Railway Claims & Handling Procedures

• Claims and Refunds Branches should be organized for prompt claim settlement and prevention.
• Claims/Refunds Officers should educate their office and outdoor staff.
• Claims settling authorities can settle loss, damage claims, etc.,

Monetary Power for Compensation Claims

• Authority: Railway Board letter No. 99/ TC-III/ 3/ 2 dated 29-6-2001--acs no. 08
• General Manager: Unlimited
• Chief Commercial Manager in HAG or Coordinating Head: Rs. 4,00,000/-
• Chief Claims Officer: Rs. 2,00,000/-
• Deputy CCM (Claims)/ Deputy CCO: Rs. 60,000/-
• Senior Commercial Manager (Claims): Rs. 15,000/-
• Assistant Commercial Manager (Claims): Rs. 8,000/-

Claims For Compensation

• Each railway must take effective measures for claim prevention.
• The Chief Security Commissioner of the Railway should provide security arrangements.
• Compile accurate statistics on loss/damage to consignments, their causes, and locations they occur.
• Study statistical data, determine loss causes, and adopt measures to combat issues at the source.
• Send monthly and cumulative figures of new claims, suits, and pending old claims to the Railway Board.
• Maintain close liaison between Commercial Officers, Security Department Officers, and Railway/State Government Police.
• Hold periodical meetings to review measure effectiveness, make changes, and take fresh measures.
• Representatives from different railways should hold meetings on claim incidence aspects and prevention measures.
• Notify the State Government, local authorities, and the Railway Board promptly if organized crime areas show no improvement.
• Proper wagon riveting and suitable locking devices are needed, especially in areas known for train thefts.
• Inspect procedural rule breaches and irregularities committed by staff.
• Promptly remedy working faults observed during inspections.
• Analyze claims, fix staff responsibility for losses from negligence/misconduct, and take deterrent action.

Pack, Label, Mark and Stop-Rough-Handling Shunting

• "Pack, Label, Mark" and "Stop-Rough-Handling Shunting" weeks should be held periodically.
• Conduct publicity to educate the public and staff on Packing, Labelling, Marking, and Handling goods.
• Examine packages and compile statistics of defectively packed, marked, or labeled packages during "P.L.M." week.
• Compare statistics with previous "P.L.M." check-ups and adopt remedial measures.
• Supervisory Staff should visit stations, goods sheds, parcels offices, and transshipment-sheds during "Stop-Rough-Handling Shunting" weeks.
• Supervsiory Staff should arrange demonstrations of correct goods handling methods.
• Provide adequate storage facilities for goods and parcels.
• Take adequate measures to connect unconnected packages at stations.
• Do not dispose of packages or consignments until all connecting efforts have been made.
• Unconnected wagon load consignments should be quickly traced "backwards" using I.R.C.A. movement records.
• Maintain an up-to-date record of unconnected packages/consignments at stations in the Claims Office using a Card Index System.
• Authority: Railway Board letter No.98/ TC-III/4/Comml. code dated0 7-05-99 )--acs no. 5
• Exchange particulars of all valuable unconnected consignments with other railways monthly.
• Pay no claim for loss of a complete package/consignment without checking particulars of all unconnected consignments.
• Scrutinize details of wagons made over to sidings without linked invoices/Railway Receipts before settling claims.
• The General Manager should authorize Specified Officers to receive notices of claims.
• Notices served to Authorized Officers are equivalent to notice to the Railway Administration as per Railways Act, 1989 section 106.
• Public should receive notification of designations and addresses of officers authorized.
• All claims should be acknowledged promptly, and undergo periodical checks.
• Insist on correct and prompt compensation claim disposal. Compile statistical data to monitor the position.

