Domestic Mail Manual • Updated 5-12-08
609
609.1.3
Filing Indemnity Claims for Loss or Damage: General Filing Instructions
609 Filing Indemnity Claims for Loss
or Damage
1.0 General Filing Instructions
1.1 Extra Services With Indemnity
A customer may file an indemnity claim for insured mail, collect on delivery (COD)
items, Registered Mail with postal insurance, or Express Mail. Inquiries on uninsured
Registered Mail may be filed as detailed in 503.2.0. Customers can find additional
information in Publication 122, Customer Guide to Filing Domestic Insurance Claims
or Registered Mail Inquiries, available on www.usps.com and in post offices.
1.2 Bulk Insured Claims
Mailers authorized to mail at bulk insured prices under 503.4.0 will receive
instructions for filing claims from their postmaster or designee, including specific
claim numbers to be used when filing claims. At some time in the future, electronic
filing of indemnity claims will become mandatory. Prior to mandatory electronic
claims filing, customers will be provided with the format instructions for the new
electronic (soft copy) of Form 3877 and instructions for electronic filing of indemnity
claims.
1.3 Who May File for Loss or Damage
A claim may be filed by:
a. Either the mailer or addressee, for damaged articles or articles with some or all
of the contents missing.
b. Either the mailer or addressee who is in possession of the original retail mailing
receipt, or in possession of the online label record or computer printout of the
Web-based application as described in 3.1e, for lost articles.
c. Only the merchandise return permit holder, for merchandise return service
(MRS) parcels that are registered or insured as indicated by the permit holder on
the MRS label.
d. Only the mailer, when the mailer has added and paid for insurance on
merchandise return service parcels.
e. Only the mailer, for insured or collect on delivery (COD) parcels paid using eVS
under 705.2.9.
Overview
1.0 General Filing Instructions
2.0 Providing Proof of Loss or Damage
3.0 Providing Evidence of Insurance and Value
4.0 Claims
5.0 Compensation
6.0 Adjudication of Claims
Domestic Mail Manual • Updated 5-12-08
609
609.1.4
Filing Indemnity Claims for Loss or Damage: General Filing Instructions
1.4 When to File for Loss or Damage
File claims as follows:
a. For damaged or missing contents, a customer should file a claim immediately,
but must file no later than 60 days from the date of mailing.
b. For a lost article, a customer must file a claim within the time limits in the chart
below.
1.5 Where to File for Loss or Damage
A claim may be filed:
a. At any post office, station, or branch, except for Registered Mail articles with
merchandise return service.
b. Only at the post office where the merchandise return permit is held, for
Registered Mail articles with merchandise return service.
c. Online at www.usps.com for customers who purchased insurance online
through Click-N-Ship or eBay.
d. Only at the administering post office where the permit is held and Forms 3877
are presented for insured or COD parcels paid using eVS under 705.2.9.
1.6 How to File for Loss or Damage
A customer may file a claim by presenting evidence of insurance, evidence of value,
and/or proof of damage. If the article was mailed Express Mail COD or Registered
Mail COD, the customer must provide both the original COD receipt with either the
Express Mail or the Registered Mail receipt. The customer must complete the
applicable portions of Form 1000. Customers may print Form 1000 from
www.usps.com and complete the customer section before going to the Post Office.
1.7 Filing Duplicate Claims for Loss or Damage
A customer must file any duplicate claim no sooner than 30 days and no later than
60 days from the date the original claim was filed.
MAIL TYPE OR SERVICE
WHEN TO FILE (FROM MAILING DATE)
No Sooner Than No Later Than
Insured Mail 21 days 180 days
COD 45 days 180 days
Registered Mail 15 days 180 days
Registered COD 45 days 180 days
Express Mail 7 days 90 days
Express Mail COD 45 days 90 days
APO/FPO Insured Mail
(First-Class Mail, SAM, PAL, or COD)
45 days 1 year
APO/FPO Insured Mail (Surface Only) 75 days 1 year
Domestic Mail Manual • Updated 5-12-08
609
609.3.1
Filing Indemnity Claims for Loss or Damage: Providing Proof of Loss or Damage
2.0 Providing Proof of Loss or Damage
2.1 Missing Contents
If a claim is filed because some or all of the contents are missing, the addressee
must make the mailing container available to the USPS for inspection, including any
wrapping, packaging, and any contents that were received. Failure to do so will
result in denial of the claim.
