WELCOME

TO
OFILKN
(AD)

REGULARIZATION
OF
STORE LOSSES

(A)

REGULARIZATION OF STORE LOSSES

TRANSIT LOSS

A- PARTIAL
B- FULL

(B)

LOSSES IN STORAGE

(C)

LOSSES IN SHOP FLOOR

(D)

LOSS DUE TO THEFT, FRAUD AND NEGLECT

LOSSES REGULARIZE BY LOSS STATEMENT

NOT DUE TO THEFT, FRAUD OR NEGLECT.
MISS HANDLLING IMPROPER STORAGE ETC.
DETERIORATION WITHIN SELF LIFE.
LOSSES REGULARIZE BY EXPENSEVOUCHER
DETERIORATION AFTER EXPIRY OF SHELF LIFE.
LEAKAGE EVAPORATION ETC.
ACCIDENTS, FIRES, FLOODS ETC.

(D)

FORM USED FOR REGULARIZATION OF LOSSES

(E)

No loss statement is prepared in case of loss in

storage mentioned in Para No. (d) 2 (b) and the
discrepancy is regularized by preparation of expense
voucher.
(F)
In case of loss due to theft fraud and neglect an
enquiry is ordered and the loss is recovered from the
defaulter. However if responsibility is not fixed D(D)
Vr. and loss statement are prepared to write off the
loss and the quantity is charged off through CRV.
(G) In all the above cases the loss is priced by LAO and
sanctioned by CFA as per their financial powers.

PROCEDURE FOR REGULARIZATION

RECOVERY OF LOST OF STORES LOST IN TRANSIT

FROM THE TRANSPORT AGENCY. FOR THIS PURPOSE
CLAIM IS PREFERRED ON THE TRANSPORT AGENCY. THE
COST OF THE CLAIM IS FIXED IN CONSULATION WITH
LAO.

IN CASE THE LOSS THE TRANSIT HAS TAKEN PLACE

DUE TO IMPROPER PAKCING AND NOT ACCEPTED BY THE
TRANSPORT AGENCY THE SAME IS RECOVED FROM THE
CONSIGNOR.

LOSS STATEMENT, DD VR. & PRISED BY LEO &

SANCTION BY CFA IS PREPARED AFTER TAKING PROPER
SANCTION FROM THE HOD AND FORWARDED TO THE
ACCOUNTS FOR FINANCIAL CONCURRENCE.

OPEN DELIVERY

IN CASE OF BROKEN CONSIGNMENT / DAMAGED PACKING

(WHEN THE CONTENTS APPEAR TO HAVE BEEN LOST I

DAMAGED ) OOPEN DELIVERY IS BEING TAKEN BY THE FACTORY

REP.WHERE ON INDEMNITY BOND AND IN THE PRESENCE OF

RAILWAY AUTHORITY AND RPF.

RAILWAY CLAIMS
(1)
What is Railway Claim?
Railway Claim is a claim on carriers i.e. Railway,
for the goods, which are damaged, deteriorated, shortage and
lost in the transit. Action for realization of the value of such
goods is called Railway claim. This Railway claim is preferred
under clause No. 788 and 140 of the Indian Railways Act 1890.
(2)

When Railway Claim can be made?

Railway Claim can be made on the Indian Railways in the

Following circumstances:

(a) Non delivery of consignment of wagon load.

(b) Short delivery of the consignment.
(c)

Shortage/damage/leakage

in

consignments

received in damaged condition, containers in leakage

condition, package showing signs of tampering in
transit and seal/lock/rivets of the wagons found in
broken condition.

Validity of Railway Claim

As per Indian Railway Rule, claims must be preferred/lodged

within 6 months of the date of the booking of the
consignment/wagons. Otherwise claims preferred beyond
stipulated period will be treated as "TIME BARRED" and railway
will not accept any liability on such claims.

(4)
LEGAL ASPECT OF RAILWAY CLAIM
(a)It is the liability of the Railways to transport the
consignments safely and to handover the consignment
to the correct consignee. For this purpose Railways has
classified the category of booking of goods againstCLEAR R.R. and SAID TO CONTENTS R.R.

b)

In case of any loss/damage of the consignment (partly

or fully) Railway has to issue damage/shortage/loss certificate,

which is an authentic document for the lodging of claim.

