Printing - FECA-PT2 - National Association of Letter Carriers

the injury will be repaired and maintained at OWCP expense. Other parts of the vehicle will
be repaired, maintained and replaced at the owner's expense even if OWCP paid for the
vehicle. Replacement equipment for the present vehicle or similar equipment will be
provided on a replacement vehicle if the claimant can establish that the vehicle should be
replaced. OWCP may only consider the purchase of a subsequent vehicle when the
estimated cost of reasonable mechanical repairs on the current vehicle exceeds its lowest
current Blue Book value.
(10) The claimant is required to provide proof of adequate insurance and proper
registration of the vehicle in the state of residency. The costs of insurance and registration
are the responsibility of the claimant. Claimants are required to carry fire, theft,
comprehensive and collision insurance on vehicles paid for in whole or in part by OWCP, but
need not maintain collision insurance if the equipment furnished is worth under $200.
(11) The Government is entitled to reimbursement for the value of the modifications when
relinquished or no longer needed by the claimant, if the value of the modifications exceeds
$10,000 at that time. Reimbursement is due to the Government only in situations where the
claimant has had use of the vehicle or vehicle modifications for less than ten years. The
value of a vehicle purchased for a claimant, or of automotive accessories such as power
steering, automatic transmission and power door locks, will be determined by the lowest
current Blue Book figure when the vehicle is sold, traded, or no longer needed by the
claimant.
At the time the vehicle or automotive accessory is sold, traded, or otherwise disposed of,
the current value of the item is reduced by 10 percent for each year used by the claimant in
order to obtain the figure for reimbursement. For example, where the value of the modified
vehicle is $10,000 at the time of disposal and the claimant has used it for six years,
reimbursement to the Government should be $4,000. The CE should multiply 10 percent by
the number of years used (.10 X 6=.60), and multiply the result by the current
value of the modified vehicle (.60 X $10,000=$6,000), and subtract the result from the
current value ($10,000-$6,000=$4,000) to obtain the reimbursement amount. If the
current value is less than $10,000, the above formula will not be applied and the claimant
will not be required to reimburse OWCP.
(12) The claimant (and authorized representative if applicable) should be notified of these
reimbursement requirements and should sign an acknowledgment of these reimbursement
responsibilities. See Exhibit 1.
b. Technical Development.
If medical eligibility has been satisfied, the claimant should be advised of the criteria
mentioned in this section. Specifically, the claimant should be notified from the
outset that an existing vehicle will be modified whenever feasible, but that any new
or used vehicle purchased must be at the discounted price of the most cost-effective
base-line vehicle of suitable size, taking credit for the trade-in value of the claimant's
present vehicle. If the claimant owns more than one vehicle, the vehicle with the
FECA-PT2 Printed: 06/08/2010 718