PACMAN Chapter 6 Part 5: Compensation for loss or damage

Part 5: Compensation for loss or damage to items stored or removed

6.5.1    Purpose
6.5.2    Person eligible for compensation
6.5.3    Limit on amount of compensation
6.5.4    General principle – repair or replacement of like item
6.5.5    Repair or hire of items
6.5.6    No compensation for certain items
6.5.7    Incorrect packing
6.5.8    Insurance for urgently required household items
6.5.9    Regional review (This clause is policy guidance)
6.5.10   National review (This clause is policy guidance)

6.5.1 Purpose

A member, their dependant or legal personal representative may be compensated for loss or damage to furniture or effects removed or stored at Commonwealth expense.

Compensation under this Part is based on the principle of repair or replacement with a similar item, not new for old replacement.

A member may also be reimbursed the cost of insuring goods that they remove at their own expense or that are urgently required.

Note: Furniture and effects means all portable household items ordinarily used for domestic purposes and convenience.

6.5.2 Person eligible for compensation

1.	A member may be compensated for loss or damage to furniture and effects if both of these conditions are met.
	a.	They were granted a removal within Australia at Commonwealth expense.
	b.	Items of their furniture and effects were lost or damaged during the removal. This includes any period when they were stored at Commonwealth expense.
2.	The member is not entitled to compensation from the Commonwealth for any furniture and effects that the member insures against loss or damage. Note: This is because compensation is provided for under the insurers' warranty system.
3.	A dependant or legal personal representative of the member may be compensated under this Part in the same way as a member. Example: The dependant may claim because the member is overseas on deployment or is ill.

6.5.3 Limit on amount of compensation

TAX ALERT: PACMATE Annex 3.A, item 104.

1.	Payment under this Part is limited to $100,000 for each removal.
2.	This clause does not prevent the member obtaining their own insurance cover for items beyond this limit.
3.	Compensation for loss or damage is paid through the Commonwealth removalist.
4.	Loss or damage to an item may only be claimed once under this Part.

6.5.4 General principle – repair or replacement of like item

TAX ALERT: PACMATE Annex 3.A, item 105.

1.	Compensation paid under this Part for lost or damaged items may only be paid for the following.
	a.	Repair of the item, if it is reasonable and economical to repair.
	b.	Supply of a similar replacement item, having regard to the age, style and condition of the lost or damaged item.
2.	If it is not reasonable or practical to replace or repair the lost or damaged item, then compensation can be paid for the loss or damage to the item, having regard to its age, style and condition.
3.	If a lost or damaged item is one of a pair or collection, then compensation is only paid for the item itself, not the set. Compensation may also be paid if the loss or damage to the item causes any loss of use of the set. Example: If the rest of the set cannot function properly without the lost item, compensation could be paid.
4.	A member must seek written approval from the Commonwealth removalist before doing either of the following.
	a.	Replacing, repairing or disposing of a lost or damaged item.
	b.	Seeking compensation under this Part. Note: Refusal under paragraph b. does not prevent the member from seeking compensation under clause 6.5.9.

6.5.5 Repair or hire of items

1.	The member may be reimbursed for the immediate repair of an item, if all the following conditions are met.
	a.	The item is an essential item and is damaged and cannot be used.
	b.	The Commonwealth removalist approves the repair of the item and chooses the repairer.
2.	A member may be entitled to short-term hire of essential items under clause 6.6.13. See: Part 6 Division 2 clause 6.6.13, Hire of replacement household items

6.5.6 No compensation for certain items

1.	A member is not entitled to compensation for loss or damage to any of the following items removed or stored at Commonwealth expense in Australia.
	a.	A private motor vehicle. Note: Members may obtain private insurance to cover any loss or damage.
	b.	A towable item. Note: Members may obtain private insurance to cover any loss or damage.
	c.	Any item that is outside the removal limits listed for it in clause 6.6.10. See: Part 6 Division 2 clause 6.6.10, Limitations on certain items
	d.	Containers of products that have been opened.
2.	A member is not entitled to compensation for loss or damage to any items listed in subclause 6.6.11.3. See: Part 6 Division 2 clause 6.6.11, Items not removed at Commonwealth expense

