
148 Revenue Deficiency

148.1 General.
The term "revenue deficiency" refers to insufficient payment by a mailer or
other postal customer of postage, fees, or box rent.  For example, a
deficiency may result from an incorrect setting of a postage meter by a post
office employee, from an impermissible enclosure included in a second-class
publication, or from sending mail matter at a rate lower than the specified
rate.  Revenue deficiencies are usually disclosed during the course of a
postal inspector's audit or local financial examination.  The postmaster
renders the initial ruling to the customer.  The ruling cites the amount of
the deficiency and the circumstances involved.

148.2 Appeal of Ruling.
Except as provided in 625.526, a mailer may appeal a ruling
assessing a revenue deficiency by filing a written appeal, within 15 days of
receipt of the ruling, with the general manager, rates and classification
center (RCC), for the entry post office.  If the deficiency was first assessed
by the general manager, RCC, or by the general manager of any division in the
Office of Classification and Rates Administration, the mailer may appeal it in
writing (within 15 days of receipt of the ruling) to the director, Office of
Classification and Rates Administration, U.S. Postal Service (for address, see
Address List in Appendices).  The mailer may be asked to furnish
additional information or documents to support the appeal.  Failure to do so
within 30 days of such a request is grounds for denying an appeal.  A final
decision is made as soon as possible after receipt of the appeal and necessary
supporting documents.

149 Indemnity Claims

149.1 Special Services With Indemnity Provisions.
Indemnity claims may be filed for the loss, damage, or rifling of insured,
COD, registered, or Express Mail (see 149.5 for Express Mail
provisions).  (See the International Mail Manual for international
insured and registered mail indemnity claims.)

149.2 General Instructions for Filing Claims on Insured, COD, and
Registered Mail

149.21 Who May File.
A claim for complete loss (wrapper and contents) of an insured article may
be filed by the mailer or addressee.  A claim for complete loss (wrapper and
contents) of a COD or registered article may only be filed by the mailer.  All
claims for complete loss of contents, partial loss, or damage may be filed by
the mailer or addressee.

149.22 When to File

149.221 Time Limits

a. Insured, Registered, and COD Claims.
Insured, registered, and COD claims must be filed within 1 year of the date
the article was mailed.  Customers who file a follow-up claim (duplicate,
inquiry, etc.) must wait at least 45 days from the first claim date, but may
not file later than 18 months from the date the article was mailed.

b. Express Mail COD Claims.
Express Mail COD Claims must be filed within 90 days from the date of
mailing.  Customers who file a follow-up claim (duplicate, inquiry, etc.) must
wait at least 45 days from the first claim date, but may not file later than 6
months from the date the article was mailed.

c. Appeals of Postal Service Claim Decisions.
Appeals of Postal Service claim decisions must be filed within 3 months of
the date of the decision.

149.222 Loss Claims

a. Insured.
For insured articles, a claim may not be filed until 30 days after the date
of mailing, except as specified in 149.222c.

b. COD.
For COD articles, a claim may not be filed until 45 days after the date of
mailing, except as specified in 149.222c.

c. Exceptions.
Claims for insured and COD articles originating at or addressed to post
offices outside the contiguous United States (including insured articles to
APO and FPO addresses) may not be filed: (1) until 45 days after the date of
mailing for articles sent by First-Class, SAM, or PAL mail; and (2) until 75
days after the date of mailing for parcels sent by surface ocean
transportation.

d. Registered.
For registered articles, a claim may not be filed until 15 days after the
date of mailing.

149.223 Complete or Partial Loss of Contents, Damage, or Rifling Claims.
Claims for complete or partial loss of contents, damage, or alleged rifling
must be filed immediately.

149.23 Copies of Delivery Records.
Customers may obtain copies of delivery records on numbered insured, COD,
registered, and Express Mail shipments by sending a request to the post office
of address.  The request must include all mailing information such as article
number, date mailed, names and addresses of mailer and addressee, and type of
mailing (insured, COD, etc.).  The fee is $6 for each copy of the delivery
record requested and must be sent with the request.

149.24 Required Information

149.241 Evidence of Insurance, COD, or Registration.
The customer must submit evidence that the article was an insured, COD, or
registered mailing.  Acceptable evidence includes either

a.
the original mailing receipt issued at the time of mailing (reproduced
copies are not acceptable); or

b.
the wrapper, which must have the names and addresses of both the mailer and
addressee and the appropriate mail endorsement indicating Postal Service
handling as insured, COD, or registered mail.

Note: Indemnity may be limited to $100 for insured, $50 for COD mail,
and $100 for registered mail if only the wrapper is submitted as evidence.

149.242 Evidence of Value.
The customer must submit evidence of value for all claims.  All statements
must be dated and signed by the maker.  Acceptable evidence includes the
following:

a.
Sales receipt.

b.
Invoice.

c.
Statement of value from a reputable dealer.

d.
Catalog value of a similar article.

e.
Statement describing the article lost or damaged, including where
purchased, date, amount, and whether the article was new or used.  If
handmade, the price of material used and labor must be stated.  The items must
be described in sufficient detail for the postal data center (PDC) to
determine that the value claimed is accurate.

f.
Paid repair bills, estimates of repair costs, or appraisals may be used
instead of estimates of value in the case of claims for partial damage. When
there is a possibility that the cost of repair exceeds actual value, other
evidence of value may be required.

g.
Statement of cost for duplication and premium for surety bond when the
claim is for loss of securities or certificates of stock.

149.25 Payable and Nonpayable Claims

149.251 Payable Claims.
Subject to 149.252, insurance for loss or damage to registered,
insured, or COD mail within the amount covered by the fee paid is payable for
the following:

a.
Lost articles based on their actual value at the time and place of mailing.
 Depreciation is deducted for used items.

b.
Cost of repairing a damaged article or replacing a totally damaged article,
not exceeding actual value of the article.

c.
Remittance due on a COD parcel for which no remittance has been received by
the mailer.

d.
Death of bees, crickets, or baby poultry due to physical damage to the
package or delay for which the Postal Service is responsible.  In the absence
of definite evidence showing responsibility for death of bees, crickets, or
baby poultry, the Postal Service is presumed to be at fault if 10% or more are
dead on delivery, and indemnity is paid for all dead bees, crickets, or
poultry; otherwise, the Postal Service is not presumed to be at fault (see
149.252k, 149.252, and 124.63).

e.
Costs incurred in duplicating or obtaining documents, or their original
cost if they cannot be duplicated.  These costs include the following:

(1)
Cost of duplicating service.

(2)
Notary fees.

(3)
Bonding fees for replacement of stock or bond certificates.

(4)
Reasonable attorney's fees, if actually required to replace the lost or
damaged documents.

