Chapter 3 Claims for Compensation PDF

**CHAPTER III** **CLAIMS FOR COMPENSATION AND FOR REFUND OF OVERCHARGES** 301. The Claims and Refunds Branches should be so organised as to ensure both prompt settlement of claims and initiation of action to prevent claims. 302. The Claims/Refunds Officers should properly educate the offi...

**CHAPTER III** **CLAIMS FOR COMPENSATION AND FOR REFUND OF OVERCHARGES** 301. The Claims and Refunds Branches should be so organised as to ensure both prompt settlement of claims and initiation of action to prevent claims. 302. The Claims/Refunds Officers should properly educate the office and out-door staff attached to them in their duties. 303. The claims settling authorities are empowered to settle claims for loss, damage, etc. in accordance with the following powers :--- **Designation** ------------------------------------------------------ -- General Manager Chief Commercial Manager in HAG or Coordinating Head Chief Claims Officer Deputy CCM (Claims)/ Deputy CCO Senior Commercial Manager (Claims) Assistant Commercial Manager (Claims) ( Authority: Railway Board letter No. 99/ TC-III/ 3/ 2 dated 29-6-2001 )\--acs no. 08 ===================================================================================== A. CLAIMS FOR COMPENSATION -------------------------- 304. Each railway will take adequate and effective measures for the prevention of claims. Necessary security arrangements in this regard should be provided by the Chief Security Commissioner of the Railway. 305. Accurate statistics of loss of or damage to consignments together with their causes and the areas in which they occur should be regularly compiled. The statistical data so compiled should be carefully studied, causes for losses determined and suitable measures to combat the evil \"at source\" adopted with initiative and promptness. 306. Close liaison should be maintained between Commercial Officers, Officers of the Security Department and Officers of the Railway and State Government Police. Periodical meetings should be held at which the effectiveness of measures already in force should be reviewed, changes made and fresh measures taken wherever called for. 307. In order to ensure that effective action is taken to control organised crime, where records of areas notorious for running train thefts show no signs of improvement, the matter should be promptly brought to the notice of the State Government concerned, the local Civil and Police Authorities, and the Railway Board. 308. Arrangements should be made for the proper rivetting of wagons. Suitable locking devices should be used as far as possible for protecting valuable consignments, particularly when passing through areas notorious for running train thefts. 309. A large number of compensation claims received by railways is due to breaches of procedural rules and various irregularities committed by the staff. It is necessary therefore that officers and other Supervisory Staff of the Commercial Department carry out inspections and routine checks properly and regularly. The faults of working observed during such inspections should be promptly remedied. 310. Every claim should be analysed to ascertain these faults and every attempt should be made to fix the responsibility of staff in all cases of losses etc. arising from negligence or misconduct on the part of railway employees. Suitable deterrent action should be taken against those found to be at fault. 311. \"Pack, Label, Mark\" and \"Stop-Rough-Handling Shunting\" weeks should be periodically held. During these weeks a carefully planned and comprehensive publicity campaign should be carried out to educate the trading public and the railway staff in the proper methods of Packing, Labelling, Marking and Handling of goods. During the \"P.L.M.\" week, packages on hand and in transit should be carefully examined and statistics compiled of packages found defectively packed, marked or labelled. These statistics should be compared with the results obtained during the previous \"P.L.M.\" check-ups and suitable remedial measures adopted wherever necessary. 312. During the \"Stop-Rough-Handling Shunting\" weeks Supervisory Staff should personally visit important stations, goods sheds, parcels offices and transshipment-sheds and arrange demonstration of the correct methods of handling of goods wherever needed. 313. Provision of adequate storage facilities for goods and parcels should receive special attention. Tracing of Unconnected Consignments ----------------------------------- 314. Adequate measures should be taken to connect unconnected packages lying at stations. No such package or consignment should be disposed of until every effort has been made to connect it. ( Authority: Railway Board letter No.98/ TC-III/ 4/Comml. code dated0 7-05-99 )\--acs no. 5 =========================================================================================== 315. Unconnected wagon load consignments should be quickly traced \"backwards\" to determine their correct destination, full advantage being taken of the I.R.C.A. movement records for this purpose. 