2.2 Proof of Damage
If the addressee files the claim, the addressee must make the damaged article and
mailing container available to the USPS for inspection, including any wrapping,
packaging, and any other contents that were received. If the mailer files the claim,
the St. Louis ASC will notify the addressee by letter to present the damaged article
and mailing container to the USPS for inspection, including any wrapping,
packaging, and any other contents that were received. Failure to do so will result in
denial of the claim.
3.0 Providing Evidence of Insurance and Value
3.1 Evidence of Insurance
For a claim involving insured, COD, registered, or Express Mail service, the customer
must present any of the following evidence showing that the particular service was
purchased:
a. The original mailing receipt issued at the time of mailing (retail insured mail,
Registered Mail, and COD receipts must contain a USPS postmark).
Reproduced copies are not acceptable.
b. The wrapper showing the names and addresses of the sender and the
addressee and the proper mail endorsement, tag, or label showing that the
article was sent insured, COD, registered with postal insurance, or Express
Mail. If only the wrapper is submitted, indemnity can be limited to $100 for
insured, $50 for COD, $100 for Registered Mail, and $100 for Express Mail.
c. For Express Mail items accepted for mailing under an Express Mail Manifesting
agreement in 705.2.0, a copy of the manifest page showing the Express Mail
label number for the item in question; the manifest summary page for the date
the piece was mailed; a copy of Form 3152-E, Express Mail Manifesting
Certification, round-dated by the accepting post office; and a copy of the EMCA
monthly statement that lists the label number and postage for the mailpiece. If
the customer purchased additional insurance, a copy of the round-stamped
Form 3877, Firm Mailing Book for Accountable Mail, must also be submitted.
d. For retail insurance the original sales receipt from the USPS listing the mailing
receipt number and insurance amount, if the original mailing receipt is not
available. Reproduced copies of the USPS sales receipt are not acceptable.
e. For insurance purchased online, the mailer may access and print an electronic
record as follows:
Domestic Mail Manual • Updated 5-12-08
609
609.3.2
Filing Indemnity Claims for Loss or Damage: Providing Evidence of Insurance and Value
1. A computer printout from the Web-based application used to print the
label and purchase the insurance. The printout must clearly identify the
following information: the Delivery Confirmation or Signature Confirmation
number of the insured parcel, total postage paid, insurance fee paid,
declared value, declared mailing or shipping date, origin ZIP Code, and
delivery ZIP Code.
2. A printed online label record.
f. For insured mail or COD mail paid using eVS under 705.2.9, the mailer must
present a printout of the part of Form 3877 that identifies the parcel by
including the article number (the package identification code) of the insured or
COD parcel, total postage paid, fee paid, declared insured value, amount due
sender if COD, mailing date, origin ZIP Code, and delivery ZIP Code reported in
the parcel record in the eVS manifest file. This information is used by the
administering Post Office where the eVS permit account is held and the
Form 3877 was presented to confirm payment through eVS.
3.2 Evidence of Value
The customer, either the mailer or the addressee, must submit acceptable evidence
to establish the cost or value of the article at the time it was mailed. (Other evidence
may be requested to help determine an accurate value.) Examples of acceptable
evidence are:
a. Sales receipt, invoice or bill of sale, or statement of value from a reputable
dealer.
b. For items valued up to $100, the customer’s own statement describing the lost
or damaged article and including the date and place of purchase, the amount
paid, and whether the item was new or used (only if a sales receipt or invoice is
not available). If the article mailed is a hobby, craft, or similar handmade item,
the statement must include the cost of the materials used in making the item.
The statement must describe the article in sufficient detail to determine whether
the value claimed is accurate.
c. Picture from a catalog showing the value of a similar article (only if a sales
receipt, invoice, or statement of value from a reputable dealer is not available).
The date and place of purchase must be included.
d. Paid repair bills; if the claim is for partial damage, estimates of repair costs or
appraisals from a reputable dealer. Repair costs may not exceed the original
purchase price.
e. Receipt or invoice for the costs incurred to buy a surety bond required to
reissue a lost item.
f. Receipt or invoice of costs incurred for the reconstruction of nonnegotiable
documents.
g. A copy of a canceled check, money order receipt, credit card statement, or
other documentation indicating the amount paid. For Internet purchases, a
copy of the front and back of the canceled check, money order, or a copy of
the credit card billing statement is required.
