COMDTINST 4610.1
11 OCT 1996
c.
For shipments not meeting the definition of "valuables," appropriated funds can be
used to purchase insurance (EDV) when:
(1)
The economy sought by self-insurance would be defeated; or
(2)
Sound business practice indicates that a savings can be effected; or
(3)
Services or benefits not otherwise obtainable can be obtained by purchasing
insurance.
d.
All freight shipments moving by commercial truck are already covered for full value
since they must be shipped under reduced rate (Section 10721) tenders conforming
to the General Services Administration (GSA) Standard Tender of Service. EDV
would not apply to this class of shipment. EDV also does not apply to shipments
sent via the U. S. Postal Service.
e.
Under the circumstances outlined below, units can use EDV on any shipment by air
freight, air freight forwarder, small package carrier (UPS or RPS) or small package
express carrier (Federal Express, Airborne, etc.).Carriers have different limits on
how much EDV can be declared on each package, usually ,000 PER
PACKAGE.
f.
Different carriers describe EDV by different names. Common terms are "declared
value," "excess declared value," "value for carriage," "insured value" or "your
declared value." Carriers generally assess charges based on multiples of 0, for
example 24/0, 30/0, etc. This means that the charges are 25 for every 0
of EDV, etc.
5.
POLICY.
a.
Coast Guard policy is to use EDV when the situation calls for it. EDV is a valuable
tool which can save the government significant sums of money if used wisely.
b.
The Coast Guard does not maintain any centralized insurance to cover material lost
by carriers. If the material you're shipping gets lost and EDV wasn't used,
reimbursement is limited to less than 0, no matter what the cost of the item. The
unit would then be responsible for any additional cost of a new or replacement item.
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