B-181193, JUN 25, 1974

B-181193, JUN 25, 1974

DEPARTMENT OF COMMERCE EMPLOYEE ON TEMPORARY DUTY IN EUROPE PURCHASED COLLISION DAMAGE WAIVER INSURANCE INCIDENT TO RENTING A CAR FOR WHICH HE SEEKS REIMBURSEMENT ON THE GROUNDS THAT CAR RENTALS IN FOREIGN COUNTRIES SHOULD NOT BE INCLUDED IN FEDERAL TRAVEL REGULATIONS, FPMR 101-7, SECTION 1-3.2, BECAUSE DEDUCTIBLE AMOUNT IS HIGHER THAN IN UNITED STATES AND EMPLOYEE'S MISSION COULD BE IMPERILED IN CASE OF ACCIDENT WITH LESS THAN FULL COVERAGE. REIMBURSEMENT IS DENIED BECAUSE THERE ARE NO EXCEPTIONS IN THE REGULATIONS WHICH ARE STATUTORY AND CANNOT BE WAIVED AND BECAUSE THE EMPLOYEE HAS PRESENTED NO EVIDENCE OF ANY LOCAL STATUTE OR REGULATION REQUIRING A FOREIGN NATIONAL TO PURCHASE COLLISION DAMAGE WAIVER.

DEPT OF COMMERCE:

THIS MATTER IS BEFORE US BASED UPON A REQUEST FOR AN ADVANCE DECISION FROM A CERTIFYING OFFICER OF THE NATIONAL BUREAU OF STANDARDS, U.S. DEPARTMENT OF COMMERCE, REGARDING THE PROPRIETY OF REIMBURSING THE COST OF COLLISION DAMAGE WAIVER INSURANCE PURCHASED BY MR. PAUL MCQUATE, INCIDENT TO THE RENTAL OF AN AUTOMOBILE WHILE ON TEMPORARY DUTY IN EUROPE.

BY TRAVEL ORDER NO. 400802, DATED JULY 18, 1973, MR. MCQUATE WAS TO TRAVEL, ON TEMPORARY DUTY, TO VARIOUS U.S. AIR FORCE AND ARMY INSTALLATIONS IN THE UNITED KINGDOM, THE FEDERAL GERMAN REPUBLIC, AND ITALY. ON AUGUST 8, 1973, HE SIGNED A RENTAL CONTRACT FOR A CAR TO BE DRIVEN IN GERMANY. AT THAT TIME, HE DID NOT PURCHASE THE COLLISION DAMAGE WAIVER INSURANCE. ON AUGUST 12 HE WAS JOINED BY HIS SUPERVISOR, MR. A.P. BARSIS, WHO WAS TO TRAVEL WITH MR. MCQUATE FOR THE REMAINDER OF HIS TIME IN EUROPE. ON AUGUST 18 MR. BARSIS WAS ADDED TO THE RENTAL AGREEMENT AS AN "EXTRA DRIVER."

MR. MCQUATE AND MR. BARSIS WERE TO LEAVE FOR ITALY ON AUGUST 22. IN MR. MCQUATE'S OPINION, IT WOULD HAVE BEEN IMPRUDENT TO DRIVE A RENTAL CAR IN ITALY WITHOUT FULL COLLISION COVERAGE. HE ASCERTAINED THAT IT WOULD BE LESS EXPENSIVE TO RETROACTIVELY PURCHASE THE COLLISION DAMAGE WAIVER FOR THE ENTIRE RENTAL PERIOD THAN IT WOULD BE TO CLOSE OUT THE EXISTING CONTRACT AND OPEN A NEW ONE WITH THE COLLISION DAMAGE WAIVER. THIS WAS DONE ON ABOUT AUGUST 22.

WHEN MR. MCQUATE SUBMITTED HIS TRAVEL VOUCHER, HE WAS DENIED REIMBURSEMENT OF THE COST OF THE COLLISION DAMAGE WAIVER INSURANCE. THE CERTIFYING OFFICER CITED PARAGRAPH 1-3.2.C OF THE FEDERAL TRAVEL REGULATIONS, FPMR 101-7, MAY 1973 WHICH PROVIDES:

