B-118232, FEBRUARY 23, 1954, 33 COMP. GEN. 370

B-118232, FEBRUARY 23, 1954, 33 COMP. GEN. 370

POST OFFICE DEPARTMENT - MAILS - INSURED - INDEMNITY PAYMENTS THE SENDER OF A PARCEL POST PACKAGE CONTAINING MERCHANDISE VALUED AT $198, WHO PAID INSURANCE FEE FIXED BY SECTION 8 OF THE ACT OF OCTOBER 30, 1951, TO COVER INDEMNIFICATION UP TO $100, BUT WHO WAS ISSUED OBSOLETE RECEIPT FORM WHICH WAS BASED ON LAW IN EFFECT PRIOR TO JANUARY 1, 1952, AND SHOWED THAT FEE PAID TO INSURE SUCH PARCEL COVERED INDEMNITY UP TO $200, MAY NOT BE PERMITTED TO PAY ADDITIONAL FEE AFTER LOSS OF PACKAGE FOR EXPRESS PURPOSES OF INCREASING AMOUNT OF INDEMNITY TO BE PAID BY THE GOVERNMENT, NOTWITHSTANDING ERROR OF POSTAL EMPLOYEE IN ISSUING OBSOLETE RECEIPT.

ACTING COMPTROLLER GENERAL WEITZEL TO THE POSTMASTER GENERAL, FEBRUARY 23, 1954:

REFERENCE IS MADE TO YOUR LETTER OF JANUARY 5, 1954, CONCERNING A CLAIM FOR INDEMNITY COVERING INSURED PARCEL NO. 3105, MAILED BY MRS. EVA STANISH, AT NORTH ARLINGTON BRANCH, ARLINGTON, NEW JERSEY, ON JANUARY 20, 1953, ADDRESSED TO CAPTAIN THEODORE J. STANISH, MPC, 8232 AU, APO 613, C/O POSTMASTER, SAN FRANCISCO, CALIFORNIA.

YOU STATE THAT A FEE OF $0.30 WAS PAID ON THE PARCEL AND THAT THE STATUTORY INDEMNITY LIMIT OF $100 FIXED BY LAW FOR SUCH INSURANCE FEE HAS BEEN PAID BY THE POSTMASTER AT NEWARK, NEW JERSEY. HOWEVER, IT IS STATED THAT AN OBSOLETE RECEIPT FORM SHOWING THAT A FEE OF $0.30 COVERED INDEMNITY UP TO $200 UNDER THE LAW IN EFFECT PRIOR TO JANUARY 1, 1952, WAS ISSUED TO THE SENDER AT THE TIME THE PARCEL WAS MAILED, THUS RAISING A PRESUMPTION OF INTENT OF THE SENDER TO INSURE THE PARCEL FOR $198, THE AMOUNT CLAIMED. YOU REQUEST A DECISION AS TO THE PROPRIETY OF COLLECTING AN ADDITIONAL FEE OF $0.05 FROM THE SENDER, THUS MAKING A TOTAL FEE OF $0.35 WHICH WOULD PERMIT AN INDEMNITY IN THE TOTAL AMOUNT FOR $198.

SECTION 8 OF THE ACT OF OCTOBER 30, 1951, 65 STAT. 675, PROVIDES:

THE FEES FOR INSURANCE, WHICH SHALL BE IN ADDITION TO THE REGULAR POSTAGE, AND THE LIMITS OF INDEMNITY THEREFOR WITHIN THE MAXIMUM INDEMNITY PROVIDED BY THIS SECTION, SHALL BE AS FOLLOWS: 5 CENTS FOR INDEMNIFICATION NOT EXCEEDING $5; 10 CENTS FOR INDEMNIFICATION EXCEEDING $5 BUT NOT EXCEEDING $10; 15 CENTS FOR INDEMNIFICATION EXCEEDING $10 BUT NOT EXCEEDING $25; 20 CENTS FOR INDEMNIFICATION EXCEEDING $25 BUT NOT EXCEEDING $50; 30 CENTS FOR INDEMNIFICATION EXCEEDING $50 BUT NOT EXCEEDING $100; 35 CENTS FOR INDEMNIFICATION EXCEEDING $100 BUT NOT EXCEEDING $200.

THE SPECIFIC TERMS OF THIS SECTION FIXING THE FEES AND LIMITS OF INDEMNITY FOR INSURED PARCELS WERE MATTERS OF PUBLIC RECORD FOR MORE THAN 12 MONTHS PRIOR TO THE SENDING OF THE PARCEL. THE CLAIMANT WAS CHARGED WITH CONSTRUCTIVE NOTICE OF THE AMOUNT OF THE FEES PROPERLY CHARGEABLE AND WAS NOT ENTITLED TO RELY UPON THE STATEMENTS AND ACTS OF THE POSTAL EMPLOYEE. FEDERAL CROP INSURANCE CORPORATION V. MERRILL, 332 U.S. 380.

AS STATED IN DECISION OF AUGUST 19, 1935, A-62482, REFERRED TO IN YOUR LETTER, THE PRESUMPTION OF MISTAKE IN VALUATION OF THE INSURED PARCEL DOES NOT ARISE WHERE A FEE PRESCRIBED BY LAW WAS COLLECTED AND MUST BE HELD CONCLUSIVE EVIDENCE OF THE MAXIMUM VALUATION OF THE INSURED PACKAGE. MOREOVER, THERE IS NOT INVOLVED HERE THE MATTER OF INITIAL COLLECTION OF A FEE NOT PRESCRIBED BY PRIOR OR CURRENT LAW SUCH AS WAS TRUE IN THE DECISION DATED JULY 12, 1937, A-86722, ALSO REFERRED TO IN YOUR LETTER. CONSEQUENTLY, THE SUBSEQUENT CHARGING AND COLLECTION OF AN ADDITIONAL FEE OF $0.05 IN THIS CASE FOR THE EXPRESS PURPOSE OF INCREASING THE AMOUNT OF THE INDEMNITY TO BE PAID BY THE GOVERNMENT CLEARLY IS NOT AUTHORIZED, NOTWITHSTANDING THE UNAUTHORIZED USE OF THE OBSOLETE RECEIPT FORM.

THE ENCLOSURES TRANSMITTED WITH YOUR LETTER OF JANUARY 5 ARE RETURNED HEREWITH AS REQUESTED.