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Order
Subject
Federal Highway Administration Motor Vehicle Management Manual - Chapter 4
Classification Code  
M4340.1A    

CHAPTER 4.  LIABILITY AND DAMAGE CLAIMS

  Par.

  1. What is the employee liability and insurance reimbursement when driving a Federal Government motor vehicle?
  2. How is the defense of suits against employees handled?
  3. What are the procedures for damage claims against private individuals?
  4. What are the accident reporting requirements?

  1. What is the employee liability and insurance reimbursement when driving a Federal Government motor vehicle?

    1. Employee liability.  An employee will not be held financially liable for any damage to a Federal Government-owned or -leased motor vehicle resulting from the operation of the vehicle in the performance of official business.  If the employee's actions warrant disciplinary measures, penalties will be based on the nature of the offense (see 41 CFR 102-34.240).

    2. Collision damage insurance

      1. Travel in the United States.  Reimbursement is not authorized for additional collision insurance (collision damage waiver adjustment) on rental motor vehicles.  An FHWA employee with a rental motor vehicle that incurs damage can pay up to the deductible amount and claim reimbursement of the amount as a travel expense on his/her travel voucher.  The damage should be explained on the voucher or as an attachment.  To cover payment of a large deductible amount, an employee may charge the deductible to the employee's GSA SmartPay® Master Card obtained through the Travel Charge Card Program as described in Chapter 10 of DOT Order 1500.6A, Travel Manual.  In addition, when the damage appears to be the result of actions by another non-employee against whom the Federal Government may have a claim, the traveler will submit an accident report and other pertinent information.

      2. Travel in foreign areas.  An employee may be reimbursed for necessary additional insurance (collision damage waiver or collision insurance) when a motor vehicle is rented or leased for official travel in foreign areas (55 Comptroller General 1343).

    3. Trip insurance-foreign countries.  Reimbursement is authorized for the cost of trip insurance purchased by employees for use of a Federal Government-furnished or privately-owned motor vehicle during official business in a foreign country.  Trip insurance covers potential liability for property damage or personal injury or death to third parties.  Reimbursement is limited to instances in which the purchase of such insurance is required by foreign statute or is a practical necessity due to the legal procedures of the country that, in the event of an accident, could result in detainment of the driver and impoundment of the motor vehicle.  Reimbursement is limited to the cost of the minimum insurance required for the use of the roads or an amount equivalent to the customary minimum amount required by the motor vehicle rental industry in the area.

  1. How is the defense of suits against employees handled?

    1. The Federal Government will defend any civil action that may be brought against an employee, or his/her estate, for damage to property or for personal injury or death resulting from the employee's operation of any motor vehicle while acting within the scope of his/her employment.  Insurance premiums paid by employees to obtain protection for them while driving official motor vehicles outside the scope of their employment are not reimbursable.

    2. When a civil action or proceeding against the employee or the employee's estate is instituted for damage to property, or for personal injury or death arising from an FHWA employee's operation of a motor vehicle while on official business, the employee shall immediately advise his/her first-level supervisor.  Within three days, the employee shall deliver all process and pleadings or an attested true copy, served upon him/her, to his/her first-level supervisor.

    3. The employee's supervisor shall promptly furnish all information concerning the commencement of such action or proceedings and copies of all process and pleadings to the Washington Headquarters' Office of Chief Counsel (HCC-1).  The Motor Vehicle Fleet Manager for Washington Headquarters will furnish HCC-1 upon request copies of SF 91-A, Investigation Report of Motor Vehicle Accident, and any other information available pertaining to the case.

  1. What are the procedures for damage claims against private individuals?

    1. Driver responsibility in case of accident.  When an accident has occurred in a GSA-leased motor vehicle, the FHWA employee should follow the instructions in the Motor Vehicle Accident Kit found in the vehicle.  The employee should also contact his/her office's Motor Vehicle Fleet Manager for additional instructions.  If an accident occurs in an FHWA-owned motor vehicle, contact the Motor Vehicle Fleet Manager who will provide instructions as to proper action.

    2. Damage claims.  Where, on the basis of information furnished in an accident or survey report, it is clearly determined that a private individual is responsible for damage to an FHWA-owned or an IAMP motor vehicle, efforts should be made to recover the costs of repairs of such damages.

    3. Direct payment to facility that repairs the damage.  The Motor Vehicle Fleet Manager should make every effort to have the responsible individual, or his/her insurer, make arrangements for necessary repairs with an acceptable repair facility and for direct payment to such facility. 

    4. Payment to the FHWA.  When arrangements cannot be made for direct payment to the repair facility by the responsible individual or his/her insurer, payment by check to the FHWA will be required.  Since direct payment to the FHWA for damages is not available for expenditure, all such collections will be deposited into the General Fund Receipts of the Treasury.

    5. Refusal to pay for damages.  When it is clearly determined that a private individual is responsible for damages to an FHWA-owned or IAMP motor vehicle and that individual is unwilling to pay for the repairs, the claim should be forwarded to HCC-1.

    6. Parking fees and fines.  Employees must pay parking fees while operating a motor vehicle owned or leased by the Federal Government.  However, employees can expect to be reimbursed for parking fees incurred while performing official duties.  Conversely, if an employee is fined for a parking violation while operating a motor vehicle owned or leased by the Federal Government, payment is the employees personal responsibility and the fine will not be reimbursed to the employee.  See 41 CFR 102-34.255.

  1. What are the accident reporting requirements? A National Accident Management Center (AMC), telephone 1-800-325-2958, supports GSA fleet customers.  The AMC has technicians trained in body damage repair, rental cars, towing, and accident reporting policy.  The AMC's job is to administer accident reporting procedures, process necessary documentation, bill the party at fault, and answer customer questions.

Page last modified on October 19, 2015
Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000