Domestic Mail Manual • Updated 5-12-08
609
609.4.1
Filing Indemnity Claims for Loss or Damage: Claims
h. For Internet transactions conducted through a Web-based payment network
that offers payment services through a stored value account, provide a
computer printout of the online transaction identifying the purchaser and seller,
price paid, date of transaction, description of item purchased, and assurance
that the transaction status is completed. The printout must clearly identify the
Web-based payment network provider through which the Internet transaction
was conducted.
4.0 Claims
4.1 Payable Claim
Insurance for loss or damage to insured, registered, or COD mail within the amount
covered by the fee paid or within the indemnity limits for Express Mail as explained in
4.2 is payable for the following:
a. Actual value of lost articles at the time and place of mailing (see 4.1n for bulk
insured articles).
b. Cost of repairing a damaged article or replacing a totally damaged article not
exceeding actual value of the article at the time of mailing.
c. Remittance due on a COD parcel not received by the sender, subject to the
limitations set by the standards for COD service.
d. Reasonable costs incurred duplicating documents such as:
1. Copying service.
2. Notary fees.
3. Bonding fees for replacement of stock or bond certificates.
4. Reasonable attorney’s fees if required to replace the lost or damaged
documents.
5. Other direct and necessary expense or cost, as determined by the USPS.
6. Face value of negotiable documents that cannot be reconstructed up to
the amount of insurance coverage bought, but not to exceed the $25,000
maximum amount of insurance coverage available if sent by Registered
Mail.
e. Extra cost of gift wrapping, if the gift-wrapped article was enclosed in another
container when mailed.
f. Cost of outer container, if designed and constructed for the article sent.
g. Fair market value of stamps and coins of philatelic or numismatic value, as
determined by a recognized stamp or coin dealer or current coin and stamp
collectors newsletters and trade papers.
h. Federal, state, or city sales tax paid on articles lost or totally damaged.
i. Postage (not fee) paid for sending damaged articles for repair. (The USPS must
be used for this purpose. Other reasonable transportation charges may be
included if the USPS is not available.)
Domestic Mail Manual • Updated 5-12-08
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609.4.2
Filing Indemnity Claims for Loss or Damage: Claims
j. Cost of film stock or blank tape for photographic film, negatives, slides,
transparencies, videotapes, laser disks, x-rays, magnetic resonance imaging
(MRI) prints, computerized axial tomography (CAT) scan prints, etc.
k. Cost of bees, crickets, or baby poultry destroyed by physical damage to the
package or delay for which the USPS is responsible. (In the absence of definite
evidence showing responsibility for death of these insects or animals, the USPS
is presumed to be at fault if 10% or more are dead on delivery, and pays
indemnity for all dead bees, crickets, or poultry; if less than 10%, the USPS is
not presumed to be at fault.)
l. Cost of filing a lost ticket report with the airline.
m. Per page copying cost of lost or damaged blueprints, schematics, etc.
n. For bulk insured articles, indemnity is provided for the lesser of (1) the actual
value of the article at the time of mailing or (2) the wholesale cost of the
contents to the sender.
o. Except for Registered Mail, the maximum indemnity for negotiable items
(defined as instruments that can be converted to cash without resort to
forgery), currency, or bullion, is $15.00.
4.2 Payable Express Mail Claim
In addition to the payable claims in 4.1, Payable Claim, the following are payable for
Express Mail:
a. For Express Mail insurance, nonnegotiable documents are insured against loss,
damage, or rifling while in transit. Coverage is limited to $100 per piece (the unit
on which postage is paid), subject to a maximum limit per occurrence as
provided in 4.2a4. Claims for document reconstruction insurance must be
supported by a statement of expense incurred in reconstruction. For this
standard, while in transit begins when the USPS receives custody of the
insured material and ends when the material is delivered to the addressee or, if
undeliverable, when the sender receives the material on return. Nonnegotiable
documents include audit and business records, commercial papers, and such
other written instruments for the conduct and operation of banks and banking
institutions that have not been made negotiable or cannot be negotiated or
converted into cash without forgery. Nonnegotiable documents can be in print,
disk, tape, microfilm, or other forms of data storage. Articles such as artwork,
collector or antique items, books, pamphlets, readers proofs, repro proofs,
separation negatives, engineering drawings, blueprints, circulars,
advertisements, film, negatives, and photographs are considered merchandise,
not documents. Indemnity for document reconstruction is paid as follows:
1. For payments made (or which are payable) for reasonable costs incurred
in the reconstruction of the exact duplicate of a lost or damaged
nonnegotiable document. Indemnity is not paid for the cost of preparing
the document mailed, or for the mailer’s time in preparing the document
mailed or reconstructed. Except for the per page copying cost, indemnity
is not paid for documents if copies of the lost document are available or if
they could have been made before mailing.
