[Federal Register: September 2, 2003 (Volume 68, Number 169)]
[Rules and Regulations]
[Page 52100-52104]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02se03-11]
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POSTAL SERVICE
39 CFR Part 111
Indemnity Claims for Domestic Mail
AGENCY: Postal Service.
ACTION: Final rule.
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SUMMARY: This final rule amends the regulations for indemnity claims as
set forth in the Domestic Mail Manual (DMM) S010, Indemnity Claims and
related provisions of DMM S913, Insured Mail and DMM S921, Collect on
Delivery (COD) Mail. Other than the changes concerning time periods for
filing claims and retention periods for undelivered accountable mail,
the changes clarify existing DMM provisions or codify, in the DMM,
policies not currently set forth in that manual.
DATES: This rule becomes effective on October 1, 2003.
FOR FURTHER INFORMATION CONTACT: Gilbert LeMarier, 202-268-4632.
SUPPLEMENTARY INFORMATION: In a proposed rule published in the Federal
Register on December 6, 2002 [Vol. 67, No. 235, pages 72626-72629], the
Postal Service proposed to revise the procedures in the DMM for filing
indemnity claims, to clarify the standards for payment of claims, and
to incorporate policies not currently set forth in the DMM. One comment
was received. After thorough consideration to the issues raised in this
comment, the Postal Service adopts the proposed revisions with the
modifications discussed below.
The revisions to the procedures for filing claims are made in
conjunction with the redesign of the Postal Service's claim system and
are intended to facilitate the provision of more timely decisions to
Postal Service customers' claims. For example, customers are permitted
to file claims sooner in some circumstances, thereby allowing decisions
to be made closer to the mailing date. In addition, either the sender
or the addressee, whoever is in possession of the original mailing
receipt, will be permitted to file a claim for the complete loss of a
numbered Insured Mail, Registered Mail\TM\, COD, or Express Mail[reg]
article. Under past rules, only the sender was permitted to submit such
claims. The revisions do not change the procedures for unnumbered
Insured Mail articles (insured for $50 or less). As before, only the
sender will be allowed to file a claim for the complete loss of an
unnumbered Insured Mail article.
The revisions also provide further clarification of what is
acceptable evidence of value, codifying current policies into the DMM.
Claims for damage require that the article, packaging, and mailing
container must be presented by the addressee to the Postal Service for
inspection regardless of whether the sender or addressee files the
claim.
The new revisions will also:
(1) Clarify situations under which indemnity will not be paid,
ensuring that current policies are codified in the DMM.
(2) Clarify the time limit in which a customer may forward an
appeal to the Consumer Advocate at Headquarters.
(3) Provide that the original sales receipt from a Postal Service
retail terminal listing the mailing receipt number and insurance amount
is acceptable evidence of insurance when the original mailing receipt
is not available.
(4) Clarify that a mailer of a collect on delivery (COD) article
may not stipulate ``Cash Only.''
(5) Provide that all appeals must be sent directly to Claims
Appeals at the St. Louis Accounting Service Center.
(6) Provide that local adjudication of unnumbered Insured Mail
articles will end with the implementation of the Customer Claims
Response System (CCRS).
Discussion of Comments
A summary of the comments and our analysis of each follows:
1. S010.2.2. The commenter raised two issues regarding the changes
in the time for filing a claim for a lost or damaged COD article.
First, the
[[Page 52101]]
commenter stated that the requirement for waiting 45 days before filing
a claim for a lost COD article is excessive compared to the time frame
for mail receiving other special services.
The Postal Service does not believe the proposed rule should be
changed. Since handling procedures differ depending on the special
service provided, it is inappropriate to establish uniform limits for
filing claims. A COD article may be held at a delivery unit for up to
30 days before being returned to the sender if unclaimed by the
addressee (see DMM, D042.1.7.f). It should also be noted, the Postal
Service proposal reduced the current waiting period for filing a claim
for a lost COD article from 60 days to 45 days. As for other classes of
mail or service, the new time frames took into consideration that the
holding period is 5 days for Express Mail and 15 days for Insured Mail
items or Registered Mail items.
