Insurance Claims Process Changes, 4727-4729 [E9-1645]

Agencies

• Postal Service

[Federal Register Volume 74, Number 16 (Tuesday, January 27, 2009)]
[Proposed Rules]
[Pages 4727-4729]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-1645]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 74, No. 16 / Tuesday, January 27, 2009 / 
Proposed Rules

[[Page 4727]]


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POSTAL SERVICE

39 CFR Part 111


Insurance Claims Process Changes

AGENCY: Postal Service\TM\.

ACTION: Proposed rule.

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SUMMARY: The Postal Service proposes to revise 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: Submit comments on or before February 26, 2009.

ADDRESSES: Address all comments to the Manager, Mailing Standards, U.S. 
Postal Service, Room 3436, 475 L'Enfant Plaza, SW., Washington, DC 
20260-3436. Copies of all comments will be available for inspection and 
photocopying between 9 a.m. and 4 p.m., Monday through Friday in the 
USPS Headquarters Library on the 11th Floor at the above address.

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

SUPPLEMENTARY INFORMATION: The Postal Service is proposing to revise 
its procedures for processing and adjudicating domestic mail insurance 
claims in order to streamline the claims process and to provide its 
customers with more consistent service. It proposes to do this by 
making its online claims processing service available to customers who 
purchase domestic insurance through any retail channel--i.e., usps.com, 
Automated Postal Center[supreg] kiosks, local Post Office\TM\ 
facilities, or authorized PC Postage[supreg] providers. Currently, the 
online process can only be used by customers who purchase postage and 
insurance through Click-N-Ship[supreg] or eBay[supreg]. In addition, 
the proposal would allow Express Mail[supreg] customers to file online 
claims, even if no additional insurance was purchased. The proposal 
would also allow Collect on Delivery (COD) and Registered Mail\TM\ 
claims to be filed by mail or at a Post Office; however, they could not 
be filed online.
    The proposal would also permit a customer to file a claim by 
downloading a form from usps.com and mailing it directly to Postal 
Service Accounting Services in St. Louis, MO. Customers also could 
continue to file claim forms at a local Post Office.
    Under the proposal, local Post Office facilities would no longer 
adjudicate insurance claims. To ensure consistency and service quality, 
all claims would be adjudicated by Accounting Services.
    The proposal also would change the current damaged goods inspection 
policy for domestic claims. The proposal would require a customer to 
retain her or his damaged article and container, including packaging, 
wrapping, and any other contents received, until the claim is fully 
resolved. Customers would no longer be 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 would be required to turn the 
materials over to their local Post Office for inspection, retention, 
and disposition in accordance with the claims decision.
    This proposal also would update the Registered Mail section by 
changing the term uninsured Registered Mail to Registered Mail with no 
declared value to reflect current policy.
    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 proposed revision of the Domestic Mail Manual, 
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.

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

    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. For matter registered with no 
declared value but with merchandise return service, only the permit 
holder may file an inquiry.

[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:]

    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

* * * * *

[[Page 4728]]

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 608.8.0 
for address) for insured mail, Registered Mail, COD, and Express Mail.
    b. Online at 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 and 1.6.2 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 608.8.0 for address). Customers may print PS Form 1000 
from 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.

1.6.2 Claims Filed Online

    Customers may file a claim online for insured mail and Express Mail 
at 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 608.8.0 for 
address). 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 a claim form, 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 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). If the original mailing receipt is not available, the 
original USPS sales receipt listing the mailing receipt number and 
insurance amount is acceptable. Reproduced copies are not acceptable 
for Registered Mail and COD claims. 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 for address). (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 
www.usps.com/insuranceclaims/online.htm, via mail to Domestic Claims 
Accounting Services (see 608.8 for address), or by filing it at a local 
Post Office. Claims for COD and Registered Mail cannot be filed online.

[[Page 4729]]

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 for address) 
within 60 days of the date of the original decision. A customer may 
also appeal a claim decision online through 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 111 to reflect 
these changes if our proposal is adopted.

Neva R. Watson,
Attorney, Legislative.
[FR Doc. E9-1645 Filed 1-26-09; 8:45 am]
BILLING CODE 7710-12-P