The Military Personnel and Civilian Employee Claims Act is a gratuitous payment statute enacted by Congress to partially compensate a member for Personal Property that is lost, damaged, or destroyed. It does not provide insurance coverage, nor is it intended to replace insurance, but rather to alleviate some of the hardships of Military life by providing fair compensation for certain types of property losses.
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The service member must file their claim directly with their TSP within 9 months of delivery to qualify for FRV. The TSP will settle the claim by repairing, paying the member to repair, or paying the repair company to repair damaged items. If an item is missing or destroyed and cannot be repaired, the TSP is liable to replace the item(s) with the fair market value at the time of the loss.