[Code of Federal Regulations]

[Title 49, Volume 5]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 49CFR370.9]



[Page 61]

 

                        TITLE 49--TRANSPORTATION

 

                      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.