316. The Claims Office should maintain an up-to-date record of particulars of unconnected packages and consignments lying at stations by obtaining from each station a periodical statement showing particulars of such packages and consignments. These particulars should be registered commodity-wise preferably using the Card Index System. 317. Particulars of all valuable unconnected consignments lying on hand should be exchanged with other railways every month to enable as many of such consignments being connected as possible. 318. No claim for compensation of any appreciable value for loss of a complete package or consignment should be paid without reference to the particulars of all unconnected consignments received from stations and from their railways. Authorisation to Specified Officers to receive Notices of Claims ---------------------------------------------------------------- 319. The General Manager should pass express orders authorising Specified Officers to receive notices of claims and notices so served should be treated as equivalent to notice to the Railway Administration in compliance with the provisions of Section 106 of the Railways Act, 1989. The designation and the address of the officers so authorised should be notified to the public from time to time. Expeditious Disposal of Claims ------------------------------ 320. All claims should be promptly acknowledged and a periodical check made to ensure that this is being done. 321. Correct and expeditious disposal of compensation claims should be insisted upon and adequate statistical data compiled to enable a constant watch to be kept over the position. 322. The maximum period within which different types of claims should be settled is indicated below :--- i. Claims for shortage/damage/Breakage etc.---3 months ii. Claims for partial non-delivery of complete packages---4 months iii. Claims for non-delivery of wagons/complete consignment---6 months 323. Claims valuing upto Rs.25,000/- each should be settled without waiting for fixation of Inter-Railway liability and staff responsibility which can be done after settling the claims. No accounts pre-check will be required for claims of the value of upto Rs.24,999/- and only claims of the value of Rs.25,000/- and above, in each case, shall be subjected to prior Accounts check for certification of admissibility and each Pay Order should be checked to see that the account tallies with that already certified. ( Authority: Railway Board letter No. 98/ TC-III/ 4/ Comml.Code dated 10.11.98 )\-\--ACS NO. 2 ============================================================================================== 324. Claims should not be repudiated except on adequate grounds in accordance with the law and the accepted policy. 325. With a view to expediting the settlement and payment of small claims on consignments booked at Railway Risk, Claims Inspectors and Station Masters at more important stations may be authorised to settle claims preferred on account of damages or shortages on consignments booked at Railway Risk upto Rs. 400 per claim. The names of such stations and authorised officials should be notified to the public and also intimated to the Board. A suitable notice should be prominently displayed at stations. 326. Precise instructions as indicated below should be framed for ensuring general control over all payments made and for the guidance of the officials referred to in the preceding para. iv. as to the circumstances in which payments may be made and when they should be withheld because of the protection afforded to the railway under the various sections of the Railways Act, 1989; v. to ensure that the paying official verifies that damage or pilferage etc., for which payment is being made was duly reported at the time of unloading and staff responsibility for loss or damage at the destination station is fixed; vi. as to the form in which the monthly statements are to be submitted to the Central Claims Office and the information to be included therein in respect of each payment. Displaying of Suitable Notices inviting Attention of the Public to the Provisions of Section 103 of the Railway Act, 1989 ------------------------------------------------------------------------------------------------------------------------- 327. Notice as indicated below should be displayed in bold form at conspicious places at the Luggage, Parcels and Goods offices inviting attention of the public to the provisions of Section 103 of the Railways Act, 1989 :--- 328. Claims should not be entertained unless preferred in writing within 6 months from the date of entrusting of the goods to the Railways as provided in Section 106 of the Railways Act, 1989. The provisions of this Section may be assumed to 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. Claims which are not preferred to any quarter as indicated above within six months from the date of the delivery of the animals or goods for carriage by a railway are time-barred and should be repudiated. 