"IN CONNECTION WITH THE RENTAL OF VEHICLES FROM COMMERCIAL SOURCES, THE GOVERNMENT WILL NOT PAY OR REIMBURSE EMPLOYEES FOR THE COST OF THE COLLISION DAMAGE WAIVER OR COLLISION DAMAGE INSURANCE AVAILABLE IN COMMERCIAL RENTAL CONTRACTS FOR AN EXTRA FEE. THE WAIVER OR INSURANCE REFERRED TO IS THE TYPE OFFERED A RENTER TO RELEASE HIM FROM LIABILITY FOR DAMAGE TO THE RENTED VEHICLE IN AMOUNTS UP TO THE AMOUNT DEDUCTIBLE (USUALLY $100) ON THE INSURANCE INCLUDED AS A PART OF THE RENTAL CONTRACT WITHOUT ADDITIONAL CHARGE. UNDER DECISIONS OF THE COMPTROLLER GENERAL, THE AGENCY IN APPROPRIATE CIRCUMSTANCES IS AUTHORIZED TO PAY FOR DAMAGE TO THE RENTED VEHICLE UP TO THE DEDUCTIBLE AMOUNT AS CONTAINED IN THE RENTAL CONTRACT SHOULD THE RENTED VEHICLE BE DAMAGED WHILE BEING USED FOR OFFICIAL BUSINESS. THE COST OF PERSONAL ACCIDENT INSURANCE IS A PERSONAL EXPENSE AND IS NOT REIMBURSABLE."

MR. MCQUATE CONTENDS THIS PROVISION SHOULD NOT APPLY WHEN A VEHICLE HAS BEEN LEASED IN A FOREIGN COUNTRY. HE STATES TWO REASONS FOR THIS POSITION. FIRST, HE CONTENDS THAT THE "DEDUCTIBLE AMOUNT" IN EUROPE, IS NORMALLY HIGHER THAN THE STANDARD $100 CITED IN THE REGULATIONS, WHICH AMOUNT IS ALMOST UNIVERSAL IN THE UNITED STATES. MR. MCQUATE ALLEGES THAT THE DEDUCTIBLE CAN BE AS HIGH AS $250 - $300. IN MR. MCQUATE'S CASE, THE DEDUCTABLE WAS DM 500, WHICH WAS, AT THE RATE OF EXCHANGE THEN PREVAILING, ABOUT $215. SECONDLY, HE CONTENDS THAT THE PURPOSE AND VALUE OF A MISSION COULD BE IMPAIRED IF A GOVERNMENT EMPLOYEE WERE INVOLVED IN AN ACCIDENT AND HAD TO REMAIN AT A CERTAIN LOCATION DURING AN INVESTIGATION OR HAD TO POST A BOND OF SOME TYPE TO PERMIT FURTHER TRAVEL. HOWEVER, MR. MCQUATE HAS PRESENTED NO EVIDENCE IN SUPPORT OF THE SECOND PROPOSITION. HE HAS CITED NO STATUTE OR REGULATION EITHER REQUIRING A FOREIGN NATIONAL TO REMAIN IN A STATED LOCATION FOLLOWING AN ACCIDENT, OR, IN THE ALTERNATIVE, REQUIRING A FOREIGN NATIONAL TO PURCHASE THE COLLISION DAMAGE WAIVER. FROM THE RENTAL CONTRACT INCLUDED WITH THE SUBMISSION, IT APPEARS THAT THE PURCHASE OF THE COLLISION DAMAGE WAIVER IS IN FACT OPTIONAL. IN THAT CONNECTION WE NOTE THAT THE DAMAGE WAIVER RELATES ONLY TO DAMAGE TO THE RENTED VEHICLE. THUS, WAIVER OF THIS COVERAGE WOULD NOT AFFECT THE EMPLOYEE'S LIABILITY FOR PERSONAL INJURY OR PROPERTY DAMAGE RESULTING FROM AN ACCIDENT.

THE FEDERAL TRAVEL REGULATIONS, FPMR 101-7, ARE STATUTORY REGULATIONS THAT MAY NOT BE WAIVED. THE LANGUAGE OF SECTION 1-3.2.C IS CLEAR AND NO EXCEPTION FOR FOREIGN TRAVEL IS CREATED. THE FACT THAT THE CONTROLLING REGULATION PARENTHETICALLY IDENTIFIES THE AMOUNT COVERED BY THE WAIVER AS "(USUALLY $100)" BUT THE AMOUNT INVOLVED IN THIS CASE EXCEEDS $200 IS NOT CONSIDERED TO MAKE THE REGULATION INAPPLICABLE SINCE THE DAMAGE WAIVER IN THIS CASE IS THE TYPE OF DAMAGE WAIVER TO WHICH THE REGULATION APPLIES. IN THE ABSENCE OF EVIDENCE TO INDICATE THAT MR. MCQUATE WAS COMPELLED BY SOME LOCAL STATUTE OR REGULATION TO PURCHASE THE COLLISION DAMAGE WAIVER INSURANCE BECAUSE HE WAS A FOREIGN NATIONAL, HIS RECLAIM VOUCHER MAY NOT BE CERTIFIED FOR PAYMENT.

WE NOTE THAT BECAUSE OF A CLERICAL OR COMPUTER ERROR, ONLY $5.70, INSTEAD OF THE CORRECT AMOUNT OF $57.14, WAS DISALLOWED. THIS ERROR SHOULD BE CORRECTED SO THAT THE PROPER AMOUNT MAY BE RECOVERED.