Claim for Insurance on Household Goods

A civilian Navy employee appealed the denial of his claim for insurance on his household goods being transported incident to his permanent change of duty station. He declared a valuation for the household goods in excess of the minimum amount included at no additional cost in the carrier's rates. In initially denying the claim, GAO pointed out that there was no statute nor regulation which authorizes payment by the Government for insurance costs resulting from an employee's declaration of excess valuation. In seeking a reconsideration, the employee contended that the Navy had to reimburse him for all entitlements accruing to a transferred employee and that the insurance was a standard item which the carrier placed on all shipments to Hawaii. GAO held that the record did not support the employee's contention that the insurance charge was a standard charge placed on all shipments. The denial of the claim was sustained, because the Government was not required nor authorized to reimburse an insurance charge resulting from a voluntary act on the part of the employee.