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B-135984 1 (1976-05-21)

handle is hein.gao/gaobadddd0001 and id is 1 raw text is: DECISION 0~L[R c~ ,~ -~z~ -~ 0 L~&~.'~? ~ L N IT f.~ FILE: B-135984 THE COMPTRC,..LER GENERAL OF THE UNITED STATES WASH INGTON. 0.C . 20549 DATE: MAY 2 1 1976 0 9 . MATTER OF: Set-off of Navy claims against insurance companies DIGEST: Proposed revisions to Manual of the Judge Advocate General, Department of the Navy, would permit reduction in amount of insurance company subrogation claims under Federal Tort Claims Act by amount of certain Navy affirmative claims. Navy is advised that (1) settlement or award of tort claim must be made before debt due Government may be set off; (2) amount of Government claim set-off must be deposited into miscellaneous receipts of Treasury; and (3) payment 6f awards in excess of $2,500 must be made by Comptroller General, to whom set-off authority against such awards is reserved. The Judge Advocate General, Department of the Navy, has asked for our opinion as to the validity of certain regulations proposed to be incorporated in the Manual of the Judge Advocate General (JAC Manual), which provide that certain small Navy affirmative claims against insurance companies may be set-off against insurance company subro- gation claims against the Government. The Navy's proposed regulations provide that all JAG Designees under section 2401b of the JAG Manual shall maintain a file for the purpose of setting off affirmative clains against claims cognizable under the Federal Tort Claims Act, 28 U.S.C. §§ 1346, 2671-2680 (1970). Section 2422 of the proposed regulations provides that the following types of affirmative claims shall be contained in the set-off file: (1) Property-damage claims against insurance companies whenever the applicable State law authorizes suit directly against an insurance company (2) Medical Care Recovery Act claims against insurance companies whenever the applicable State law authorizes suit directly against an insurance company (3) Third-party beneficiary medical-payments insurance claims (4) Third-party beneficiary uninsured-motorist insurance clains whenever a direct action atgainst an insurer is permissible without a prior judgment against the uninsured motorist

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