Claim Settlement

• Claims for shortage/damage/breakage: 3 months
• Claims for partial non-delivery of complete packages: 4 months
• Claims for non-delivery of wagons/complete consignment: 6 months
• Report claims older than these targets along with delay reasons to the Railway Board.
• Settle claims up to Rs.25,000/- each without waiting for Inter-Railway liability and staff responsibility fixation..
• No accounts pre-check is needed for claims up to Rs. 24,999/-
• Subject claims of Rs.25,000/- and above to prior Accounts check for admissibility certification.
• Check each Pay Order to ensure the account tallies with the certified amount.
• Authority: Railway Board letter No. 98/TC-III/ 4/ Comml.Code dated 10.11.98)---ACS NO. 2
• Do not repudiate claims except on adequate grounds per law and policy.
• Authorize Claims Inspectors and Station Masters at major stations to settle Railway Risk claims up to Rs. 400 per claim.
• Notify the public and Railway Board of station names and authorized officials.
• Display a notice prominently at stations.
• Frame instructions for general control over payments and guidance for officials.
• Define circumstances for payments and when to withhold them based on the Railways Act, 1989.
• Ensure the paying official verifies reported damage/pilferage and fixed staff responsibility.
• Specify the form for monthly statements to the Central Claims Office, including required information.
• Display notices inviting public attention to Railways Act, 1989 Section 103.
• Persons booking consignments should declare consignment value in writing and pay the prescribed percentage charge.
• The liability of the Railway will not exceed the amount calculated at Rs. 100/- per kg. for Luggage and Rs. 50/- per kg. for other consignments if no declaration is made and additional percentage paid.
• Claims should be preferred in writing within 6 months of entrusting goods to the Railways as per the Railways Act, 1989.
• The provisions of Section 106 have been complied with even if a claim is preferred to a Railway on the booked route other than the Railway on which the destination station lies or to the Railway Administration to which the Goods are entrusted for carriage;or to any other authorised official of the Commercial Department or if the amount of compensation is not specified in the claim.
• Repudiate time-barred claims not preferred within six months from the delivery date of animals/goods.
• Forward communications about consignments to the destination railway, advising the person concerned and instructing them to correspond further with the destination railway.
• Letters can be treated as claim notices for Railways Act, 1989 Section 106 purposes.
• Time-barred compensation claims should be repudiated, and no payment should be made for these claims.
• General Managers have full delegated powers to settle time-barred claims in consultation with FA & CAO irrespective of monetary limit.
• Authority: Railway Board letter No. 98/TC-III/ 4 /Comml.Code dated 10.11.98)---ACS NO.3
• Reject petty time-barred claims immediately.
• Zonal Railway General Managers can settle suit-barred claims with the Financial Advisers and Chief Accounts Officers concurrence.
• Settle claim cases per the Railways Act, 1989, to avoid lawsuits in the Railway Claims Tribunal.
• Carefully scrutinize cases where suits are filed to see if they can be contested; otherwise, try out-of-court settlement.
• Compile statistics of fresh suits brought against the railway each month
• The number of suits resulting from non-acceptance of repudiations (that is, covering both repudiation and non-acceptance of offers of reduced sums in settlement of claims).
• The number of suits resulting from absence of any decision (that is, covering all cases irrespective of whether the delay is due to the railway handling the claim or other railways).
• The number of suits resulting from any other causes (indicating brief particulars).
• Periodically review statistics and take steps to reduce suits arising from the absence of decisions.

