Until this year, military members and Department of Defense civilian employees who had property loss or damage during a government funded move was only reimbursed for the value of the property, after depreciation was computed. This will change with the introduction of the Full Replacement Value (FRV) Protection Program.
Under the program, the government is no longer responsible for paying such claims. Claims are paid directly by the contractor who performed the move. Contractors are responsible for the greater of $5,000 per shipment, or $4 times the net weight of the shipment, in pounds, up to $50,000 under this new program authorized by Congress.
Under the new program, the moving contractor will be responsible for obtaining all repair and replacement costs. The provider will also pay FRV cost on items that need replacing or have been lost or destroyed.
FRV coverage will apply to personal-property shipments with a pickup date on or after:
- Oct. 1, 2007 for international shipments to and from outside the Continental United States,
- Nov. 1, 2008 for domestic shipments within CONUS,
- March 1, 2008 for non-temporary storage, and
- March 1, 2008 for local moves and Direct Procurement Method shipments.
To receive FRV, servicemembers must file their claim with the moving contractor instead of the Military Claims Office (MCO). As before, servicemembers will record loss or damage discovered after delivery on DD Forms 1840 or 1840R, and submit forms to the moving contractor within 75 days of delivery. The contractor is responsible for providing the forms upon delivery of the property. In order to be eligible under the FVR program, the forms must be postmarked within 75 days of delivery of the property.
After the forms are received, the provider has the right to inspect the damaged items.
Servicemembers must then file a claim with the TSP within nine months of delivery. If they miss that deadline, they are still eligible for depreciated value, as in the previous program, for up to two years from delivery.
If the provider denies the customer's full claim, makes an offer on the claim that is not acceptable or does not respond within 30 days, the customer may transfer the claim to the MCO.
If the customer transfers the claim to the MCO within nine months of delivery, the claims office will only be responsible for depreciated replacement costs. The claims office will then attempt to recover FRV from the provider. If successful in recovering FRV, the claims office will then pay the customer the difference between the depreciated cost already paid and the FRV cost.
For complete details about the new program, see the FRV information pages on the FRV guidelines on the Military Surface Deployment and Distribution Command website.