(5)
Other direct and necessary expenses or costs, as determined by the Postal
Service.

f.
The extra cost of gift wrapping, if the gift-wrapped article was enclosed
in another container for handling in the mail.

g.
Cost of outer container, if specially designed and constructed for goods
sent.

h.
The established fair market value of stamps and coins having philatelic or
numismatic value, as determined by a recognized dealer of stamps or coins.

i.
Federal, state, or city sales tax paid on articles which are lost or
totally damaged.

j.
Postage (not fee) paid for sending damaged articles for repair.  The Postal
Service must be used for this purpose.  Other reasonable transportation
charges may be included if postal service is not available.

k.
Photographic film and negatives are compensated for only at the cost of the
film stock.  No indemnity is paid for the content of the film nor for the
photographer's time and expenses in taking the photographs.

149.252 Nonpayable Claims.
Payment is not made in excess of the actual value of the article or in
excess of the maximum amount covered by the fee paid.  Indemnity is not paid
in the following situations:

a.
The article was not rightfully in the mail.  This includes parcels and COD
articles sent to addressees without their consent for purposes of sale or on
approval.

b.
The claim is filed more than 1 year from the date the article was mailed,
the duplicate claim was filed later than 18 months from the date the article
was mailed, or the appeal of the Postal Service decision is not filed within 3
months of the date of the original decision.

c.
Evidence of insurance coverage has not been presented.

d.
Loss, rifling, or damage occurred after delivery by the Postal Service.

e.
The claim is based on sentimental loss rather than actual value.

f.
The claim is for replacement value, and such value exceeds the actual value
at the time and place of mailing.

g.
The loss resulted from delay of the mail.

h.
The claim is for consequential loss rather than for the article itself.

i.
The contents froze, melted, spoiled, or deteriorated.

j.
The damage consisted of abrasion, scarring, or scraping of suitcases,
handbags, and similar articles which were not properly wrapped for protection.

k.
The death of baby poultry was due to shipment to points where delivery
could not be made within 72 hours from the time of hatching.

l.
The death of honeybees, crickets, and harmless live animals was not the
fault of the Postal Service (see 124.63).

m.
A failure on the part of the second party (the addressee if the claim is
filed by the mailer, or the mailer if the claim is filed by the addressee) to
fully cooperate in the completion of the claim.

n.
The article is so fragile as to prevent its safe carriage in the mail,
regardless of packaging.

o.
Personal compensation for time required to replace lost documents.

p.
Damaged articles, mailing container, and packaging were not submitted to
the Postal Service for inspection.

q.
The claim was submitted after the article had been transported outside of
the mail by other carriers or by private conveyance.

r.
The damage was caused by shock, transportation environment, or x-ray, and
no evidence of damage to the mailing container exists.

s.
The container and packaging were not submitted to the Postal Service for
inspection on a partial or complete loss of contents claim.

t.
The mail article or part or all of its contents were officially seized
while in the military postal system overseas.

149.26 Replacement Shipments.
If a replacement shipment has been sent to a customer to replace the
original article lost, "Replacement Shipment" must be indicated on the claim
and a copy of the invoice evidencing the replacement must be attached to the
claim form.

149.27 Estimates, Appraisals, and Depreciation

149.271
If necessary, the article may be returned to the customer by the Postal
Service so that the customer may obtain an appraisal or estimate.  Postal
Service personnel must give and take receipts for damaged articles on Form
3831.  The condition of the article must be noted on the receipt.

149.272
The Postal Service depreciates a used article either lost or damaged based
on the life expectancy of the article.

149.28 Processing Claims

149.281 Post Offices, Classified Stations, and Branches.
Post Offices, classified stations, and branches must do the following:

a.
Accept and process registered, insured, and COD claims upon the
presentation of the required information.

b.
Assist customers in the preparation of claim form.

c.
Complete post office portion of the claim.

d.
Route completed forms in accordance with the type of claim being processed.

149.282 Quarterly Review.
The manager, mailing requirements, or the consumer affairs representative
(CAR) where the function has been assigned to the CAR, coordinates reviews of
claims functions at the main office, stations, branches, and associate
offices.  The review must be conducted quarterly and whenever evidence
indicates that delinquent forms exist at any location accepting claims.
Conduct the review as follows:

a.
Count the claim forms, duplicate claims, Forms 1510, Forms 1510-A, and
Forms 3811-A.  Note the dates that the forms were received in the unit.  Both
149.343b and 149.441b(5) require that delivery information
be furnished within 5 days of receipt of the request.  Requests not processed
within 5 days are delinquent.  Determine the percentage of delinquent requests.

b.
Check the COD file, comparing dates of money orders with dates of delivery,
and note any delays.

c.
Check the files of Forms 3849 for proper completion.  Compare date of
receipt and date of return of each COD article to determine whether held
beyond the maximum 30-day retention period.  Note any irregularities.

d.
Determine the accessibility of delivery records to all employees who
conduct searches.

e.
Select a representative sample of delivery units each quarter.  Check
on-hand COD articles, noting the dates when received in the unit.  Articles
retained more than 30 days must be recorded as irregularities.

f.
Discuss your findings with the postmaster, station/branch manager, or other
supervisor who manages the claims and inquiry function.  Jointly develop a
plan of action to correct any irregularities.

g.
Provide a summary report for each site to the field director, marketing and
communications, as well as the employee in charge of the unit that was
reviewed.  The report must list all noted irregularities and delinquent forms.
 Determine the cause of noted irregularities and delinquent forms and include
a summary of the jointly developed plan of corrective action to be taken
within a specified time.  The field director, marketing and communications, is
responsible for ensuring that the plan is immediately implemented.  Whenever
an accumulation of delinquent forms exists, it must be corrected immediately.

h.
Conduct the follow-up review after 15 days to determine the effectiveness
of the action taken.  If no irregularities are detected, schedule the next
review semiannually.

149.283 St. Louis PDC/Office of Classification and Rates Administration.
The St. Louis PDC (or the Office of Classification and Rates
Administration, USPS Headquarters, at its discretion) adjudicates and pays or
disallows all claims.

149.284 Appeals.
Appeals are filed with the Director of the St. Louis PDC.  If the Director
of the PDC sustains the denial, the appeal may be forwarded to the Director,
Office of Classification and Rates Administration, USPS Headquarters, for a
final review and adjudication (see 149.91).

149.3 Insured and COD Claims

149.31 How to File

149.311 Required Forms.
A customer may file a claim at any post office, classified branch, or
station, Form 3812, dated May 1980 or later, must be used to request payment
for the loss or damage of insured mail.  A claim has not been filed until a
completed Form 3812 has been accepted by the Postal Service.  The form is a
three-part snap-out set which includes one copy of Form 1510-A and one copy of
Form 3841.  Do not complete a separate Form 1510 or Form 3841 for insured or
COD claims.  Claims or inquiries involving registered COD mail must be
submitted on Form 565, in accordance with 149.4.

