[Federal Register: April 29, 2004 (Volume 69, Number 83)]
[Rules and Regulations]
[Page 23436-23439]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29ap04-4]
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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: May 1, 2004.
FOR FURTHER INFORMATION CONTACT: Jim Pretlow, 202-268-5389
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 Domestic Mail
Manual (DMM) for filing indemnity claims, to clarify the standards for
payment of claims, and to incorporate policies not currently set forth
in the DMM. (Note: Two minor procedural changes contained in the
proposed rule have been eliminated in the final rule: elimination of
local adjudication and the ability to enter claims via the web. Also,
the word ``sender'' has been changed to ``mailer''). One comment was
received. After thorough consideration of 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 mailer
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, collect on delivery (COD), or
Express Mail article. Under past rules, only the mailer 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 mailer 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 and mailing container,
including any wrapping, packaging, and any other contents that were
received must be presented by the addressee to the Postal Service for
inspection regardless of whether the mailer 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) 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.
(3) Provide that initial appeals must be sent directly to Claims
Appeals at the St. Louis Accounting Service Center (ASC), except
appeals for unnumbered Insured Mail articles, which must be mailed to
the Post OfficeTM where the claim was filed.
(4) Clarify the time limit in which a customer may forward a final
appeal to the Consumer Advocate at Headquarters.
(5) Clarify that a mailer of a COD article may not stipulate ``Cash
Only.''
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 commenter stated that the requirement for waiting 45 days
before filing a claim for a lost COD article is excessive compared to
the timeframe 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 mailer 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 items and 15 days for Insured
Mail 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 date of
mailing 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 mailer could not file a
damage claim because the 45 days would have already passed.
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
[[Page 23437]]
terminal imprinted receipts do not require a postmark. Therefore, the
original postmarked receipt will be required for Insured Mail,
Registered Mail, and COD items only. This is due to the fact that
anyone can pick up a receipt in a Post Office lobby for Insured Mail or
Registered Mail items and get a COD tag over the counter.
The commenter also states that the requirement for the original
receipt is inappropriate in the case of Registered Mail or Express Mail
items 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.
The Postal Service trains sales and services associates to be able to
provide this information to customers. In addition, the Postal Service
has taken steps to make this information available through a wide
variety of public sources. This information is printed on the back of
the mailing receipts. Customers may call our toll-free number for
information at 1-800-ASK-USPS. The same information is also contained
in the DMM, which can be accessed through http://pe.usps.gov.
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,
where 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 service 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
service'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 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 Mail 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 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
[[Page 23438]]
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 (CFR). 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 mailer, for the complete loss of an unnumbered Insured
Mail article.
[Revise new item b to read as follows:]
b. Either the mailer 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 article.
* * * * *
2.2 When To File
[Revise 2.2 to read as follows:]
A customer should file a claim immediately, but no later than 60
days from the date of mailing, 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
(in days) (in days)
------------------------------------------------------------------------
Insured Mail............................ 21 180
COD..................................... 45 180
Registered Mail......................... 15 180
Registered COD.......................... 45 180
Express Mail............................ 7 90
Express Mail COD........................ 45 90
APO/FPO Insured (First-Class Mail, SAM, 45 180
PAL, or COD)...........................
APO/FPO Insured (Surface Only).......... 75 180
------------------------------------------------------------------------
* * * * *
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 only, proof of loss. (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 or Registered Mail COD, the
claimant must provide both the original COD receipt with either the
Express Mail or the Registered Mail receipt. The customer must complete
the applicable spaces on PS Form 1000.
2.5 Evidence of Insurance
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:
* * * * *
[Revise item a to read as follows:]
a. The original mailing receipt issued at the time of mailing
(Insured Mail, Registered Mail, and COD receipts must contain a USPS
postmark). Reproduced copies are not acceptable.
* * * * *
[Insert item d to read as follows:]
d. The original sales receipt from the USPS 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
[Revise introductory text to read 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. (Other evidence may be requested to help
determine an accurate value.) Examples of acceptable evidence are:
* * * * *
Revise item a to read as follows:
a. Sales receipt, invoice or bill of sale, or statement of value
from a reputable dealer.
[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. For
Internet purchases, a copy of the front and back of the canceled check,
money order, or a copy of the credit card billing statement is
required.
[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,
provide 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
[[Page 23439]]
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 mailing container, including
any wrapping, packaging, and any contents that were received, 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
damaged article and mailing container, including any wrapping,
packaging, and any other contents that were received, to the USPS for
inspection. If the mailer files the claim, the St. Louis ASC will
notify the addressee by letter to present the damaged article and
mailing container, including any wrapping, packaging, and any other
contents that were received, 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:]
The mailer must provide proof of loss for unnumbered Insured Mail
only. Proof of loss is not required for numbered Insured Mail,
Registered Mail, COD, or Express Mail claims. The mailer must present
written and signed documentation from the addressee (such as a letter)
dated at least 21 days from the date of mailing, stating the addressee
did not receive the article.
[Delete items a, b and c.]
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 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 mailer
and addressee, or is undeliverable as addressed to either the addressee
or mailer.
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 and the loss
is attributable solely due 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 the prescribed time limits
set forth in Postal Operations Manual 146.3.
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 mailer and the addressee both claim insurance and cannot
agree on which one should receive the payment, any payment due is made
to the mailer unless the claim has already been paid to the addressee
upon presentation of the original mailing receipt.
* * * * *
4.0 ADJUDICATION
* * * * *
4.2 Appeal
[Revise the first sentence of 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 Mail article, the customer must send the appeal
directly to Claims Appeals at the St. Louis ASC (see G043 for address).
For an unnumbered Insured Mail 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 Appeals 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, the customer may submit an additional appeal within
60 days for final review and decision to the Consumer Advocate, USPS
Headquarters (see G043 for address), 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
1.1 Description
[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 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. 04-9750 Filed 4-28-04; 8:45 am]
BILLING CODE 7710-12-P