[Code of Federal Regulations]
[Title 49, Volume 4]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR370.9]

[Page 806]
 
                        TITLE 49--TRANSPORTATION
 
        CHAPTER III--FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION,
                      DEPARTMENT OF TRANSPORTATION
 
PART 370--PRINCIPLES AND PRACTICES FOR THE INVESTIGATION AND VOLUNTARY 
DISPOSITION OF LOSS AND DAMAGE CLAIMS AND PROCESSING SALVAGE--Table of 
Contents
 
Sec. 370.9  Disposition of claims.

    (a) Each carrier subject to 49 U.S.C. subtitle IV, part B which 
receives a written or electronically transmitted claim for loss or 
damage to baggage or for loss, damage, injury, or delay to property 
transported shall pay, decline, or make a firm compromise settlement 
offer in writing or electronically to the claimant within 120 days after 
receipt of the claim by the carrier; Provided, however, That, if the 
claim cannot be processed and disposed of within 120 days after the 
receipt thereof, the carrier shall at that time and at the expiration of 
each succeeding 60-day period while the claim remains pending, advise 
the claimant in writing or electronically of the status of the claim and 
the reason for the delay in making final disposition thereof and it 
shall retain a copy of such advice to the claimant in its claim file 
thereon.
    (b) When settling a claim for loss or damage, a common carrier by 
motor vehicle of household goods as defined in Sec. 375.1(b)(1) of this 
chapter shall use the replacement costs of the lost or damaged item as a 
base to apply a depreciation factor to arrive at the current actual 
value of the lost or damaged item: Provided, That where an item cannot 
be replaced or no suitable replacement is obtainable, the proper measure 
of damages shall be the original costs, augmented by a factor derived 
from a consumer price index, and adjusted downward by a factor 
depreciation over average useful life.