149.312 Evidence of Loss or Damage

a.  Complete Loss Claims Filed by the Mailer.
All mailers filing claims for complete loss of insured mail must provide
proof that a loss has actually occurred before post offices accept a claim for
indemnity.  This proof may be supplied by any one of the following methods:

(1)
The mailer may obtain Form 3812 from any post office.  The mailer must then
complete this claim form and mail it to the addressee.  Postal Service
personnel must not mail the claim form for the mailer, but assistance in
completing the form may be provided upon request.  The addressee must complete
items 15 and 19 on the claim form and return it to the mailer.  If the
addressee has signed the claim form and indicated the article was not received
30 days or more after the date of mailing, the mailer may then take the claim
form, along with the original mailing receipt, to a post office and file the
claim.

(2)
If the mailer is unable to obtain the cooperation of the addressee in
signing the Form 3812 for numbered insured articles or, if he or she prefers,
the mailer may send a check or money order for $6 to the post office of
address and request a copy of the delivery record, provided 30 days or more
have elapsed since the date of mailing.  Such requests for delivery records
must contain the date the article was mailed, the insurance number, and the
complete name and address of the mailer and addressee (see 149.23).

(3)
If the mailer receives a notice from the post office of address that a
delivery record is not on file, the mailer may take this notice and original
mailing receipt to any post office and file a claim for loss.  Post offices
accepting such claims must attach a copy of the notice from the addressee post
office to the Form 3812 claim set and send them to the St. Louis PDC for
adjudication.

(4)
If the mailer has written and signed documentation (such as a letter dated
at least 30 days after the date of mailing) from the addressee stating the
addressee did not receive the article, the mailer may take that documentation
to a post office, along with the original mailing receipt, and file a claim.
The Postal Service employee must attach the documentation, or a copy of it, to
the claim form.

b.  Complete Loss Claims Filed by the Addressee.
An addressee may file a claim for the loss of an insured article, if the
addressee presents the following to the post office accepting the claim:

(1)
The original mailing receipt.  Copies of original mailing receipts are not
acceptable.

(2)
A Form 3812 which has been signed by the mailer and on which the mailer has
designated the payee.

(3)
Evidence of value.

Note: If the addressee does not have all the above information, only
the mailer is allowed to file a claim for loss of an insured article.

c. Complete or Partial Loss of Contents.
For complete or partial loss of contents claims, the container and
packaging must be presented to the Postal Service for inspection when the
claim is filed.  Exception:  The claimant may submit Form 673 or Form 3760
(which was received from the Postal Service) to file a claim.

d. Damage Claims.
If the addressee files the damage claim, he or she must present the article
with the mailing container and packaging to the Postal Service for inspection.
 If the mailer files the claim for partial loss or damage, the mailer's post
office sends the addressee Form 3862.  The addressee then must present the
mailing container and packaging to the Postal Service for inspection.

149.313 How to Complete Form 3812

a. Customer Action.
Type or print legibly with a ballpoint pen (press hard).  Fill out items
1-19 and the lower portion (marked "Postal Insurance Claim Identification") of
the form.  If you need help, the accepting postal employee may assist you.
Items 1-19 should be completed as follows:

Item 1.
  Check appropriate block indicating reason for claim.

(1) Complete Loss.
Article not delivered.

(2) Complete Loss of Contents.
Article or wrapper delivered, all contents missing.

(3) Partial Loss.
Article delivered, some contents missing.

(4) Complete Damage.
Article delivered, all contents damaged.

(5) Partial Damage.
Article delivered, some contents damaged.

(6) No COD Remittance.
Mailer did not receive money order for article mailed.

Item 2.
Indicate type of mail and insured or COD number, if appropriate.

Item 3.
Indicate special delivery, if applicable.

Item 4.
Indicate use of Priority (First-Class zone-rated) Mail, if applicable.

Item 5.
Enter city, state, and ZIP Code of mailing post office (not necessarily the
post office where the claim is being filed).  If the package was mailed at a
station or branch, use the appropriate ZIP Code.

Item 6.
Enter city, state, and ZIP Code of post office of address.

Item 7.
Enter the date the package was mailed.  (Six digits: month, day, and year;
i.e., January 28, 1991:  01-28-91.)

Item 8.
Enter the date the claim is being filed.  (Six digits: month, day, and
year.)

Item 9.
Enter the amount of postage paid, including special fees such as special
delivery or special handling.

Item 10.
Enter amount of insurance fee paid.

Items 11 and 12.
Names and addresses of mailer and addressee.  The mailer must indicate the
payee by checking the payee block in either item 11 or 12.  The name of the
payee indicated in items 11 or 12 must agree with the payee shown in the "Mail
Check To" portion of the identification slip.

Item 13.
Describe the articles lost or damaged.  Indicate the purchase price, the
approximate year of purchase, whether the article was new or used or, if
handmade, the price of materials used and labor expended.  Describe the items
in sufficient detail for the PDC to determine that the value claimed is not
excessive.  If necessary, attach a supplementary sheet of paper to the claim
form.

Item 14.
Enter the total amount claimed, excluding postage.

Item 15. Completed by Addressee Only.
Indicate whether the article was received or refused.

Item 16. Completed by Addressee Only.
Complete for COD mailings only.

Item 17.
Complete only if package was commercially insured. Include policy number,
name and address of insurance company, and amount of deductible, if
appropriate.

Item 18.
If the mailer is filing the claim, the mailer must sign, date, and enter
his or her telephone number in the appropriate block.  If the claim is being
filed by a business firm, the firm name should be entered in the signature
block and the firm's representative must sign the block labeled "BY."

Item 19.
If the addressee is filing the claim, the addressee must sign, date, and
enter his or her telephone number in the appropriate blocks.  If the claim is
being filed by a business firm, the firm name should be entered in the
signature block and the firm's representative must sign the block labeled "BY."

b. Accepting Employee Action

(1)
Type or print legibly with a ballpoint pen (press hard).

(2)
Complete items 1-10, if the customer has not already done so.  (See
149.313a for detailed instructions.)

(3)
Verify entries in items 2-6 and 8-10 by comparing information with that
which is on the original mailing receipt.

(4)
If necessary, assist the claimant, to the extent possible, in completing
items 11-14 and items 17, 18, or 19.

(5)
Complete items 20-22 as follows.  Item 20: date-stamp with the signature of
postal employee accepting the claim.  Item 21: check the appropriate block to
indicate evidence of insurance; endorse the original insurance receipt and/or
wrapper "Claim Filed," date-stamp, and initial it; return it to the customer
and instruct him or her to keep it until the claim is settled.  Item 22: Fill
in location of the damaged article.

(a)
If the customer has the damaged article, he or she must show it and the
packaging to the accepting postal employee to verify actual damage.  If the
mailer files the claim for partial loss or damage, the mailer's post office
sends the addressee Form 3862.  The addressee then must present the mailing
container and packaging to the Postal Service for inspection.

(b)
If the claim is for partial damage, check the appropriate block to indicate
the location of the article.  Under no circumstances should the accepting
postal employee arrange to have the article repaired.

(c)
If the claim is for complete damage, disposition of the article is at the
option of the Postal Service (see 149.7).

(6)
Review the Form 3812 before the customer leaves to ensure that:

(a)
Other identification (invoice numbers, etc.) and name and address of payee,
as designated by claimant, is on the lower portion of the form.

