Scenarios for Code J/T/5 Shared Liability Scenario 1: - Code 5, J or T, net weight 1000 lbs. - TSP calculates member’s loss (if FRV) at $11,000 - How much does TSP pay member and how much would government repay the TSP? Scenario 2: - Same as scenario 1, except that TSP believes that only $4,000 of the claim is substantiated or legitimate - How does TSP proceed? How much does TSP pay member, and how much would the government repay the TSP? - What if customer rejects TSP offer, then files with MCO and MCO pays $6,000.
Scenarios for Code J/T/5 Shared Liability Scenario 2 continued: - How much would the MCO require the TSP to pay under normal circumstances? Scenario 3: - What if a TSP goes to pickup a crated Code J, T or 5 military air terminal and the outside of the container is quite wet. What would be required of the TSP to establish that any water damage to the HHG happened while in the possession of the government, and therefore the TSP had no liability?
CLAIMS PANEL Friday, October 1, 2010 8:30 am – 10:30 am
Answers Scenario 1 Code 5 or T, net weight of 1000 pounds TSP calculates member’s loss (if FRV) at $11,000.00 How much does TSP pay the member, and how much would government pay back the TSP? Since the maximum liability for the claim is twice the normal liability of regular FRV claim, the liability would be $8 times the net weight = $8000, or $10,000, whichever is greater. The TSP would pay the member $10,000, and the government would pay the TSP back $5000, or 100% of the depreciated value of the claimed items, whichever is less.
Answers Scenario 2 Same as scenario 1, except that TSP believes that only $4,000.00 of the claim is substantiated or legitimate How does TSP proceed? How much does TSP pay the member, and how much would government pay back the TSP? TSP would make offer of $4000 to the customer, if accepted; the government would pay $2000, or 100% of the depreciated value of the items back to TSP, whichever is less. What if customer rejects the TSP offer goes to the MCO and MCO pays $6,000.00. How much would MCO require TSP to pay under normal circumstances? If the MCO paid $6000 to the customer it would have been at a depreciated rate, the TSP would be liable for full replacement of the items the governments decided were substantiated so the government would charge the TSP 50% of the full replacement value of this claim.
Answers Scenario 3 What if a TSP goes to pick up a crated code 5/T shipment from an Air Mobility Command, and the outside of the crate is quite wet – what would be required of the TSP to establish that the water damage to the household goods happened while in the possession of the government, and therefore they had no liability? TSP would have to note the water damage to the pickup documents and report it to terminal PPSO describing the condition of the shipment. Maybe have an inspector come and verify damage.
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