Valuation

Valuation - The valuation selected by each customer sets the limit of Blue Bird and Atlas' maximum liability for loss or damage to a customer's goods. Valuation is governed by Released Rates Orders of the Surface Transportation Board of the U.S. Department of Transportation. Liability is not insurance. Insurance is governed by state insurance laws.

Options of valuation are:

1. 60 Cents per Pound, Per Article (Legal Liability): This is the most economical option available. This level of protection is provided at no additional cost to the customer; however, it only provides minimal protection. Under this option, Atlas assumes liability of no more than 60 cents per pound per article for loss or damage. All claims are settled based on the weight of the damaged article(s) multiplied by 60 cents. Example - if a 10 pound stereo component valued at $1000 were lost or destroyed, Blue Bird or Atlas would be liable for no more than $6.00 (10 pounds multiplied by 60 cents)
2. Full Value Protection (FVP): This option provides that any articles lost, damaged or destroyed by the carrier will, at Atlas' option, either be repaired, replaced with articles of like kind and quality, or a cash settlement will be made for the repairs or for the replacement of the articles at their current market value, regardless of the age of the lost or damaged articles. There are two ways to establish Atlas' maximum liability on an FVP shipment:
   

   A) The value can be declared based on the weight of the shipment, multiplied by an amount of not less than $6.00 per pound (or the pre-established contract per pound rate,)
   
   B) A declaration of a higher lump sum amount can be established. The value declared on a shipment must be at least equal to the weight of the shipment multiplied by $6.00 per pound, subject to a minimum selection of $10,000. Example - 4,500 pound shipment multiplied by $6.00 per pound is a minimum declaration of $22,500. However, the valuation will need to be rounded up to the next valuation amount listed on the FVP Options. A higher lump sum amount can be chosen based on the customer's estimate to properly value their shipment if the per pound method does not provide enough valuation.

   What must be done to declare a Value on a Shipment; the Order for Service or NAC contract specifies the Customer's Declaration of Value. The customer should be aware of the NAC contract limits under which their relocation is consigned to Blue Bird or Atlas. The customer should fully understand the valuation provisions of the contract as they will be required to declare a value for their shipment and sign the declaration certifying same.

   The customer should read the declaration before selecting and signing for their declaration of value on their shipment. Once the declaration is read and understood, they should declare a specific valuation. An additional charge applies when the customer selects the Full Value Protection option (see the Full Value Protection Options).

   • Option 1 - To select Full Value Protection, the customer should select either:
     A per pound amount which cannot be less than $6.00 per pound.
     Full Value Protection, the customer must specify one of the following deductible options:

     Option A - No deductible, or
     Option B - A $250 deductible, or
     Option C - A $500 deductible

   • Option 2 - Released Value of 60 cents per pound per article, the customer must write "60 cents per pound" on the corresponding line of the declaration.

   In all instances, the surveyor and customer must sign and date the CUSTOMER's DECLARATION of VALUE.

   It is important that all shipments with FVP, be properly valued. Example, a shipment with a weight of 10,000 pounds based on a value of $6.00 per pound would need a minimum of $50,000 of valuation. However, if the shipment contains items of high value and the high value items cause the shipment to be valued for more than $50,000, additional valuation would need to be purchased. Proper execution of a high value inventory prior to the relocation will assist in establishing the adequate value of the entire shipment. On COD shipments, if there is no signed Order for Service, or if the valuation was not collected for, the booking agent can be charged back for the FVP cost up to a maximum of $250.00. Once Blue Bird or Atlas begins packing or loading, the shipment's established valuation cannot be changed.