(b)
The mailer has designated the payee (for exceptions, see
149.333e(2)) and signed the claim form.

(c)
All necessary supporting documents (bill of sale, invoice, repair bill or
estimate of repairs, and evidence of loss) are attached to the back of the
claim form.

149.32 Disposition of Damaged Article.
See 149.7.

149.33 Processing Form 3812

149.331 Accepting Employee.
The accepting employee must forward the partially completed claim form,
with the available supporting documentation, to

a.
the claims and inquiry section, if one exists, or

b.
the employee in the post office who has been designated to handle insurance
claims.

149.332 Final Preparation.
Complete final preparation of the claim form at the accepting post office
as follows:

a.
Enter the claim number.  The claim number is composed of the 6-digit post
office finance number and a 3-digit sequential number beginning with 001 and
continuing through 999.  For APOs, the claim number is the number (7) plus the
unit's ZIP Code.  For FPOs, the claim number is the number (7) plus the unit's
5-digit UIC number.  Both APOs and FPOs follow this with a 3-digit sequential
number beginning with 001 and continuing through 999.  When the total claims
initiated reaches 999, begin again with 001.

b.
Check the appropriate box in the "Forward To" block to indicate to whom the
claim form is to be forwarded.

c.
Detach and file copy 3 of the claim form set (Form 3841) alphabetically by
mailer's name.

149.333 Forwarding Claims

a. Loss of Numbered Insured Articles by the Mailer.
If the addressee has signed the Form 3812 indicating nonreceipt of the
article, or there is written documentation that a loss has occurred, attach a
Form 3861-A and send the entire claim form, with the evidence of loss
attached, to the post office of address.  Do not remove the copy of Form
1510-A from the claim set.  Claim form sets for lost numbered insured articles
being forwarded to FPOs must include the unit or ship designation in the
mailing address.

b. Loss of Numbered Insured Articles Filed by the Addressee

(1)
If the article was addressed for delivery at the same post office where the
claim is being filed, search your delivery records and annotate your findings
in item 23 on Form 3812, and send the claim form set to the St. Louis Postal
Data Center.

(2)
If the article was addressed for delivery at a post office other than the
one where the claim is being filed, attach a Form 3861-A, and send the claim
form set to the post office of address for search of delivery records.

c. Loss of Unnumbered Insured Articles or Numbered Loss Claims with the
Postal Service Notification the Article Was Not Delivered.
Send Form 3812, with Form 1510-A attached, directly to the St. Louis PDC
for adjudication.  Make sure the evidence of loss, or a copy of it,
accompanies the claim.

d. COD or Damaged Insured Articles

(1)
Select the appropriate form letter of instructions and attach it to the
front of the claim form set as follows:

(a)
Form 3861.

(b)
Form 3862.

(c)
Form 3863.

(2)
Prepare a preaddressed penalty reply envelope as follows:

DIRECTOR
POSTAL DATA CENTER
US POSTAL SERVICE
PO BOX 80143
ST LOUIS MO  63180-9143

(3)
Attach the envelope to the claim form set.  Send COD claims for loss to the
addressee and the copy of Form 1510-A to the post office of address for search
of delivery records.  Send damage claims to the second customer (either the
mailer or addressee).

e. Exceptional Damage Claims

(1)
If the claimant has possession of the damaged article and submits proof
that it was received by the addressee in a damaged condition, or that it was
returned from the office of address as undeliverable, do not send the claim
form to the addressee.  Forward it directly to the St. Louis PDC for
adjudication.

(2)
If the addressee has paid for repair to a partially damaged article, mail
the claim directly to the St. Louis PDC without the statement or signature of
the mailer, provided you can determine from the insurance endorsement on the
wrapper that the insurance fee paid was sufficient to have purchased insurance
to cover the cost of repairs.  Otherwise, forward the claim to the mailer for
his or her evidence of insurance in accordance with 149.333d.

149.34 Additional Post Office Responsibilities

149.341 General Assistance to Customer

a. Claim Form Initiated at Another Office.
If a customer comes into your office with any one of the form letters
mentioned in 149.333d and a partially completed Form 3812, follow
these procedures:

(1)
Read carefully the form letter which transmitted directions to the customer.

(2)
Assist the customer in completing his or her portion of the Form 3812 in
accordance with the directions in the form letter.

(3)
Place the completed Form 3812 and all other material which the customer has
received in the preaddressed PDC envelope and mail.

b. Verifying Insurance Receipt.
When the addressee has filed a damage claim and the amount of indemnity
claimed exceeds $50 on insured claims or $10 on COD claims, the mailer must
present his or her original insurance receipt for verification.  Verification
may be accomplished at any post office, classified station, or branch.
Reproductions of receipts are not acceptable.  Accept the insurance receipt,
the partially completed Form 3812, and the form letter of instructions from
the mailer.  Follow these procedures:

(1)
Read carefully the form letter which transmitted directions to the customer.

(2)
Complete items 9 and 10 on Form 3812 (see 149.313a).

(3)
Assist the customer in completing his or her portion of the Form 3812 in
accordance with the directions in the form letter.

(4)
Endorse the insurance receipt "Claim Filed," date-stamp, and initial.
Return the receipt to the customer and instruct him or her to keep it until
the claim is settled.

(5)
Place the completed Form 3812 and all other material which the customer has
received in the preaddressed PDC envelope and mail.

149.342 Inquiries and Duplicate Claims

a. Initiating Post Office.
If a customer inquires, in person or by telephone, about the status of a
claim, first ensure that the required time has elapsed for a duplicate claim
(45 days).  If the required time has elapsed, prepare and process a duplicate
claim as follows:

(1) For Duplicate Claims Filed in Person

(a)
Check to see that the original mailing receipt has been properly annotated
to indicate an original claim was filed.  If it does not so indicate, a
duplicate claim cannot be filed, and original claim procedures must be
followed.

(b)
Use the information on the original Form 3841 to complete as much of the
duplicate Form 3812 as possible.  Enter the same claim number, date mailed,
and claim date that appeared on the original Form 3812.  Obtain the signature
of the customer who initiated the original claim.

(2) For Duplicate Claims Filed by Telephone

(a)
Obtain mailing particulars from the customer and check your Form 3841 file
for a record of an original claim.  If a Form 3841 is found, complete a
duplicate claim, using all of the same information contained on the Form 3841.
 Endorse item 18, "Signature of Mailer," or item 19, "Signature of Addressee,"
as appropriate, with the words "accepted by telephone" and the date the
duplicate was initiated.  It is not necessary to verify the customer's
original mailing receipt.

(b)
If a Form 3841 is not on file, call the customer and advise that there is
no record of a claim having been filed.  Ask the customer to come into the
post office with the original mailing receipt (a copy is not acceptable). When
the customer comes into the post office, see if the receipt has been annotated
to show that an original claim was filed.  If it is annotated, complete a
duplicate claim.  If the receipt is not annotated, a duplicate claim cannot be
accepted and original claim procedures must be followed.