Secondly, the commenter objected to the new requirement that 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
container. The commenter states that if the COD article were not
delivered until the 45th day after mailing, the sender could not file a
damage claim because the 45 days would have already passed.
Although the likelihood of the commenter's hypothetical occurring
is remote, the Postal Service believes there is merit in the concern
raised. Accordingly, the Postal Service will revise the proposed rule
to allow customers to submit damage claims no later than 60 days from
the mailing date.
2. S010.2.5.a. The commenter states that the requirement for the
original postmarked mailing receipt is inappropriate in that not all
receipts will be postmarked.
The Postal Service agrees that it erred in that Express Mail and
point of service (POS) retail terminal imprinted receipts do not
require a postmark. Therefore, the Postal Service withdraws this
proposed rule.
The commenter also states that the requirement for the original
receipt is inappropriate in the case of Registered Mail or Express Mail
service when the Postal Service has a copy of the mailing receipt, and
can validate the claim because the mailer has provided the article
number and date of mailing either from a photocopy or from other
records.
The Postal Service does not believe the rules should be amended to
accommodate this suggestion. The requirement for the original receipt
is to ensure that the proper party is indemnified. It is the customer's
responsibility to provide the proof of insurance evidenced by an
original mailing receipt. Moreover, under existing procedures, mailers
utilizing these services are also permitted to submit the mailing
wrapper as evidence of insurance.
3. S010.2.6.b. The commenter states that the addition of the
phrase, ``For items valued up to $100,'' appears to be a major change.
The Postal Service maintains this revision does not represent a change
in policy but merely codifies current policy. Acceptance of a
customer's statement of value, in lieu of actual evidence of value,
creates an opportunity for abuse, particularly when permitted for
higher-value items.
The commenter also suggests that Postal Service retail clerks
should inform mailers what evidence will be needed to support claims.
Mailers needing such information have access to policies concerning
indemnity claims through the DMM, which is readily available on the
Postal Service's Web site. They can also seek such information from
Postal Service clerks or other Postal Service personnel.
The commenter also asserts that eliminating reimbursement of the
cost of labor from handmade items is too broad. The Postal Service
offers coverage for the value of goods, based on the established value
in the marketplace, whether or not those goods are handmade. However,
if the item mailed is not commonly sold (e.g., a hobby, craft, or
similar handmade item), there is no established value. In that case,
the Postal Service provides compensation for the costs of the materials
used, but not for the time used in making it. The Postal Service will
amend the proposed rule to clarify this policy.
4. S010.2.6.h. The commenter requests clarification of this
proposed rule referring to a printout of a transaction that is made on
the Internet. This comment pertains to the proposal for the provision
of evidence of value for goods obtained through Internet transactions.
These transactions are typically conducted through a Web-based payment
network that offers payment services through a stored value account,
commonly used to buy or sell items at online auctions.
For transactions involving the use of a credit card online or
payment by check, a copy of a credit card statement or canceled check
could serve as evidence of value. The Postal Service will amend the
proposed rule to clarify this policy.
5. S010.2.14.r. The commenter states that this section appears to
require the use of Registered Mail for obtaining insurance on
negotiable items, currency, or bullion, which would be a change in
current policy.
Although the Postal Service generally recommends that customers
send these items as Registered Mail items, it did not intend to
eliminate the option of mailing them as Insured Mail items.
Accordingly, in order to avoid confusion, the Postal Service will
withdraw this proposed change to the DMM.
6. S010.2.14.ae. The commenter objects to the proposed regulation
that event or transportation tickets, received after the event, are not
insured when there is a provable loss because of the delay and the
article was mailed using Express Mail service. With Express Mail's
guaranteed delivery time, if the article is not delivered by that time,
and a provable loss results from the delay in delivery, then, the
commenter argues, the loss should be covered by Postal Service
insurance.
The commenter raised a valid concern and the final rule
incorporates an exception for Express Mail service.
