§ 2740. Property loss: reimbursement of members and civilian employees for full replacement value of household effects when contractor reimbursement not available
The Secretary of Defense and the Secretaries of the military departments, in paying a claim under section
3721 of title
31 arising from loss or damage to household goods stored or transported at the expense of the Department of Defense, may pay the claim on the basis of full replacement value in any of the following cases in which reimbursement for the full replacement value for the loss or damage is not available directly from a carrier under section
2636a of this title:
(1)
A case in which—
(A)
the lost or damaged goods were stored or transported under a contract, tender, or solicitation in accordance with section
2636a of this title that requires the transportation service provider to settle claims on the basis of full replacement value; and
(2)
A case in which—
(A)
the loss or damage occurred while the lost or damaged goods were in the possession of an ocean carrier that was transporting, loading, or unloading the goods under a Department of Defense contract for ocean carriage; and
(B)
the land-based portions of the transportation were under contracts, in accordance with section
2636a of this title, that require the land carriers to settle claims on the basis of full replacement value.
(3)
A case in which—
(A)
the lost or damaged goods were transported or stored under a contract or solicitation that requires at least one of the transportation service providers or carriers that handled the shipment to settle claims on the basis of full replacement value pursuant to section
2636a of this title;