(3) Procedures for Completing All Duplicate Claims

(a)
Mark "Duplicate" at the top of the Form 3812.  Date-stamp item 20 and sign.

(b)
Annotate "Duplicate Claim Initiated (date)" on the original Form 3841. Do
not detach the Form 1510-A or Form 3841 from the duplicate claim form set.

(c)
Forward the entire package to the post office which serves the second
customer.

(d)
On claims for loss of insured articles, it is not necessary to again obtain
evidence that the addressee had not received the article.  This was provided
when the original claim was filed.

b. Receiving Post Office.
Upon receipt of a duplicate claim form set, the post office which serves
the second customer must take the following action within 5 days:

(1)
Verify delivery records for numbered insured or COD mailings.

(2)
Make a positive effort to contact the addressee to verify delivery or
nondelivery of all COD claims for complete loss (a phone call is acceptable).
Check post office records of parcels returned to the mailer. Annotate the
findings, including telephone information, in item 23 of Form 3812.  Detach
Form 3841 and file alphabetically by mailer's name.  Send claim to the St.
Louis PDC for adjudication.

(3)
For damage or partial loss claims, obtain the required information and
signatures.  Detach Form 3841 and file alphabetically by mailer's name. Send
claim to the St. Louis PDC.

(4)
Do not allow duplicate claims to be removed from Postal Service control.

149.343 Verifying Delivery.
Verify delivery records on all numbered insured and COD loss claims.  (Do
not verify delivery records on unnumbered loss and damage claims.)  Follow
these procedures:

a. Accepting Post Office

(1) Numbered Insured.
Send the complete claim form set (Form 3812 and Form 1510-A), with the
evidence that the addressee did not receive the article, directly to the post
office of address.

(2) COD Loss.
Detach the first copy of Form 1510-A from the claim set (Form 3812),
date-stamp and mail to the postmaster at the office of address.  Mail the
remainder of the claim set to the addressee (see 149.333d).

b. Postmaster at Post Office of Address.
Upon receipt of a Form 1510-A or the claim form set from the accepting
postmaster, take the following action within 5 days:

(1) Check Delivery Record.
Check delivery record, Form 3849 or Form 3883, to verify whether or not the
article was delivered.  When COD claims are received, search the tag file; if
no record is found, search the file of Forms 3849 at main office, station, or
branch involved.  Check delivery records beginning the date of mailing and
continuing for the next 60 calendar days.  Follow these procedures, as
appropriate:

(a) No Record.
If there is no record of delivery, annotate the right-hand blank portion of
the Form 1510-A or item 23, "No Record," on Form 3812, initial, and date-stamp.

(b) Record Is Found.
If there is a record of delivery, date-stamp, write the date of delivery,
to whom delivered, indicate any unusual delivery conditions, whether payment
was made by check, the check number, and the date the check was mailed.  Where
appropriate, furnish the money order numbers.  If none were issued, so
indicate. Attach a copy of the mailer's request to authorize a change to COD
charges or the addressee, if applicable.

(c) Parcel Returned or Refused.
If the parcel (insured or COD) was returned to sender or refused, indicate
this on the right-hand blank portion of the Form 1510-A or in item 23 on Form
3812.  Date-stamp and return to the mailing postmaster for verification of
return.  The mailing postmaster indicates (also on the right-hand blank
portion of Form 1510-A or in item 23 of Form 3812) whether he or she has a
record of return, provides the date returned to the sender, and date-stamps.

(d) Article Forwarded.
If the article was forwarded to another post office, show the forwarding
address and date on the 1510-A.  Send the 1510-A to that office.

(2) Signature.
The signature of the searching employee must be placed by the office date
stamp.

(3) Forwarding.
Batch and return Forms 1510-A and Forms 3812 claim form sets daily to the
St. Louis Postal Data Center, U.S. Postal Service (for address, see Address
List in Appendices).

149.4 Registered Mail and Registered COD Claims

149.41 Claim Filing Instructions

149.411 Required Forms.
Except for articles registered in conjunction with merchandise-return
service, a customer may file a claim at any post office, classified station,
or branch.  Claims for articles registered in conjunction with
merchandise-return service may only be filed by the merchandise-return permit
holder and the claims must be filed only at the post office where the
merchandise-return permit is held.  Form 565 (May 1984 or later) must be used
to file a claim for loss or damage of registered mail insured by the Postal
Service.  Also use Form 565 to file a claim for loss or damage of registered
COD mail.  Do not complete a separate Form 1510-B or Form 3841-A for
registered claims.  A claim has not been filed until a completed Form 565 has
been received by the Postal Service.

149.412  Evidence of Loss or Damage

a.  Claims for Complete Loss Filed by the Mailer.
All mailers filing claims for complete loss of registered mail must provide
proof that a loss has actually occurred before a post office accepts a claim
for indemnity.  Except for articles mailed with merchandise-return service,
proof may be supplied by any of methods (1) through (4),
below.  For matter registered in conjunction with merchandise-return
service, proof must be supplied by the method in (5), below.

(1)
The mailer may obtain Form 565 from any post office.  The mailer must then
complete the Form 565 and mail it to the addressee.  Postal Service personnel
must not mail the claim form for the mailer but, upon request, provide
assistance in completing the form.  The addressee must complete items 10 and
11 on Form 565 and return it to the mailer.  If the addressee has signed the
claim form and indicated the article was not received 15 days or more after
the date of mailing, the mailer may then take the claim form, along with the
original mailing receipt, to a post office and file the claim.

(2)
If the mailer is unable to obtain the cooperation of the addressee in
signing Form 565 for a registered article or, if he or she prefers, the mailer
may send a check or money order for $6 to the post office of address and
request a copy of the delivery record, provided 15 days or more have elapsed
since the date of mailing.  Any such request for a delivery record must
contain the date the article was mailed, the registered number, and the
complete name and address of the mailer and addressee (see 149.23).

(3)
If the mailer receives a notice from the post office of address that a
delivery record is not on file, the mailer may take this notice and original
mailing receipt to any post office and file a claim for loss.  The post office
accepting the claim must attach a copy of the notice from the addressee post
office to the Form 565 claim set and send them to the St. Louis PDC for
adjudication.

(4)
If the mailer has written and signed documentation (such as a letter dated
at least 15 days after the date of mailing) from the addressee stating the
addressee did not receive the article, the mailer may take this documentation
to a post office, along with the original mailing receipt, and file a claim.
A Postal Service employee must attach this documentation, or a copy of it, to
the claim form.

(5)
The merchandise-return service permit holder must request that the customer
complete items 2 through 9 of Form 565, and return it, along with the original
mailing receipt, to the permit holder.  The permit holder must complete items
10 and 11 and submit the completed form, along with the original mailing
receipt, to the post office where the permit is held.  The date in item 11
must show that 15 days or more have elapsed since the date of mailing.

b. Claims for Complete or Partial Loss of Contents.
The container and packaging must be presented to the Postal Service for
inspection when the claim is filed.  Exception: The claimant may submit Form
673 or Form 3760 (which was received from the Postal Service) to file a claim.

c. Claims for Damage.
If the mailer files a claim for partial loss or damage, either the mailer
or the addressee must present the mailing container and packaging for
inspection.