7. S010.2.14.af. The commenter objects to this revision regarding
nonpayable claims for software installed onto computers that have been
lost or damaged. The commenter states that if one paid to have software
loaded on the lost or damaged computer, then the insurance should cover
the cost of having the same software installed on a replacement
computer. In addition, if software, recorded on compact disc or
diskette(s), enclosed with the computer when shipped, is also lost or
damaged, it should be covered by the insurance purchased.
The Postal Service does not believe a change in the rule is
warranted. Software loaded onto personal computers is licensed for use
to the purchaser. Whether on compact disc or diskette(s), the software
provides the purchaser the ability to reinstall the software on a
computer. Software is generally designed to self load when the
appropriate drive is selected with limited prompting or assistance from
an individual. Also, a replacement personal computer typically will
include replacement software. Software on a medium, such as compact
discs or diskettes, recognized as a means to load the software onto a
computer, would be covered for loss or damage dependent upon the amount
of insurance coverage purchased at the time of mailing.
8. S010.2.14.ag. The commenter observes that this proposed rule
does not comply with the provisions stated in S921.1.5, Fee and
Postage, in that it states that if the mailer does not receive the
personal check that was mailed by
[[Page 52102]]
the delivery Post Office, it will be the mailer's responsibility to
obtain a replacement check from the addressee. The fees for COD service
include insurance against failure to receive a postal money order or
the recipient's check.
The Postal Service agrees that the proposed rule is in conflict
with S921.1.5, and, therefore, the proposed rule is withdrawn.
9. S010.2.14.ai. The commenter states that the concept of personal
time should be clarified.
The commenter previously raised this issue in item 3 and it was
addressed by the Postal Service above.
10. S913.2.7. The commenter raises the same issue as identified in
item 2 regarding the requirement that all mailing receipts have a
postmark (round date).
The Postal Service does not believe the proposed rule should be
changed. This revision relates to Insured Mail receipts, PS Form 3813,
Receipt for Domestic Insured Parcel, or PS Form 3813-P, Insured Mail
Receipt. There is an area on each of these receipts annotated either
``Postmark of Mailing Office,'' or ``Postmark Here,'' that clearly
indicates that a postmark (round date) or point of service (POS) retail
terminal imprint, which includes a date, is required. Because these
Postal Service mailing receipts are readily available in retail
lobbies, a postmark or POS retail terminal imprint is required in order
to provide validation that the special service was actually purchased.
Based on the reasons discussed above, the Postal Service hereby
amends the following standards of the DMM, incorporated by reference
into the Code of Federal Regulations. See 39 CFR part 111.
List of Subjects in 39 CFR Part 111
Administrative practice and procedure, Postal Service.
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, 3626, 5001.
0
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
Mail article.
[Revise new item b to read as follows:]
b. Either the sender or addressee, who is in possession of the
original mailing receipt, for the complete loss of a numbered Insured
Mail, Registered Mail, COD, or Express Mail[reg] article.
* * * * *
2.2 When to File
[Revise 2.2 to read as follows:]
A customer must file a claim immediately but no later than 60 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 sooner than No later than
------------------------------------------------------------------------
Bulk Insured................ 21 days............. 180 days
COD......................... 45 days............. 180 days
Express Mail................ 7 days.............. 90 days
Express Mail COD............ 45 days............. 90 days
Insured Mail................ 21 days............. 180 days
Registered Mail............. 15 days............. 180 days
Registered Mail COD......... 45 days............. 180 days
------------------------------------------------------------------------
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 at the following times:
a. After 45 days if article sent First-Class Mail service, 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.
2.3 Where to File
A claim may be filed:
* * * * *
[Insert item c to read as follows:]
c. On the Web at http://www.usps.com.
2.4 How to File
[Revise 2.4 to read as follows:]
A customer may file a claim by presenting evidence of insurance,
evidence of value, proof of damage, and for unnumbered Insured Mail
claims, proof of loss or damage. (Proof of loss is not required for
numbered Insured Mail, Registered Mail, COD, or Express Mail claims.)
If the article was mailed Express Mail COD, the sender must provide
both the original COD and Express Mail receipts. The customer must
complete the applicable spaces on Form 1000.
