Moving Business Network - Learn from Industry Veterans

Several recent changes regarding military claims have recently been implemented thus in turn affecting every moving van line claims departments. As of July of this year, the Defense Department’s Surface Deployment and Distribution Command (SDDC) succeeded in their attempts to convert industry claims and military claims into one document, thus saving a lot of hassle and confusion. Here are some of the changes that will be affecting the way your claims department handles military claims:

• High Value/High Risk Items– Added protection for both the shipping provider as well as the customer by adding the phrase, “not limited to”; which in turn extends the high val. protection within the means of any item that is worth more than $100/lb. Whereas this was once an exclusive list which included protection for only the items listed.
• Notice of Loss and Damage- The Transportation Service Provider (TSP) is legally obligated to send a notice to the Defense Personal Property’s (DPP) computer system within 3 days of receiving a claim. If TSP fails to do so within the 3 day limit, the customer’s 75 day period will not start until the information is noted.
• “Horse-Trading”- New verbiage which was formerly confusing and difficult to understand, now is clearing the air in regards the prevention of TSP’s from bring able to make offers base upon contingents regarding the customer’s acceptance of items on their claim. The information is now clearly listed and provided giving specifics for every requirement, though the customer still must agree to all terms before the claim can fully be settled.
• Salvage- The new rule of salvage states that a claims customer can not simply settle for the previous 75% of their full replacement value for their items, while also getting to keep the original item. If the customer chooses to keep the original item, TSP is then allowed to make any offer they deem reasonable. Including appearance allowances.
• Sets and Pairs- When one item of a set or pair is damaged TSP is legally required to replace the entire set/pair, if just the one can not be replaced. If the customer refuses to salvage the item, TSP can then go directly to MCO.
• MCO Requirements Updates- MCO must ask TSP for the complete set of information before settling a claim with their customer. Which in turn allows MCO to hear both sides of the story before paying or settling their customer claims.

While there have been disputes regarding some of the new verbiage, and new rules, over all it seems as if all the steps are pointing in the right direction, though it make take some time for all the errors to be resolved correctly and efficiently.