Insurance Claims Process Changes, 16124-16126 [E9-8038]

Agencies

• Postal Service

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


=======================================================================
-----------------------------------------------------------------------

POSTAL SERVICE

39 CFR Part 111


Insurance Claims Process Changes

AGENCY: Postal Service.TM

ACTION: Final rule.

-----------------------------------------------------------------------

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 OfficeTM 
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 MailTM 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 https://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 https://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 https://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 https://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 https://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 https://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