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B-229107 1 (1988-08-22)

handle is hein.gao/gaobadnep0001 and id is 1 raw text is: _-E FThe Comptroller General V of the United States -Washington, D.C. 20548 Decision Paul Rodriguez - Transportation Debt Waiver - Matterof- Household Goods Insurance File: B-229107 Date: August 22, 1988 DIGEST Based on erroneous agency information an employee, expecting to pay $150, placed insurance on his household effects being transported at government expense from Puerto Rico to New York. The insurance actually cost $900, and the employee requests waiver of the $750 the agency paid the carrier for the employee's insurance in excess of the $150. Since the employee's debt resulted from the erroneous advice of his agency, it is considered to have arisen out of an erroneous payment and is subject to consideration under the waiver statute. We concur with the agency's recommendation to waive the $750. DECISION Mr. Paul Rodriguez, an employee of the U.S. Department of Agriculture, was authorized to ship his household effects from Puerto Rico to New York under a Government Bill of Lading (GBL) in August 1986.1/ He desired insurance on the household goods and was advised by his employing agency that the cost to him would be 50 cents for each $100 of valua- tion. Based on this advice, he chose to insure his goods for $30,000 at an expected cost of $150 for which he would be responsible. The agency had given Mr. Rodriguez erroneous advice, and in fact, the applicable insurance rate was $3 per $100 valua- tion. The rate quoted to Mr. Rodriguez was applicable only to domestic shipments and not those emanating from overseas. Consequently, upon shipping his goods, Mr. Rodriguez incurred insurance costs of $900 and not $150, as expected. Following its authorized practice, the agency paid the l/ This case originally was submitted to our Claims Group by Larry Wilson, Acting Director of the Office of Finance and Management, U.S. Department of Agriculture.

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