B-162186, AUGUST 30, 1967, 47 COMP. GEN. 145

B-162186, AUGUST 30, 1967, 47 COMP. GEN. 145

VEHICLES - RENTAL - INSURANCE AN EMPLOYEE WHO INCIDENT TO OFFICIAL BUSINESS RENTED AN AUTOMOBILE WHICH HE OBTAINED BY USE OF A GOVERNMENT CREDIT CARD, AND WHO UNDER THE RENTAL AGREEMENT IS REQUIRED TO PAY $100 FOR DAMAGES TO THE VEHICLE WHICH OCCURRED WITHOUT NEGLIGENCE ON HIS PART, MAY BE REIMBURSED THE EXPENDITURE ABSENT AN ADMINISTRATIVE REQUIREMENT THAT HE PURCHASE A COLLISION DAMAGE WAIVER, AND ON THE BASIS OF THE GENERAL POLICY OF THE GOVERNMENT NOT TO CARRY INSURANCE, AND IN THE ABSENCE OF ADMINISTRATIVE INSTRUCTIONS IN THE MATTER, THE EMPLOYEE IS NOT CONSIDERED TO HAVE FAILED TO USE THE REASONABLE DISCRETION CONTEMPLATED IN 35 COMP. GEN. 553 WHEN HE DID NOT APPLY FOR THE DAMAGE WAIVER.

TO THE COMPTROLLER OF THE NAVY, AUGUST 30, 1967:

REFERENCE IS MADE TO YOUR FIRST INDORSEMENT OF AUGUST 2, 1967, AND ENCLOSURES, REQUESTING AN ADVANCE DECISION AS TO THE LEGALITY FOR PAYMENT OF A CLAIM FOR $100 SUBMITTED BY MR. ELDO L. THROCKMORTON, JR.

MR. THROCKMORTON IS A CIVILIAN EMPLOYEE OF THE NAVAL ORDNANCE STATION AT INDIAN HEAD, MARYLAND, AND THE AMOUNT CLAIMED BY HIM REPRESENTS THE AMOUNT HE WAS REQUIRED TO PAY FROM HIS PERSONAL FUNDS IN CONNECTION WITH THE USE OF AN AUTOMOBILE WHICH HE HAD RENTED IN THE PERFORMANCE OF OFFICIAL BUSINESS.

THE RECORD DISCLOSES THAT MR. THROCKMORTON HAD BEEN ISSUED TRAVEL ORDERS FOR THE PURPOSE OF RECRUITING PROFESSIONAL PERSONNEL AT VARIOUS EDUCATIONAL INSTITUTIONS IN THE MIDWEST DURING THE PERIOD DECEMBER 7 11, 1966. IN ORDER TO EXPEDITE HIS ASSIGNMENT HE WAS AUTHORIZED CAR RENTAL SERVICE AS NECESSARY AND WAS FURNISHED AN AVIS RENT-A-CAR CREDIT CARD. DECEMBER 9, 1966, WHILE TRAVELING BY AVIS RENTAL CAR NEAR KANSAS CITY, MISSOURI, THE VEHICLE, WITHOUT NEGLIGENCE ON THE PART OF MR. THROCKMORTON, COLLIDED WITH A DEER AND DAMAGES TO THE CAR AMOUNTED TO $430.68.

MR. THROCKMORTON HAD NOT PURCHASED THE COLLISION DAMAGE WAIVER ADJUSTMENT AND, IN ACCORDANCE WITH THE RENTAL AGREEMENT, HE WAS CALLED ON TO REIMBURSE AVIS FOR $100 OF THE DAMAGES TO THE VEHICLE. MR. THROCKMORTON WAS ADMINISTRATIVELY ADVISED TO PAY THE AMOUNT REQUESTED BY AVIS PENDING OUR DECISION. MR. THROCKMORTON, IN A STATEMENT ACCOMPANYING THE VOUCHER, STATES THAT HE HAD NEVER PURCHASED SUCH WAIVERS ON EARLIER OFFICIAL TRIPS AND HAD NOT BEEN ADMINISTRATIVELY INSTRUCTED TO DO SO.

IN OUR DECISION OF APRIL 5, 1956, PUBLISHED IN 35 COMP. GEN. 553, WE HELD THAT AN EMPLOYEE WHO HAD PURCHASED A COLLISION DAMAGE WAIVER EXERCISED REASONABLE DISCRETION IN THE MATTER AND WAS ENTITLED TO REIMBURSEMENT FOR THE COST OF THE WAIVER. NOTHING IN THAT DECISION OR IN THE STANDARDIZED TRAVEL REGULATIONS SPECIFICALLY REQUIRED AN EMPLOYEE TO PURCHASE SUCH WAIVER WHEN USING A RENTED CAR ON OFFICIAL BUSINESS. AS A MATTER OF FACT AT LEAST ONE FEDERAL AGENCY HAS ISSUED REGULATIONS TO THE EFFECT THAT RENTALS OF AUTOMOBILES SHALL BE FOR ITS ACCOUNT; THAT THE AGENCY DOES NOT DESIRE OR AUTHORIZE ANY COLLISION INSURANCE TO BE PURCHASED ON ITS BEHALF; AND THAT NO FEES OR CHARGES FOR COLLISION INSURANCE WILL BE ALLOWED.

SINCE THE RENTED VEHICLE HERE INVOLVED WAS OBTAINED BY USE OF A CREDIT CARD FURNISHED BY THE GOVERNMENT, THE VEHICLE CLEARLY WAS OBTAINED FOR THE GOVERNMENT'S ACCOUNT AND SINCE THE GENERAL POLICY OF THE GOVERNMENT IS NOT TO CARRY INSURANCE WE CANNOT SAY THAT MR. THROCKMORTON, IN THE ABSENCE OF ANY ADMINISTRATIVE INSTRUCTIONS REGARDING THE MATTER, FAILED TO USE REASONABLE DISCRETION WHEN HE DID NOT APPLY FOR THE DAMAGE WAIVER.

ACCORDINGLY, IT IS OUR VIEW THAT MR. THROCKMORTON IS ENTITLED TO REIMBURSEMENT AS CLAIMED. THE VOUCHER, TOGETHER WITH RELATED DOCUMENTS, ARE RETURNED HEREWITH.