Obtaining full replacement value on PCS move-damaged property
August 7, 2009
At one time, if a carrier lost or destroyed something during a permanent change of station move, military service members, Department of Defense Families and Department of Defense civilian employees were compensated based on the depreciated value or fair market value of the item.
This all changed in fall 2007 when the Department of Defense implemented Full Replacement Value Protection.
Under FRV, a claimant is now eligible, at no extra cost, for the full replacement value of destroyed (i.e., the repair cost exceeds the replacement cost) or lost items.
A claimant must first complete and submit the DD Form 1840R ("pink form") to the Transportation Service Provider within 75 days after delivery or to the nearest Military Claims Office within 70 days after delivery. This form serves only as notice to the TSP of loss or damage; it is not the actual claim. The claim itself must be filed by the claimant directly with the TSP, rather than with the MCO, within 9 months of delivery. If a claimant files the claim with the TSP after 9 months, but before the 2-year time limit for filing, the TSP is only accountable for the depreciated value of any lost or destroyed items.
Once filed, the TSP will attempt to settle the claim by replacing or by paying the FRV price for items that have been lost or destroyed. For those items that are damaged, the carrier has the option of repairing them or making a monetary settlement for repair costs. If, however, the TSP makes an offer on the claim that is not satisfactory, denies the claim entirely, or does not respond within 30 days, the claimant may reassign the claim to the MCO. The MCO will attempt to recover FRV from the TSP. If the MCO recovers FRV, the MCO will then pay the claimant the difference between the depreciated value already paid and the FRV.
Example of the benefits of FRV:
A Soldier discovers after a move that her 15-year old armoire was damaged during shipment. The FRV is $1,000. The depreciated value is $600. The repair cost is $1,200.
Prior to the implementation of FRV Protection, the MCO would have paid the claimant the depreciated value of the armoire, or $600. Under FRV, the carrier would now offer the claimant $1,000.
For more information on FRV Protection, visit the Military Surface Deployment and Distribution Command Web site, www.sddc.army.mil or contact the Office of the Aberdeen Proving Ground Staff Judge Advocate Claims Office, 410-278-1583.