Filing Appeals

• Do not prolong litigation unnecessarily.
• Study the implications of a lost suit before filing an appeal in the High Court.
• Study adverse decisions of the Railway Claims Tribunal/High Court involving principles carefully and decide whether to appeal after getting competent legal advice.
• An officer not lower than the Chief Commercial Manager should make the decision to file a High Court appeal.
• Obtain the Railway Board's prior sanction for appeals to the High Courts involving principles.
• Only file appeals in the Supreme Court with prior sanction from the Railway Board.
• Compensation Claims sanctioned by the Commercial Department for Rs. 75,000 and above are subject to check by the Accounts Office before payment.
• (Authority: Railway Board letter No. 99/ TC-III/ 3/ 2 dated 29-06-2001 )--ACS NO.9
• Exercise adequate control over auction procedures to ensure fair prices.
• Authority: Railway Board letter No.98/ TC-III/4/Comml. code dated 0 7-05-99 )--acs no. 5
• Place a reserve price on valuable articles sold.
• Ensure that the railway retains the right to withdraw any article from sale without an acceptable offer.
• Seek assistance from the Controller of Stores or Technical Officer when there is doubt as to the nature of a consignment.
• Authority: Railway Board letter No.98/ TC-III/4/Comml. code dated0 7-05-99 )--acs no. 5
• Auction sales should be held frequently to avoid congestion.
• Over-centralization should be avoided as far as possible and the goods should be sold where they can realise good prices.
• Follow restrictions imposed by Local Authorities, State Government, or Central Government regarding controlled prices.
• Examine unbooked articles or lost property found in railway vehicles or premises without delay.
• Make every effort to restore the articles to their owners.
• Compile statistics for claims received and expedite their disposal for claims for refund of overcharges.
• Broadly analyze causes for overcharges and take remedial measures to reduce claims.
• Issue instructions for staff to avoid common errors leading to overcharges.
• Instructions for Station Masters to allow refunds at delivery for consignments booked freight charges "To Pay" if charges invoiced incorrectly due to:
  • Error in rate not affected by description or condition of carriage.
  • Error in classification, i.e., where a consignment specially classified in the I. R. C. A. Tariff is correctly described, but charged under the wrong class.
  • Error in calculation.
• Over-charges claimed in respect of goods not specifically mentioned in the Indian Railway Conference Association Goods Tariff should be allowed by Claims Office.
• In the case of errors in calculation, no over-charge is to be allowed or refunded without first carefully reweighing the goods to ensure that the error does not really exist in the invoiced weight.
• Allow refund of overcharges up to Rs.2000/- per consignment by the Claims Office without Accounts Office certification.
• Forward overcharge-sheets after payment to the Accounts Office for post-check.
• Require an overcharge-sheet prepared by the Claims Office and certified by the Accounts Office for refunds exceeding Rs.2000/- per consignment.
• Refund overcharges of rupees five or more detected in the Accounts Office if detected within six months and the party's identity can be established.
• The concern Accounts Office will prepare and submit to the Claims Office statements showing overcharges of rupees five.
• The railway that collects the money should make the refunds and follow the procedure outlined in para 351.
• Obtain names and addresses of the persons entitled (ii) the freight collected and whether in cash or by Credit Note and (iii) whether a refund was allowed at the time of delivery or subsequently.
• Send refund authorities under registered cover to the person if authorized, and advise the Accounts Office.
• Instructions in para 319 apply about Authorisation to Specified Officers to receive notices of claims
• Instructions in para 321 to 32 regarding expeditious disposal of claims
• Instructions in paras 328 Liberal Interpretation of Section 106 of the Railways Act, 1989
• Instructions in paras 330 &331 regarding lime-barred and suit-barred claims
• Instructions in paras 332 and 333 regarding minimising litigation
• Instructions in paras 334 to 338 regarding filing of appeals also apply in the case of Claims for refund of overcharges.
• Claims of State Governments and other Central Government Departments are recognised if preferred within six months
  • With cash payments, claims are measured from the date of payment.
  • For Warrants and Credit Notes, measured from the presentation date of the bill by the Railway Administration.

Refund of Fares

Designation | Monetary Powers for Refund of Overcharges Within Tariff Rules | Not Provided by Tariff Rules

• -- | --- | --- General Manager | Full powers | Full powers Addl. G. M. | Full powers | Full powers Chief Commercial Manager | Full powers | Rs. 5,000/- Dy. C. C. M. | Rs. 5.000/- | Rs. 2,500/- Sr. Commercial Manager | Rs. 1,000/- | Rs. 750/- Asstt. Commercial Manager | Rs. 500/- | Rs. 350/-

Refund of Overcharges Concerning Goods/Parcels & Luggage Traffic

• All officers of the Commercial Department have full powers to grant refunds of overcharges within Tariff Rules subject to pre-check by accounts of overcharges exceeding Rs. 2,000/- per consignment as mentioned in para 347 above.
• In instances not provided for by Tariff Rules, General Managers have powers to grant refunds up to Rs.20.000 in each case.

This quiz covers railway compensation claims, analysis, and handling procedures. It includes topics like PLM weeks, rough handling prevention, unconnected packages, and disciplinary actions for negligent employees. Focus is on proper procedures to minimize losses.