claims
decision. * * *
* * * * *

3.0 Providing Evidence of Insurance and Value

3.1 Evidence of Insurance

[Revise introductory paragraph and item 3.1a to read as follows:]
For a claim involving insured mail, Registered Mail, COD, or
Express Mail, the customer must retain evidence showing that the
particular service was purchased until the claim is resolved. Examples
of acceptable evidence of insurance are:
a. The original mailing receipt issued at the time of mailing
(retail insured mail, Registered Mail, and COD receipts must contain a
USPS postmark). Except for Registered Mail and COD claims, a photocopy
of the original mailing receipt is acceptable. If the original mailing
receipt, or a photocopy of such receipt, is not available, the original
USPS sales receipt listing the mailing receipt number and insurance
amount is acceptable. Customers filing online claims may scan the
receipt and submit as an uploaded file.
* * * * *
[Delete item 3.1d, and redesignate current items 3.1e and 3.1f as
3.1d and 3.1e.]
* * * * *

3.2 Evidence of Value

[Revise introductory paragraph of 3.2 to add online option as
follows:]
The customer (either the mailer or the addressee) must submit
acceptable evidence to establish the cost or value of the article at
the time it was mailed. For claims submitted online, the evidence may
be scanned and uploaded or sent via First-Class Mail to Domestic
Claims, Accounting Services (see 608.8.0). Other evidence may be
requested to help determine an accurate value. Examples of acceptable
evidence are:
* * * * *

6.0 Adjudication of Claims

6.1 Initial Adjudication of Claims

[Revise 6.1 to read as follows:]
Accounting Services in St. Louis adjudicates and determines whether
to uphold a claim in full, uphold a claim in part, or deny a claim in
full. Domestic insurance claims may be filed online through http://www.usps.com/insuranceclaims/online.htm, via mail to Domestic Claims
Accounting Services (see 608.8), or by filing it at a local Post
Office. Claims for COD and Registered Mail cannot be filed online.

6.2 Appealing a Claim Decision

[Revise 6.2 to read as follows:]
A customer may appeal a claim decision by filing a written appeal
to Domestic Claims Appeals, Accounting Services (see 608.8) within 60
days of the date of the original decision. A customer may also appeal a
claim decision online through http://www.usps.com/insuranceclaims/online.htm if the original claim was filed online.

6.3 Final USPS Decision of Claims

[Revise text of 6.3 by adding a new last sentence as follows:]
* * * The customer may file the additional appeal online if the
original appeal was filed online.
* * * * *
We will publish an appropriate amendment to 39 CFR part 111 to
reflect these changes.

Neva R. Watson,
Attorney, Legislative.
[FR Doc. E9-8038 Filed 4-8-09; 8:45 am]
BILLING CODE 7710-12-P