2.5 Evidence of Insurance
[Revise introductory text to read as follows:]
For a claim involving Insured Mail, Registered Mail, COD, or
Express Mail service, the customer must present any of the following
evidence showing that the particular service was purchased:
* * * * *
[Insert new item d to read as follows:]
d. The original sales receipt from the USPS[reg] listing the
mailing receipt number and insurance amount, if the original mailing
receipt is not available. Reproduced copies of the USPS sales receipt
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
[[Page 52103]]
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 the item was new or used
(only if a sales receipt or invoice is not available). If the article
mailed is a hobby, craft, or similar handmade item, the statement must
include the cost of the materials used in making the item. 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 that offers payment services through a stored value account, 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. The
printout must clearly identify the Web-based payment network provider
through which the Internet transaction was conducted.
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
USPS with the claim. Failure to do so will result in 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 USPS 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 USPS for inspection. Failure to do so will result in
denial of the claim.
2.9 Proof of Loss
[Revise 2.9 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 numbered
Insured Mail, Registered Mail, COD, or Express Mail claims. For proof
of loss, the addressee must provide a letter or statement, dated at
least 21 days after the date that the unnumbered Insured Mail 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.
2.10 Duplicate Claim
[Revise 2.10 to read as follows:]
A customer must file any duplicate claim 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 Insured Mail, Registered Mail, COD, or
Express Mail services in these situations:
* * * * *
[Add items ac through ah to read as follows:]
ac. Mailer refuses to accept delivery of the parcel on return.
ad. Mail not bearing the complete names and addresses of the sender
and addressee, or that is undeliverable as addressed to either the
addressee or sender.
ae. Event or transportation tickets (e.g., concert, theater, sport,
airline, bus, train, etc.) received after the event date. Such items
are insured for loss, but not for delay or receipt after the event date
for which they were purchased unless sent by Express Mail service and
the loss is attributable solely to the failure to meet the guaranteed
delivery standard under the terms and conditions for the Express Mail
offering selected.
af. Software installed onto computers that have been lost or
damaged.
ag. Damaged articles not claimed within 30 days.
ah. Personal time used to make hobby, craft, or similar handmade
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 original mailing receipt.
* * * * *
4.0 ADJUDICATION
4.1 Initial
[Revise 4.1 to read as follows:]
The St. Louis Accounting Service Center (ASC) adjudicates and pays
or disallows all domestic claims except those appealed under 4.3.
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. The customer must
send the appeal directly to Claims Appeals (see G043 for address).
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, the customer may submit an additional appeal within
60 days for final review and decision to the Consumer Advocate, USPS
Headquarters, who may waive the standards in S010 in favor of the
customer.
[Delete 5.0. Sampling process will be discontinued with the
implementation of CCRS.]
* * * * *
S900 Special Postal Services
S910 Security and Accountability
* * * * *
S913 Insured Mail
* * * * *
2.0 MAILING
* * * * *
2.7 Receipt
[Revise 2.7 to read as follows:]
For each Insured Mail article mailed, the mailer receives a USPS
sales receipt and the appropriate postmarked (i.e., round date) Insured
Mail form as follows:
a. Form 3813 when the insurance coverage is $50 or less.
b. Form 3813-P when the insurance coverage is more than $50.
* * * * *
S920 Convenience
S921 Collect on Delivery (COD) Mail
1.0 BASIC INFORMATION
[Insert text after first sentence to read as follows:]
* * * The recipient has the option to pay the COD charges using
either cash or personal check. Only one form of
[[Page 52104]]
payment may be used for a single mailpiece. * * *
* * * * *
3.0 MAILING
* * * * *
3.4 Indelible Ink, Mailer Errors
[Revise 3.4 to read as follows:]
The particulars required on the COD form must be handwritten with
ink, typewritten, or computer-printed. The USPS is not responsible for
errors that a mailer makes in stating the charges to be collected. The
mailer cannot stipulate ``Cash Only'' on the COD form.
* * * * *
We will publish an appropriate amendment to 39 CFR 111.3 to reflect
these changes.
Stanley F. Mires,
Chief Counsel, Legislative.
[FR Doc. 03-22047 Filed 8-29-03; 8:45 am]
BILLING CODE 7710-12-P