149.413 How to Complete Form 565

a. Customer Action.
Type or print legibly with a ballpoint pen (press hard).  Fill out items 2
through 9 and the lower portion (marked "Registered Mail Claim
Identification") of the form.  If you need help, the accepting postal employee
may assist you.  Complete items 2 through 9, as follows:

Item 2.  Enter the name, address, and ZIP Code of the mailer.
Item 3.  Enter the name, address, and ZIP Code of the addressee.

Note: Be sure to check the "Payee" block in either item 2 or 3 to
indicate who should receive the indemnity payment.

Item 4. Enter the register number.  Item 5. List and
describe the lost, missing, or damaged articles. For damage claims, describe
packaging in detail.  Item 6. Enter the total amount claimed,
excluding postage.  Item 7. Check the appropriate block to indicate
the type of claim.  Item 8. For damage claims only, list location of
the damaged articles.  Item 9. Mailer must sign, date, and enter
telephone number on the claim form.

b. Endorsements and Signatures (items 9 or 11, 22, or 27).
The accepting post office employee endorses the customer's original mailing
receipt "Claim Filed," then dates and signs.  Return the receipt to the
customer with instructions to keep it until the claim is settled.  Make sure
the customer has completed item 9 or 11, whichever is appropriate.  Also, the
postmaster, or his or her designated representative, dates and signs the form
in either item 22 or 27, whichever is appropriate.

c. Claim Identification.
The claimant must complete the identification section at the bottom of the
claim form.  The individual listed on the identification section must be the
person listed in either item 2 or 3.

149.42 Disposition of Damaged Article.
See 149.7.

149.43 Processing Form 565.
Send claim form and documentation to the second post office for completion
of the claim form.

149.44 Additional Post Office Responsibilities

149.441 Claim Form Initiated at Another Office

a. Mailing Office (Sent from Address Office)

(1)
Request the mailer to appear with the necessary documentation.  Do not
release the claim form to the mailer.

(2)
Complete claims for damaged registered articles received from the office of
address by having mailer sign, date, and enter his or her telephone number on
the claim in item 9.  Complete items 12 through 22.

(3)
Endorse the original registered mail receipt "Claim Filed," date, and sign.
 Return the receipt to the customer and instruct him or her to keep it until
the claim is settled.  Customers using firm mailing books must submit the
original copy.  Reproduced copies are not acceptable.

(4)
If the form is complete (including those claims for registers declared at
"No Value"), process as follows (do not separate parts of form remaining):

(a)
Forward all claims for alleged wrong delivery, alleged rifling, and
no-value loss to the local postal inspector-in-charge.  Endorse the envelope,
"Form 565."  The rifled envelope or package must accompany the claim file.

(b)
Send claims for damage and for loss with value to:

DIRECTOR
POSTAL DATA CENTER
US POSTAL SERVICE
PO BOX 80143
ST LOUIS MO  63180-9143
(Endorse envelope, "Form 565.")

b. Address Office  (claim sent from mailing office)

(1)
When a claim is for loss, search files (Forms 3849, Forms 3883, Forms 3867
and manifold bills) for record of receipt and/or delivery and endorse claim
form to indicate results (item 24).

(2)
If the claim is for damage and the addressee has possession of the damaged
article, the article and the packaging must be presented for inspection and
retained by the post office until released by the PDC.

(3)
Complete Form 565 (items 23 through 27).

(4)
If Form 565 is incomplete, return it to the postmaster at the office of
mailing.  If Form 565 is complete, follow instructions in
149.441a(4)(a) or 149.441a(4)(b) for disposition.

(5)
All portions of the claim form must be completed within 5 days after
receipt and forwarded to the St. Louis PDC or the Inspection Service,
whichever is applicable.

149.442 Inquiries and Duplicate Claims

a. Inquiries

(1) Memorandum.
Provided that at least 3 months have elapsed since the claim was initiated,
but not more than 18 months from the date the article was mailed, process the
customer's inquiry by sending a memorandum requesting status to the Postal
Data Center in St. Louis.  The memorandum must identify the nature of the
claim, registration number, the name and addresses of both mailer and
addressee, the date of mailing, and the date the claim was filed.  The
memorandum is sent to the St. Louis Postal Data Center, U.S. Postal Service
(for address, see Address List in Appendices).


(2) Follow-ups.
Depending upon the response from the PDC, proceed as follows:

(a)
If the PDC indicates that the claim has been received, annotate the Form
3841-A and inform the customer who initiated the inquiry.

(b)
If the PDC has no record of the claim, it provides further instructions.

b. Duplicate Claims

(1) Restrictions.
Duplicate claims must not be accepted or submitted unless requested by the
St. Louis PDC or the Office of Classification and Rates Administration, USPS
Headquarters.

(2) Processing Duplicate Claims.
When instructed, the initiating post office must prepare and process a
duplicate claim, as follows:

(a)
Use the information on the original Form 3841-A to complete as much of the
duplicate Form 565 as possible.  The signature of the customer who initiated
the claim and the supporting documents are necessary.

(b)
Mark "Duplicate" at the top of the Form 565.

(c)
Annotate the original Form 3841-A to indicate that a duplicate claim has
been initiated and the date forwarded to the second post office.

(d)
Process through normal channels.

149.5 Express Mail Claims

149.51 How to File

149.511 Who May File.
Claims for complete loss may be filed only by the mailer.  Claims for
damage or partial loss may be filed by either the mailer or the addressee (see
295 and 296).

149.512 Required Forms.
Claims for loss or damage filed by the mailer must be filed on Form 5690.
A claim has not been filed until a completed Form 5690 has been accepted by
the Postal Service.

149.513 When to File

a. Loss Claims.
Claims for loss may be filed no earlier than 7 days following the date of
mailing, 45 days after the date of mailing for articles with COD service.  All
claims must be filed within 90 days from the date of mailing.

b. Damage Claims.
Claims for damage or partial loss should be filed immediately, but must be
filed no later than 90 days from the date of mailing.  Claims filed by the
addressee must be returned to the post office of mailing for signature by the
mailer, designation of the payee by the mailer, and inclusion of the customer
receipt copy of the mailing label.

149.514 Required Information

a. General.
The mailer or addressee must present the damaged article and packaging at
the post office when the claim is filed.  The mailer must also provide the
customer receipt copy of the mailing label at the time the claim is filed, or
when the claim is returned from the post office of address for signature by
the mailer.  The customer receipt copy of the mailing label must be attached
to the claim form at the time the claim is filed (see 296).  If the
article was sent Express Mail COD, the mailer must also provide the original
COD receipt.  Endorse the COD receipt "Claim Filed," date-stamp, and initial.
Return the COD receipt to the customer and instruct the customer to keep it
until the claim has been settled.

b. Merchandise and Document Reconstruction.
In the event claims are required for both merchandise insurance and
document reconstruction insurance on the same shipment, two Forms 5690 must be
completed and processed.  Complete documentation must be attached to each
claim form, supporting the type of loss or damage claimed.  The two claims
must be submitted together.

