Compensation for Loss, Damage or Destruction of Personal Property

1. Law
2. Tennessee Code
3. Public Finances
4. Board of Claims
5. Establishment and Operation of Board
6. Compensation for Loss, Damage or Destruction of Personal Property

1. 1. The state shall compensate state employees for the loss, damage or destruction of personal property which is not otherwise compensable which occurs in the course of employment and which is required by the state to be used in the course of employment.
   2. For purposes of this section, a motor vehicle shall be considered required by the state to be used in the course of employment only if:
      1. The employee was reimbursed for mileage by the state for use of such motor vehicle at the time of the incident giving rise to the claim; or
      2. The employee was authorized to use a rental motor vehicle paid for by the state at the time of the incident giving rise to the claim.
   3. The requirement that the employee's personal property be required by the state to be used in the course of employment shall be waived if:
      1. The loss, damage or destruction resulted from an assault and battery upon the state employee;
      2. The loss, damage or destruction occurred while the employee was performing duties outside the normal scope of such employee's employment at the direction of an immediate supervisor; or
      3. The loss, damage or destruction occurred as a result of a special hazard of the employee's employment which is not encountered by the general public.
2. Notwithstanding subsection (a), the state shall not compensate state employees for the loss, damage or destruction of personal property if:
   1. The loss, damage or destruction resulted from an act of God or natural disaster;
   2. The loss, damage or destruction of personal property which is not a motor vehicle resulted from the employee's negligence;
   3. The loss, damage or destruction of personal property which is a motor vehicle resulted from the employee's gross negligence; or
   4. The loss, damage or destruction represents normal wear and tear of personal property.
3. In cases where the employee has the benefit of insurance coverage for the personal property, the employee shall not be compensated by the state unless the employee has attempted to obtain compensation from such insurer. The state shall compensate the employee only to the extent the employee is not compensated by the insurer.
4. In cases where the loss, damage or destruction is to a motor vehicle and the employee does not have the benefit of insurance coverage for the motor vehicle, the employee shall not be compensated by the state in an amount in excess of five hundred dollars ($500).
5. The burden shall be upon the employee to prove the extent of the loss, damage or destruction of personal property and the failure of an insurer to compensate for such loss, damage or destruction. The state shall only be responsible for compensating employees to the extent that such proof is submitted.

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