Skip to main content

Request by German Government for Reimbursement of Fire Insurance Premiums

B-196982 Sep 04, 1980
Jump To:
Skip to Highlights

Highlights

The Department of the Air Force asked GAO to reconsider its denial of the German Government's claim for reimbursement of fire insurance premium payments. The basis of the denial was that the claim was barred by the 6-year statute of limitations applicable to claims against the United States. The claim arose out of a Supplementary Agreement to the NATO Status of Forces Agreement. The agreement provides that U.S. Forces are not exempt from costs of compulsory insurance against fire and other damages, insofar as the Federal Republic of Germany is obligated under German law to pay for such insurance. Pursuant to this agreement, the German Government submitted to the Air Force invoices for fire insurance premiums for an air base and housing area for 12 years. The Air Force paid only the portion of bill for the period which would not fall within the 6-year statute of limitations. The remainder of the claim was submitted to GAO for settlement. In denying the claim initially, the GAO Claims Division acted on the assumption that a claim for reimbursement of the insurance premiums attributable to a particular year must have been accrued in that year. The agreement provided that payment would be made after invoices had been submitted. The agreement did not specify the time for the submission of invoices, and because of the complexity of determining which buildings were covered by the agreement, invoices were not completed until 3 years after the agreement had been signed. Since the claim did not accrue until the invoices were submitted, the claim was not barred by the 6-year statute of limitations. The claim is a valid obligation of the United States, and an appropriate settlement will be issued.

Downloads

GAO Contacts

Office of Public Affairs