For obtaining this certificate the consignee has to surrender

original R.R. to the Railway duly endorsed "NON

DELIVERY/SHORT RECEIPT" well in advance, so that the claim
may be lodged/registered within 6 months with the concerned
Chief Claims Officer.

(c)

Once

consignee

receives

R.R.,

it

is

his

responsibility to enquire /check the arrival of

consignment in Railways and take endorsement daily
from Railways that the material has not been received
yet. And after obtaining endorsement (daily) by Railway
approximately for one month, the consignee has to
surrender the original R.R. to Railways and obtain
shortage/damage/loss
certificate
to
enable
the
consignee to lodge Railway Claim within 6 months.

d)

In case of shortage or damage of goods it is the

right of consignee to demand for-

open delivery which may be granted by Chief Parcel

Supervisor/ Chief Goods Supervisor.

During open delivery inspector of RPF, CPS/CGS,

concerned Commercial staff and representative of

consignee will be present. After Open delivery the
CPS/CGS will issue the shortage certificate.
(5)

DIFFERENCE BETWEEN
FORMAL AND INFORMAL RAILWAY CLAIMS

Informal claim:

It is the claim which

is lodged timely (to avoid lapse of claim

period of 6 months due to collection of documents etc.
valuation of goods lost etc.), without any related documents.
Valuation of goods is given approximately on rough
assessment. Simultaneously a copy of this informal claim is
forwarded to LAO for making valuation statement, where tax,
freight, rate
etc. are calculated. Then the Railways will
acknowledge the receipt of informal claim with claim number
and asks for submission of original R.R., Invoice, valuation
statement and etc.

FORMAL / MONITORY CLAIM:

It is the claim which is made after obtaining shortage
certificate from Railways and valuation statement from
LAO with copy of R.R., invoice etc. and also with actual
claimed (valuation) amount and depending on the case
it may be forwarded even after 6 months, because it is
following the informal claim, which is already lodged
within specified period.

RAILWAY LIABILITY AGAINST A CLAIM

There are few authorities, which are empowered
to accept/Register, the claim and settle the same.
( a) Divisional Railway Manager (DRM) is empowered to
accept/Register the claim up to a total value of Rs.10,
000/-

( b) Chief Claims Officer (CCO) is empowered to accept

Register the Claim beyond the total value of Rs.10,
000/-

Railway is accepting liability for cost of material,

excise duty, CST/SST and full or proportionate freight
charges only.

PROCESSING ACTIVITY OF RAILWAY

A CLAIM

AGAINST

After Registration of Railway claim CCO/DRM is

deputing a Senior Commercial Inspector (SCI) for
locating of consignment and investigation in respect of
lost/damage/leakage of the consignment. SCI will start
investigation from booking Railway Station, after that
in case consignment is not traced he will visit the
consignees premises and will check supply order and
original Invoice of the consignor for confirmation of
value of goods, taxes and freight involved. After
investigation SCI will submit his SURVEY REPORT to
CCO/DRM.
(Cont.)

Accordingly these authorities will settle the claim and

send acceptance letter to the consignee for their
liability. At the time of liability acceptance Railway
Authorities keep in mind in respect of category of
booking of consignment.

i.e. against CLEAR R.R. or SAID TO CONTAIN R.R.

Railways will accept full value of material, otherwise
Railways will accept value of material as per price list of
articles available with them. On clear R.R. Railways is
charging 2% extra freight and value declaration is
essential for consignor.

(8) CAUSES FOR REPUDIATION OF RAILWAY CLAIMS

(a)
In case of time Barred claims which is claimed
after 6 months of booking.
(b)
In case necessary documents pertaining to subject
claim
could
not
be
produced
by
consignee/claimant at the time of claiming or on
demand by the Railway Authorities at the time of
final decision of claim
(c)
In case of some specific liquid items, Railways is
not booking in clear R.R. Railways has some
specific standards for containers for specific
liquids to be transported.
Only in case of the liquids filled in such containers
specified by Railways, the Railways will accept
the booking in clear R.R. duly charging some
extra percentage of Freight Charges.

In case the containers of the specific liquids are not

as per the standards specified by railways, the Railways

will make endorsement on the R.R. "Containers not
checked by the Railways" and the booking is on SAID TO
CONTENT R.R. and hence claim may be rejected.