Domestic Mail Manual • Updated 5-12-08
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609.4.3
Filing Indemnity Claims for Loss or Damage: Claims
2. Reasonable reconstruction expenses incurred or obligated between the
time of guaranteed or scheduled delivery and actual delivery.
3. Loss sustained by the use of funds to maintain cash balances during the
period of document reconstruction (based on the applicable Federal
Reserve discount price). The period begins at the scheduled delivery time
and may not exceed 15 days.
4. Catastrophic loss for multiple Express Mail items, such as a major fire,
limited to $5,000.00, regardless of the number of Express Mail items, or
the identity or number of customers involved. Each claim resulting from a
catastrophic loss first is adjudicated individually. If the preliminary
adjudication exceeds $5,000.00, the percentage of the sum represented
by each individual settlement is applied to the $5,000.00 to determine
each claimant’s pro rata share of the final settlement, not to exceed $100
per piece.
b. Merchandise insurance coverage is provided against loss, damage, or rifling
and is limited to $100. (Additional insurance, up to a maximum liability of
$5,000.00, may be purchased for merchandise valued at more than $100.)
c. For negotiable items, currency, or bullion, the maximum indemnity is $15.00.
4.3 Nonpayable Claims
Indemnity is not paid for insured mail, Registered Mail, COD, or Express Mail in
these situations:
a. Evidence of insurance coverage not provided.
b. Loss, rifling, or damage occurred after delivery by the USPS.
c. Claim based solely on sentimental rather than actual value.
d. Requested replacement value exceeded actual value at the time and place of
mailing.
e. The contents of film (e.g., positives, negatives, slides, transparencies,
videotapes, laser disks, x-rays, magnetic resonance imaging (MRI) prints,
computerized axial tomography (CAT) scan prints), the cost of creating or
re-creating these items, or the photographer’s time and expense in taking the
photographs.
f. Loss resulting from delay of the mail, except under 4.2a.2, Payable Express
Mail Claim, and 4.3ad below.
g. Consequential loss claimed rather than the actual value of the article.
h. Perishable contents froze, melted, spoiled, or deteriorated.
i. Damage by abrasion, scarring, or scraping to articles not properly wrapped for
protection.
j. Death of baby poultry caused by shipment to points where delivery could not
be made within 72 hours from the time of hatching, unless it is determined that
transportation was in place to achieve the 72-hour target.
Domestic Mail Manual • Updated 5-12-08
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609.4.3
Filing Indemnity Claims for Loss or Damage: Claims
k. Death of honeybees, crickets, and harmless live animals not the fault of the
USPS (mailability of these insects and animals is subject to 601.9.0,
Perishables).
l. The sender or addressee failed to cooperate in the completion of required claim
forms.
m. Fragile nature of article prevented its safe carriage in the mail, regardless of
packaging.
n. Personal time required to replace documents.
o. Claim filed after the article transported outside the USPS.
p. Damage caused by shock, transportation environment, or x-ray, without
evidence of damage to the mailing container.
q. Mail article or part or all of its contents officially seized while in the military postal
system overseas.
r. Consequential loss of Express Mail claimed, except under 4.2a3 and 4.3ad.
s. Nonmailable items, prohibited items, or restricted items not prepared and
mailed according to postal standards, or any item packaged in such a manner
that it could not have reached its destination undamaged in the normal course
of the mail.
t. Loss or damage caused by employees or agents of the sender or addressee.
u. Radioactive injury, electrical or magnetic injury, or erasure of electrical
recordings.
v. War, insurrection, or civil disturbance, or seizure by any agency of government.
w. Loss after items signed for by the addressee, the addressee’s agent, or delivery
employee if authorized under the applicable standards.
x. Items sent COD without the addressee’s consent.
y. Adult birds in Express Mail with no physical damage to the container.
z. Cost incurred for estimates and appraisals.
aa. Lottery tickets, sweepstakes tickets, contest entries, and similar items.
ab. Mailer refuses to accept delivery of the parcel on return.
ac. Mail not bearing the complete names and addresses of the mailer and
addressee, or is undeliverable as addressed to either the addressee or the
mailer.
ad. Event or transportation tickets (e.g., concert, theater, sport, airline, bus, train,
etc.) received after the event date. Such items are insured for loss, but not for
delay or receipt after the event date for which they were purchased unless sent
by Express Mail and the delay is attributable solely to the failure to meet the
guaranteed delivery standard under the terms and conditions for the Express
Mail service selected.
ae. Software installed onto computers that have been lost or damaged.