149.515 Verifying Delivery.
Verify delivery records on all Express Mail claims.  Attach a copy of the
delivery receipt to the claim form.  Search COD tags for records of delivery
of Express Mail COD shipments.  If no record is found, search Express Mail
delivery receipts.

149.52 Disposition of Damaged Article.
See 149.7.

149.53 Adjudication.
The St. Louis PDC (or the Office of Classification and Rates
Administration, USPS Headquarters, at its discretion) adjudicates and pays or
disallows all Express Mail claims.

149.6  Sample Claims

149.61  Who May File

149.611
Any COD mailer may request permission from the manager, Claims and Inquiry
Branch, Postal Data Center (PDC), P.O. Box 80143, St. Louis, MO 63180-9143, to
file under these alternative procedures.  The manager approves the request
when it is the most cost-efficient method of processing the mailer's claims,
according to the standards in 149.612.  Mailers are encouraged to
participate in this program, because of the following benefits:

a.
Fewer individual claims need to be presented by the mailer.  Since claims
filed by most large mailers are computer-generated, the savings to mailers may
be significant.

b.
No inquiries or follow-up claims have to be filed by the mailer.  This
saves the mailer time, and also reduces overall costs incurred in filing
claims.

c.
The use of sampling procedures in lieu of processing individual claims
minimizes the costs to the Postal Service.

149.612
If the manager, Claims and Inquiry Branch, determines that use of the
sampling procedure is not the most effective and efficient method of
processing the mailer's claims, the manager notifies the mailer, and instructs
the post office to process the claims individually.  Consider the following
general criteria in making the decision:

a.
Expense to the mailer.

b.
Expense to the Postal Service.

c.
Expedition of the claims process.

d.
Availability of labor and resources to process the claims at the accepting
post office.

e.
Whether use of the sampling procedure results in an accurate determination
of the Postal Service's responsibility for indemnification of the claimant.

f.
Other interests of the Postal Service.

149.613
Claimants have the right to appeal the manager's determination in
accordance with 149.91.

149.614
Mailers who file claims under the provisions of this section are deemed to
have consented to adjudication of those claims as prescribed in
149.64.

149.62  Procedures for Filing Claims Under a Sampling Agreement

149.621  List of Claims and Number of Articles Mailed.
The claimant must present a list of all COD items eligible for adjudication
to the claims and inquiry section of any post office, or the employee in a
post office who has been designated to handle indemnity claims.  The list must
conform with the following conditions:

a.
For each claimed item, the list must contain the COD number followed by the
name and address of the addressee, date of mailing, postage, fee, and amount
due sender.  All items must be listed by COD number, in ascending numerical
order.

b.
The list must contain all claims for the period covered by the list.  No
additional claims for articles mailed during that timeframe may be submitted.
No additional claims may be filed under these procedures until any previous
claims under these procedures have been completed.  A mailer may not submit
more than three groups of claims under these procedures annually.

c.
The list must contain a summary sheet showing the total number of claims
and total amount due the sender.

d.
The claimant must submit a statement showing the total number of COD
articles mailed during the time period represented by the sample.

149.622  Computing the Number of Claims to be Sampled.
The postmaster sends a memorandum requesting the number of claims to be
sampled to the manager, Claims and Inquiry Branch, Postal Data Center (for
address, see Address List in Appendices).  This memorandum must contain
the name and address of the mailer, the total number of claims on the list,
and the names and phone numbers of the employees primarily responsible for
processing the sample.  In addition, the postmaster must include in the
memorandum submitted to the St. Louis PDC a copy of the mailer's statement
showing the total number of COD articles mailed during the time period
represented by the sample.  Upon receipt of the memorandum, the St. Louis PDC
applies the sampling method commonly referred to as "Sampling for Estimation
of Proportions" to determine the number of claims to be sampled, the first
claim to be sampled, and the sampling interval to identify the subsequent
claims to be sampled.

Note:  Under the procedure, "Sampling for Estimation of Proportions,"
an assumed approximate proportion, confidence level (95%), and target
precision level, allow a computation of a required sample size from a finite
universe of specific size.  A systematic random sampling procedure is
effected, with the sampling interval being the largest integer not exceeding
the ratio of universe to sample size.  The manager, Claims & Inquiry Branch,
at the St. Louis Postal Data Center (PDC), issues a memorandum to the
postmaster showing the total number of claims to be sampled, the first claim
on the list to be sampled, and the interval for sampling the remaining claims.
 Upon receipt, the postmaster must provide a copy of the memorandum to the
claimant.  The manager, Claims & Inquiry Branch, coordinates the sample and
provides additional instructions to the post office.

149.623  Marking the List of Claims.
The claims and inquiry employee must mark the list showing all claims to be
sampled, starting with the first claim specified by the memorandum.  The
marked list must be returned to the mailer.

149.624  Completion of Claim Forms.
Using the marked list, the mailer must complete the portions of the claim
Form 3812, usually completed by customers who file individual claims (see
149.313), for each claim to be sampled.  Information on the claim
form must be identical to the entries on Form 3877 or its facsimile.  The
actual date of mailing must be used.  In addition, the claimant is required to
complete other portions of the form (for example, inserting the claim number
and special identification marking by computer).  The name and address of the
mailer shown on the Form 3877 and Form 3812 must be the same as the name and
address of the mailer shown on the COD tags.


149.625  Submission of Claim Forms.
Mailers should return the marked list and completed claim forms (along with
proof of mailing) within 2 weeks of receipt of the marked list.  Mailers must
submit claim forms in the same order as they appear on the list.  At the same
time, mailers must also provide a separate list of the claims to be sampled.
In addition, mailers are encouraged to provide the post office with a set of
address labels showing the complete names and addresses of the addressees.
These labels expedite sending the inquiry portion of the claim form to the
addressees.

149.63  Partial Payment.
A partial payment, based on those COD claims that can be verified by the
addressee post office, generally is made 45 to 60 days after the claims have
been sent to the addressee post office for verification.  In determining
partial payment, the PDC must follow the guidelines for adjudication in
149.641 and 149.642.

149.64  Adjudication

149.641  Computation of Payable Claims.
The St. Louis PDC is responsible for determining the number of payable and
nonpayable COD claims under the sampling procedures, after receipt of the
verification process completed by the local post office.

a.
The PDC determines the payment due the claimant by multiplying the
percentage of claims found to be payable by the number of claims submitted,
and then multiplying the result by the average value of payable claims
sampled.  For the partial payment, the PDC determines the partial payment due
the claimant by multiplying the percentage of claims found to be payable at
that time by the number of claims submitted, and then multiplying the result
by the value of the smallest payable claim sampled.

b.
Before determining payment due claimant, the PDC adjusts the total number
of claims by (1) subtracting any articles or contents returned to sender
without a COD tag and (2) subtracting, from the total due any sender, checks
made out to the mailer which are discovered.  These checks count as payable
claims and are given to the mailer.