329. All communications reporting loss or non-delivery of or damage to consignments or enquiring about their whereabouts received by railways other than the one on which the destination station lies should be forwarded to the destination railway for disposal, the person concerned being simultaneously advised of the action taken and to correspond further with the destination railway. Such letters may be treated as notices of claim for the purpose of Section 106 of the Railways Act, 1989. Time barred and Suit-barred Claims for Compensation --------------------------------------------------- 330. Subject to the provisions contained in paragraphs 328 and 329, a compensation claim against a Railway Administration which is barred by time under any provisions of the law relating to limitation should ordinarily be repudiated and no claim on account of such a time- barred item should be paid. However, full powers have been delegated to General Managers to settle time barred compensation claims in consultation with FA & CAO irrespective of the monetary limit. ( Authority: Railway Board letter No. 98/ TC-III/ 4 /Comml.Code dated 10.11.98)\-\--ACS NO.3 ============================================================================================ 331. The General Managers of Zonal Railways will have full powers in regard to settlement of suit barred claims for compensation with further authority to re-delegate their powers to the Chief Commercial Managers and the Dy. Chief Commercial Manager to the extent considered necessary. The concurrence of the Financial Advisers and Chief Accounts Officers or the Deputy Financial Advisers and Chief Accounts Officers is to be obtained in each case. Minimising Litigation --------------------- 332. Settlement of claims cases should be done strictly in accordance with the relevant provision of the Railways Act. 1989 so that the claimant has no grounds to file a suit in the Railway Claims Tribunal. Cases where suits arc filed should be scrutinised carefully to see if they can be successfully contested otherwise attempt should be made to arrive at out of court settlement. This will eliminate avoidable litigation as well as the payment of cost and interest on the claims amount. 333. Statistics of fresh suits brought against the railway during each month should be compiled under the following heads:--- a. 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). b. 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). c. the number of suits resulting from any other causes (indicating brief particulars). These Filing of Appeals ----------------- 334. Litigation should not be unnecessarily prolonged. When a suit is lost, its implication should be carefully studied before taking a decision on the question of filing an appeal in the High Court. 335. The decision of the Railway Claims Tribunal/High Court in cases involving principles arc on a different footing, as they are frequently cited as precedents. All such adverse decisions should be carefully studied and the decision to appeal or not taken after obtaining competent legal advice. 336. A decision to file an appeal to a High Court should not be taken by an officer lower in rank than the Chief Commercial Manager. 337. In the case of appeals to the High Courts, where principles are involved, as distinct from appreciation of facts, the Railway Board\'s prior sanction should be obtained. 338. No appeal should be filed in the Supreme Court without the prior sanction of the Railway Board. Check of Compensation Claims sanctioned by the Commercial Department -------------------------------------------------------------------- 339. All Compensation Claims sanctioned by the Commercial Department for Rs. 75,000 and above are subject to check by the Accounts Office before payment is made. ( Authority: Railway Board letter No. 99/ TC-III/ 3/ 2 dated 29-06-2001 )\--ACS NO.9 ==================================================================================== (Authority: Railway Board letter No.98/ TC-III/ 4/Comml. code dated 0 7-05-99 )\--acs no. 5 =========================================================================================== 340. Adequate control should be exercised on the procedure governing the holding of auctions to ensure that reasonable prices are realised. No article of value should be sold without a reserve price being placed upon it. It should be a condition of all auction sales and the same condition should be embodied in all contracts with auctioneers that the railway reserves the right to withdraw any article from sale for which an acceptable offer is not made. Authority: Railway Board letter No.98/ TC-III/ 4/Comml. code dated 0 7-05-99 )\--acs no. 5 341. Where a doubt exists as to the nature of a consignment, the assistance of the Controller of Stores or other Technical Officer