Claims - Procedure.

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Every motor carrier of household goods, upon receipt of a claim in writing for loss of or damage to cargo during transportation, some portion of which was performed by that carrier, regardless of the form in which the claim is presented, shall:

1. Acknowledge receipt of the claim in writing within thirty (30) days after receipt thereof by the motor carrier;

2. Commence an investigation in good faith to determine whether the carrier acknowledges or denies liability for the loss or damage;

3. Either pay the claim in full, or as agreed to by mutual compromise, or deny liability for loss or damage, in writing, within ninety (90) days after receipt of the original claim by the carrier. Such action shall not be withheld or postponed pending receipt of payment or acknowledgment of liability from connecting carriers; and

4. Acknowledgment of liability shall be accompanied by payment in full for the value of property lost or damaged except where subject to limited liability or released value. When a shipper, without prior approval from the consignee, elects to release a shipment at a value less than the full value of the property shipped, in the event of loss or damage, the shipper will indemnify to the consignee the difference between the released or limited valuation paid by the carrier and the full value of the property shipped. A carrier's liability is limited to the released value or limited liability as agreed as stated in the bill of lading covering the shipment.

Added by Laws 1982, c. 24, § 2, operative Oct. 1, 1982. Amended by Laws 1995, c. 143, § 23, eff. Nov. 1, 1995; Laws 2009, c. 183, § 9, eff. Nov. 1, 2009.


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