6.5.7 Incorrect packing

1.	Compensation is not payable for damage to any item not packed correctly when the packing was not done by the Commonwealth removalist. Note: These items are often called "packed by owner" items. The member should seek advice from the removalist about correct ways of packing items into cartons. See: Chapter 1 Part 3 Division 1 clause 1.3.12, Commonwealth removalist
2.	Compensation may be payable for items that were not packed correctly if the carton has been damaged during removal by the Commonwealth removalist and this has caused loss or damage to its contents.
3.	The member can seek their own additional insurance cover to protect against loss of or damage to the contents not packed by the removalist.
4.	A member will not be compensated for loss or damage to their furniture and household effects if they have included items listed items 1, 2 or 4 of the table in clause 6.6.11 among them. See: Part 6 Division 2 clause 6.6.11, Items not removed at Commonwealth expense

6.5.8 Insurance for urgently required household items

TAX ALERT: PACMATE Annex 3.A, item 106.

1.	A member may be reimbursed the cost of insuring urgently required household items when they are removed. The dependant of a deceased member may also be reimbursed. Example: Urgently required household items might include clothing, crockery, cutlery and any furniture and effects needed for a baby or an invalid. See also: Part 6 Division 2 clause 6.6.12, Removal or urgently required household items
2.	Both of these conditions must be met.
	a.	The household items are removed within Australia at Commonwealth expense.
	b.	The member or dependant insures the items for the duration of the removal.
3.	The amount reimbursed is the amount paid for the insurance up to the greater of these two amounts.
	a.	$150.
	b.	2% of the sum insured.
	Note: Clause 1.6.1 deals with situations where a member's adult dependant is also a member, and they would both be entitled to be reimbursed the cost of insuring urgently required household items when they are removed. Only one of the members is entitled. See: Chapter 1 Part 6 clause 1.6.1, Dual entitlement – member's adult dependant is also a member
	Related information: Insurance advice for members who keep their accommodation while deployed can be found in clauses 17.5.12, 17.5.13, 17.7.12 and 17.7.13.

6.5.9 Regional review (This clause is policy guidance)

1.	A person may apply to the Defence Relocations and Housing Manager for a fresh decision following a local decision made by the Commonwealth removalist in either of the following circumstances.
	a.	The person's claim for compensation for loss or damage of items on removal has been refused by the Commonwealth removalist.
	b.	The person is not satisfied with the outcome of settlement negotiations with the Commonwealth removalist.
2.	A person may provide additional information in support of a claim rejected by the Commonwealth removalist.
3.	The Defence Relocations and Housing Manager, having regard to any recommendations of and an employee or agent of the Commonwealth removalist, may decide if compensation may be paid under this Part having regard to the additional information provided. See: Chapter 1 Part 3 Division 1 clause 1.3.12, Commonwealth removalist

6.5.10 National review (This clause is policy guidance)

1.	If a person's claim has been refused by a regional review under clause 6.5.9, the person may request that the claim be forwarded to the Central office for a national review.
2.	A person must provide additional information to support their claim to the Director of Relocations and Housing for consideration.
3.	The national review committee is made up of the following positions.
	a.	A Department of Defence representative from either of the following positions.
		i.	Director of Relocations and Housing.
		ii.	Senior Contract Manager Directorate of Relocations and Housing.
	b.	A Commonwealth removalist representative from either of the following positions. See: Chapter 1 Part 3 Division 1 clause 1.3.12, Commonwealth removalist
		i.	National Supplier Manager.
		ii.	General Manager Toll Relocations.
4.	One of the Department of Defence representatives listed in paragraph 3.b, having regard to the additional information and any recommendations of the committee, may decide to do either of the following.
	a.	To give benefits previously refused under clause 6.5.9.
	b.	Not to provide any additional benefit.

PACMAN AL10 (August 2009) Chapter 6 – Part 5 – 1