may be obtained so that the article may be correctly specified in auction, or sale lists. Authority: Railway Board letter No.98/ TC-III/ 4/Comml. code dated0 7-05-99 )\--acs no. 5 ========================================================================================= 342. With a view to avoiding congestion, auction sales should be held at frequent intervals. Over-centralisation should be avoided as far as possible and the goods should be sold where they can realise good prices. In disposing of such goods, care should also be taken to observe scrupulously any ban or restriction imposed by the Local Authorities, the State Government or the Central Government on the sale of any particular commodity as well as any regulation regarding controlled prices. Restoration of Lost Articles to Owners -------------------------------------- 343. Unbooked articles or lost property found in railway vehicles or railway premises should be examined in the presence of responsible staff without undue delay and every attempt made to restore such articles to the owners. (B) CLAIMS FOR REFUND OF OVERCHARGES ------------------------------------ 344. Statistics should be compiled to permit of a constant watch being maintained on the number of claims received and their expeditious disposal. 345. Station Masters may be instructed to allow refunds at the time of delivery, in the case of consignments booked freight charges \"To Pay\", where it is clear that the charges invoiced are incorrect due to any of the following reasons (provided the consignment tallies with the description shown in the invoice):--- vii. Error in rate not affected by description or condition of carriage. viii. 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 (overcharges claimed in respect of goods not specifically mentioned in the Indian Railway Conference Association Goods Tariff and regarding which doubts exist as to the correct rate chargeable do not come under the heading \"Error in classification\". In such cases, refunds can only be allowed by the Claims Office concerned). ix. Error in calculation. 346. Refund of overcharges upto a limit of Rs.2000/- per consignment both in respect of local and through traffic shall be granted by the Claims Office without prior certification by the Accounts Office. The overcharge-sheets after payment will be forwarded to the Accounts Office for post-check. 347. No refund of overcharges exceeding Rs.2000/-per consignment should be allowed without an overcharge-sheet being prepared by the Claims Office and certified by the Accounts Office. Unclaimed Overcharges --------------------- 348. Overcharges, either coaching or goods, amounting to rupees five or more not refunded at the time of delivery but subsequently detected in the Accounts Office should be refunded, if detected not later than six months after the money has been collected, provided the identity of the party to whom the money is due can be established. Such refunds should only be made by the railway which collects the money to the person who paid the money or his order, and the procedure described in para 351 below should be followed in making the refund. 349. The Accounts Office concerned will prepare and submit to the Claims Office statements showing overcharges of rupees five and above refundable. On receipt of these statements. Station Masters should be asked for (i) the names and addresses of the persons entitled to the refund (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. If. on receipt of this information, the refund is found to be due, an authority for refund should be sent under a registered cover to the person concerned, the Accounts Office being advised at the same time. 350. The instructions laid down in para 319 regarding authorisation to Specified Officers to receive notices of claims; in paras 321 to 325 regarding expeditious disposal of claims; in paras 328 and 329 regarding Liberal Interpretation of Section 106 of the Railways Act, 1989: in paras 330 & 331 regarding lime-barred and suit-barred claims; in paras 332 and 333 regarding minimising litigation and in paras 334 to 338 regarding filing of appeals also apply in the case of Claims for refund of overcharges. Claims of Government Departments for Refund of Overcharges ---------------------------------------------------------- 351. Claims of State Governments and other Departments of the Central Government against railways for overcharges will be recognised and admitted if the claims are preferred within six months; x. in the case of cash payments, from the date of payment, and xi. in the case of Warrants and Credit Notes, from the date of presentation of bill by the 352. Claim settling officers are empowered to settle claims for refund in accordance with the following powers:--- Refund of Passenger Fares ------------------------- -- -- -- -- -- -- b. **Refund of Overcharges in respect of Goods/Parcels & Luggage Traffic** i. Within Tariff Rules ii. Not provided by Tariff Rides