Domestic Mail Manual • Updated 5-12-08
609
609.5.7
Filing Indemnity Claims for Loss or Damage: Compensation
af. Damaged articles not claimed within the time limits in the Postal Operations
Manual.
ag. Personal time used to make hobby, craft, or similar handmade items.
5.0 Compensation
5.1 Payment Limit
The USPS does not make payment for more than the actual value of the article or,
for bulk insurance, for more than the wholesale cost of the contents to the sender if
a lesser amount. The USPS does not make payment for more than the maximum
amount covered by the fee paid.
5.2 Depreciation
The USPS depreciates a used article either lost or damaged based on the life
expectancy of the article.
5.3 Insufficient Fee
If, through an established error by the USPS, a fee was charged for less than that
required to pay for the amount of insurance coverage requested at the time of
mailing, the sender may pay the difference. Indemnity may be paid within the limit
fixed for the higher fee. This applies only to the insurance fee when the article is
insured. An additional fee may not be paid to register an article previously sent by
insured mail, to buy insurance on mail sent as uninsured registered, or to increase
the indemnity on the registered article. The declared value must already be noted on
Form 3806 or Form 3813-P. Customers must complete all entries on Form 3877 or
facsimile.
5.4 Loss or Total Damage
If the insured, registered, or COD article is lost or the entire contents totally
damaged, the payment includes an additional amount for the postage (not fee) paid
by the sender. Postage for Express Mail is refunded under 604.9.5.
5.5 Dual Claim
If the mailer and the addressee both claim insurance and cannot agree on which
one should receive the payment, any payment due is made to the mailer unless the
claim has already been paid to the addressee upon presentation of the original
mailing receipt.
5.6 Incompetent or Deceased
If the payee is incompetent or deceased, payment is made to the legal
representative. If there is no legal representative, payment can be made at the
discretion of the USPS.
5.7 Recovered Article
If a lost registered, insured, COD, or Express Mail article is recovered after payment
of a claim, the payee may accept the article and reimburse the USPS for the full
amount paid if the article is undamaged. If the article is damaged, has depreciated,
or has missing contents, the payee may accept it and reimburse the USPS in an
amount set by the Consumer Advocate, USPS Headquarters.
Domestic Mail Manual • Updated 5-12-08
609
609.6.1
Filing Indemnity Claims for Loss or Damage: Adjudication of Claims
6.0 Adjudication of Claims
6.1 Initial Adjudication of Claims
The St. Louis Accounting Service Center (ASC) adjudicates and pays or disallows all
domestic claims, except the initial adjudication of domestic retail insured claims for
insurance coverage of $50.00 or less that are not for bulk insured service, and
claims appealed under 6.3. Domestic retail insured claims for insurance coverage of
$50.00 or less, except for bulk insured service, are adjudicated and paid locally at
the post office accepting the claims. Claims for insurance purchased online (through
Click-N-Ship or eBay) up to $500 may be filed online through www.usps.com, and
will be processed and paid through the St. Louis ASC.
6.2 Appealing a Claim Decision
A customer may appeal a claim decision by filing a written appeal within 60 days of
the date of the original decision. Except for domestic retail insured claims for
insurance coverage of $50.00 or less, the customer must send the appeal directly
to Claims Appeals (see 608.8.0 for address). For domestic retail insured claims for
insurance coverage of $50.00 or less, the customer must send the appeal to the
post office where the claim was filed. That post office forwards the appeal to the
manager of Claims Appeals at the St. Louis ASC.
6.3 Final USPS Decision of Claims
If the manager of Claims Appeals at the St. Louis ASC sustains the denial of a claim,
the customer may submit an additional appeal within 60 days for final review and
decision to the Consumer Advocate, USPS Headquarters (see 608.8.0 for address),
who may waive standards in 609 in favor of the customer.