149.642  Notification of Results.
The St. Louis PDC must prepare a report to the mailer showing the following:

a.
Number of claims submitted by the mailer.

b.
Number of claims deducted from the total number submitted by the mailer and
the reason for the deduction.

c.
Number of payable claims in the sample.

d.
Number of nonpayable claims in the sample.

e.
Percent of payable claims.

f.
Number of payable claims from the total number of claims submitted by the
mailer.

g.
Average value of claims in the sample less the COD fee.

h.
Number and dollar value of any checks and money orders submitted by COD
recipients.

i.
Total amount due the mailer.

j.
Partial payment already made.

k.
Balance due mailer.

149.643  Mailer Review

a.
The Postal Data Center (PDC) issues a check for the balance due the mailer
along with the report provided in 149.642.  Upon review of the
report, the mailer has the option of reviewing the results of the addressee
post office's search of delivery records shown on disallowed completed claim
forms.  The mailer must exercise this option within 2 weeks of receipt of the
report and check from the PDC.  Failure to do so constitutes the mailer's
concurrence with the report provided by the PDC.

b.
Photocopies of completed claim forms or delivery records cannot be provided
to mailers.  This review of the nonpayable claims must take place with postal
personnel at the post office where the claims were filed prior to the issuance
of a check.  If a discrepancy is noted, the check should be returned to the
PDC showing the reason for the discrepancy.  The PDC reissues a check after
the discrepancy is resolved.  The cashing of the check for the balance due by
the mailer constitutes the mailer's concurrence with the report provided by
the PDC.

149.644  Appeal.
If any discrepancies cannot be resolved, the mailer may appeal the decision
in accordance with 149.91.

149.65  Exhibit 149.65.
Exhibit 149.65 contains a sample schedule for completion of this
process.  Any individual claim may take more time or less to complete each
stage of the process.

Exhibit 149.65 Time Limits for Completing Claims Sample

]




ActionTime Limit

1.Mailer submits list of claims.Within 1 yr. of date of mailing.
2.  Post office sends memorandum
to Headquarters and St. Louis PDC.Within 3 days of receipt of list of
claims from mailer.

3.  Headquarters responds.Within 1 week of receipt of
notification.

4.  Post office provides copy of
response to mailer.Immediately upon receipt.

5.  Post office marks list of claim
    forms and returns to mailer.Within 1 week of receipt of
response.

6.  Mailer completes claim forms
and returns claims and list to post office.
Within 2 weeks from receipt of
marked list.

7.  Verification of claim forms.
Immediately upon receipt.

8.  Initial processing of claims by
accepting post office.Within 2 weeks of receipt from
mailer.

9.  Duplicate claims completed and
processed by accepting post office.30 days after last claim is
processed, complete and process
immediately.

10.  Partial payment issued.Within 45 to 60 days from beginning
of sampling.

11.  Final claims action.2 weeks after last duplicate claim
is processed, begin telephone
inquiries.

12.  Adjudication and preparation
of report and check by St. Louis PDC.2 weeks.

13.  Mailer review of report.Immediately upon receipt.

14.  Mailer review of claim forms (optional).
Within 2 weeks of notification to
St. Louis PDC.

15.  Issuance of check.Immediately.

Exhibit 149.65 Time Limits for Completing Claims Sample]




149.7 Disposition of Damaged Articles.
For a completely damaged article which has little or no salvage value (such
as smashed glassware), allow the customer to retain the article if he or she
so desires; otherwise, destroy it.  If the completely damaged insured, COD, or
Express Mail article has salvage value, retain it for 90 days, then forward it
to your dead parcel branch (see 159.521b) on the next weekly
dispatch.  Use Form 3831.  If the customer's claim is denied, the article must
be returned upon request.  For registered mail damage claims, the article and
the packaging must be retained and protected at the post office until released
by notification from the St. Louis PDC.

149.8 Payment Conditions, Recovery of Articles, and Reimbursement

149.81 Payment Conditions

149.811 Insufficient Fee.
If, through established error by the Postal Service, a fee was charged
which was less than that required to cover the amount of insurance coverage
requested at the time of mailing, the mailer may be permitted to pay the
deficiency in fee.  Indemnity may be paid within the limit fixed for the
higher fee.  This only applies to the insurance fee when the article is
insured.  An additional fee may not be paid to register an article previously
insured or to increase the indemnity on the registered article.

149.812 Loss or Total Damage.
If the insured, registered, or COD article was lost or the entire contents
totally damaged, the payment includes an additional amount for the postage
(not fee) paid by the mailer.

149.813 Mailer and Addressee Claim Insurance.
If both mailer and addressee claim insurance, they should decide between
themselves who should receive payment.  If no agreement is reached, payment is
made to the mailer, if a payment is due.

149.814 Incompetent or Deceased Payee.
If the payee is incompetent or deceased, payment is made to the legal
representative.  If there is no legal representative, payment is made to such
relative or representative of the payee as is entitled to receive the amount
due, in accordance with applicable state laws.

149.82 Disposition of Recovered Article.
When a lost registered, insured, COD, or Express Mail article is recovered,
the payee may accept the article and reimburse the Postal Service for the full
amount paid if the article is undamaged, or for such other amount as may be
determined by the Director, Office of Classification and Rates Administration,
USPS Headquarters, if the article is damaged, has depreciated in value, or the
contents are not intact.

149.83 Reimbursements

149.831 Reimbursement Tendered.
If reimbursement is tendered representing an overpayment, erroneous or
improper indemnity claim payment, or a voluntary indemnity refund, postal
personnel must accept it and issue a receipt.  Send all reimbursements to the
St. Louis PDC, with all claim-identifying information.  Personal checks, money
orders, or other negotiable instrument should be made payable to the Postal
Service.  If the instrument is made payable to the postmaster, he or she must
sign his or her name and restrictively endorse it "Pay to Postal Service" and
forward as above.  Do not mark any entry in the cashbook.

149.832 Reimbursement Not Tendered.
When an overpayment or erroneous or improper indemnity claim payment is
disclosed and repayment is not tendered, report it to the Director, St. Louis
PDC, by memorandum, so it may be placed under accounts receivable control by
the PDC.

149.9 Appeals and Postal Service Authority

149.91 Appeals.
All appeals of Postal Service claim decisions must be filed within 3 months
of the date of the original decision.  Appeals must be sent to:

POSTAL DATA CENTER
US POSTAL SERVICE
PO BOX 80140
ST LOUIS MO  63180-9140

149.92 Postal Service Authority.
The requirements established in 149 may be waived in favor of the
customer when the Director, Office of Classification and Rates Administration
of the Postal Service, determines it is in the best interest of the Postal
Service.


