[Code of Federal Regulations]
[Title 44, Volume 1]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 44CFR11.75]

[Page 119-120]
 
              TITLE 44--EMERGENCY MANAGEMENT AND ASSISTANCE
 
 CHAPTER I--FEDERAL EMERGENCY MANAGEMENT AGENCY, DEPARTMENT OF HOMELAND 
                                SECURITY
 
PART 11_CLAIMS--Table of Contents
 
                 Subpart D_Personnel Claims Regulations
 
Sec.  11.75  Claims involving carriers and insurers.

    In the event the property which is the subject of a claim was lost 
or damaged while in the possession of a carrier or was insured, the 
following procedures will apply:
    (a) Whenever property is damaged, lost, or destroyed while being 
shipped pursuant to authorized travel orders, the owner must file a 
written claim for reimbursement with the last commercial carrier known 
or believed to have handled the goods, or the carrier known to be in 
possession of the property when the damage or loss occurred, according 
to the terms of its bill of lading or contract, before submitting a 
claim against the Government under this subpart.
    (1) If more than one bill of lading or contract was issued, a 
separate demand should be made against the last carrier on each such 
document.
    (2) The demand should be made within the time limit provided in the 
policy and prior to the filing of a claim against the Government.
    (3) If it is apparent that the damage or loss is attributable to 
packing, storage, or unpacking while in the custody of the Government, 
no demand need be made against the carrier.
    (b) Whenever property which is damaged, lost, or destroyed incident 
to the claimant's service is insured in whole or in part, the claimant 
must make demand in writing against the insurer for reimbursement under 
terms and conditions of the insurance coverage, prior to the filing of 
the concurrent claim against the Government.
    (c) Failure to make a demand on a carrier or insurer or to make all 
reasonable efforts to protect and prosecute rights available against a 
carrier or insurer and to collect the amount recoverable from the 
carrier or insurer may result in reducing the amount recoverable from 
the Government by the maximum amount which would have been recoverable 
from the carrier or insurer, had the claim been timely or diligently 
prosecuted. However, no deduction will be made where the circumstances 
of the claimant's service preclude reasonable filing of such a claim or 
diligent prosecution, or the evidence indicates a demand was 
impracticable or would have been unavailing.
    (d) Following the submission of the claim against the carrier or 
insurer, the claimant may immediately submit a claim against the 
Government in accordance with the provisions of this subpart, without 
waiting until either final approval or denial of the claim is made by 
the carrier or insurer.
    (1) Upon submission of a claim to the Government, the claimant must 
certify in the claim that no recovery (or the amount of recovery) has 
been gained from a carrier or insurer, and enclose all correspondence 
pertinent thereto.
    (2) If the carrier or insurer has not taken final action on the 
claim against them, by the time the claimant submits a claim to the 
Government, the claimant will immediately notify them to address all 
correspondence in regard to the claim to him/her, in care of the General 
Counsel of FEMA.
    (3) The claimant shall timely advise the General Counsel in writing, 
of any action which is taken by the carrier or insurer on the claim. On 
request, the claimant also will furnish such evidence as may be required 
to enable the United States to enforce the claim.
    (e) When a claim is paid by FEMA, the claimant will assign to the 
United States, to the extent of any payment on the claim accepted by 
claimant, all rights, title, and interest in any claim against the 
carrier, insurer, or other party arising out of the incident on which 
the claim against the Government is based. After payment of the

[[Page 120]]

claim by the Government, the claimant will, upon receipt of any payment 
from a carrier or insurer, pay the proceeds to the United States to the 
extent of the payment received by the claimant from the United States.
    (f) When a claimant recovers for the loss from the carrier or 
insurer before the claim against the Government under this subpart is 
settled, the amount or recovery shall be applied to the claim as 
follows:
    (1) When the amount recovered from a carrier, insurer, or other 
third party is greater than or equal to the claimant's total loss as 
determined under this subpart, no compensation is allowable under this 
subpart.
    (2) When the amount recovered is less than such total loss, the 
allowable amount is determined by deducting the recovery from the amount 
of such total loss;
    (3) For the purpose of this paragraph (f) the claimant's total loss 
is to be determined without regard to the $25,000 maximum set forth 
above. However, if the resulting amount, after making this deduction, 
exceeds $25,000, the claimant will be allowed only $25,000.