CLAIM OF IMPORTED MATERIALS

In Defence organization the Embarkation Head

Quarters Bombay, will look after the job of consignee in
case of loss, shortage, damage of booked material by
any foreign nation. It is the responsibility of
Embarkation Head Quarters to lodge claims on port
authority. In case the claim is accepted partly the
Embarkation Head Quarters will constitute a Board
Enquiry for taking decision for regularization of
unaccepted amount of claim. After board of Enquiry,
embarkation head quarters will forward BOE report
along with a statement of case to the correct consignee
for regularization of the unaccepted amount of the
claim.

(10) FILING OF APPEAL AGAINST RAILWAY IN RAILWAY

TRIBUNAL

In case of refusal/repudiation of Railway Claim the

consignee has to re-appeal

case to the same
authorities (DRM/CCO) for reviewing the case. If the
DRM/CCO refuses even after re- appeal, the consignee
has to file the case in the Railway Tribunal. But, Since
the Railways and Defence Organizations are Central
Government Departments the Ordnance Factory has to
obtain approval from the Ordnance Factory Board for
filing the case in Railway Tribunal against Railways.
(11)

(B)
(D)
(E)
(F)
(12)

DOCUMENTS REQUIRED FOR

CLAIMING A RAILWAY CLAIM
Railway Receipt/ PWB.
Shortage/ Damage / Loss Certificate.
Invoice/ Beejak.
Valuation statement in duplicate.
S.O. Copy.

PROCEDURE FOR LODGING AND FINALIZATION OF

RAILWAY CLAIMS IN ORDNANCE FACTORIES
(a)
In Case of non-delivery/shortage/damage,
Railway siding Group and store collection group will
make entries in Railway Claim Register and handover
relevant documents to staff concerned for lodging the
Claim.
(b) Preparation of Informal/preliminary claim with full
details of the consignment along with approximate
value of the store and obtain signature from Divisional
Officer of store Section.

(c) Send Original Informal claims to Chief Claims Officer/

Divisional Railway Manager under Regd.
Acknowledgement due post and note in Railway claim
Register and also send a copy to the consignee.
(d) One copy of the Informal claim is being forwarded to
the Local Accounts Officer for Preparation of Valuation
statement.
(e) After getting valuation statement from Accounts
Officer Formal /Monitory claim is prepared and send
chief Claims Officer/ Divisional Railway Manager duly
enclosed Railway Receipt / PWB, Shortage certificate,
Invoice, Valuation statement in duplicate.
(f) On receipt of claim acceptance letter from the
Railway Authorities a DDVR., loss statement and
Certified Receipt Voucher will be prepared for final
settlement of the Railway Claims.

STATEMENT OF CASE

(To be forwarded by the factory along with the loss

statement)
Q 1 How did it happen?

Q 2When did it happen?

Q 3 Why did it happen?
Q 3When and how was it detected, whether by
internal audit or statutory
audit?

Q 5 Could it have been avoided?

Q 6 Could it happen again? And if so what remedial
measures have been
taken? Or are proposed to be taken?

 Q 7 Was a court of enquiry held and if not, why not?

Q 8 Was any individual held responsible, if not, why
not?
Q 9 Statement of case in narrative form is enclosed
or not?
Q 10 Have the loss statement raised in time as per
the drill, if not
reasons for delay?

Q 11 Chronological delay report attached or not?

Q 12 Preliminary/Technical investigation carried out
or not?
Q 13 Whether BOE is considered necessary in this
case or not. If not, why?
Q 14 Whether subsequent production is in progress
if so, what is the
result and how that is under control?

Q 15 The percentage of refection of subsequent

warrants is under control
Q 16 Is the loss statement due to theft, fraud or
neglect?
etc
GM POWER FOR REGULARISATION OF STORE LOSSES
OFB POWER FOR REGULATION OF LOSSES

The delegation is subject to the condition that reason

for irrecoverable losses and unavoidable losses due to
rejection are to be fully investigated and place on
record and that remedial action taken to prevent
recurrence and to reduce UAR in manufacture In future
should also be placed in record.
(Authority: M of D letter No. 2(6)/85/D(FY-1). Dt. 10-06-

86)
THANKS