PART 756—PROCEDURES FOR PROCESSING CLAIMS INVOLVING NON-APPROPRIATED FUND ACTIVITIES AND THEIR EMPLOYEES Authority: 5 U.S.C. 301, 10 U.S.C. 5013 and 5148. Source: 57 FR 4736, Feb. 7, 1992, unless otherwise noted. § 756.1 Scope. This part explains how to settle claims for and against the United States for property damage, personal injury, or death arising out of the operation of non-appropriated fund activities (NAFI). 1 1 [72 FR 53425, Sept. 19, 2007] § 756.2 Definitions. (a) Nonappropriated-fund instrumentality (NAFI). (b) Nonappropriated-funds. (c) Employees of NAFIs. [57 FR 4736, Feb. 7, 1992, as amended at 72 FR 53425, Sept. 19, 2007] § 756.3 Notification. (a) Some NAFI's, such as flying clubs, carry private commercial insurance to protect them from claims for property damage and personal injury attributable to their operations. The Commandant of the Marine Corps, the Chief of Naval Personnel, and the Commander, Naval Supply Systems Command determine whether NAFI's within their cognizance shall carry liability insurance or become self-insurers, in whole or in part. (b) The Marine Corps requires mandatory participation in the Morale, Welfare and Recreation (MWR) Composite Insurance Program by the following operations: MWR operations and retail services, food and hospitality, recreation; and special NAFI activities including flying clubs, rod and gun clubs, Interservice Rifle Fund, Marine Corps Marathon and Dependent Cafeteria Fund. The following organizations may also participate in the MWR Composite Insurance Program, if desired: Child welfare centers, billeting funds, chapel funds, and civilian welfare funds. (c) When the operations of NAFI's result in property damage or personal injury, the insurance carrier, if any, should be given immediate written notification. Notification should not be postponed until a claim is filed. When the activity is self-insured, the self-insurance fund shall be notified of the potential liability by the activity. § 756.4 Responsibility. (a) All claims resulting from NAFIs should be submitted to the command having cognizance over the NAFI involved. The claim will then be forwarded to the Tort Claims Unit (TCU) Norfolk located at the following address: Department of the Navy, Office of the Judge Advocate General, Tort Claims Unit Norfolk, 9620 Maryland Avenue, Suite 100, Norfolk, VA 23511-2989. (b) The TCU Norfolk has cognizance over all DoN claims. Normally, the TCU Norfolk has primary responsibility for the negotiation and settlement of NAFI claims. This is because NAFIs are Federal agencies within the meaning of the Federal Tort Claims Act (FTCA) if the NAFI is charged with an essential function of the DoN and if the degree of control and supervision by the Navy is more than casual or perfunctory. Compare United States Holcombe, Scott United States, [72 FR 53425, Sept. 19, 2007] § 756.5 Investigation. Claims arising out of the operation of NAFIs, in and outside the United States, shall be investigated in accordance with the procedures for investigating similar claims against appropriated fund activities. The Manual of the Judge Advocate General (JAGMAN), Chapter II 2 2 http://www.jag.navy.mil. [72 FR 53425, Sept. 19, 2007] § 756.6 Negotiation. (a) General. (b) When the NAFI is insured. (c) When the NAFI is not insured. [72 FR 53425, Sept. 19, 2007] § 756.7 Payment. (a) Claims that can be settled for less than 1,500.00. (b) Claims that cannot be settled for less than $1,500.00. (c) When payment is possible under another statute. (d) Other claims. [72 FR 53426, Sept. 19, 2007] § 756.8 Denial. Claims resulting from non-appropriated fund activities may be denied only by the TCU Norfolk. The denial will begin the six-month limitation on filing suit against the United States for claims filed under the FTCA. Denial of a claim shall be in writing and in accordance with subparts A and B of part 750 of this chapter, as appropriate. The TCU Norfolk should not deny claims that have initially been processed and negotiated by a non-appropriated fund activity, its insurer, or TPA, until the activity or its insurer has clearly stated in writing that it does not intend to pay the claim and has elected to defend the claim in court. [72 FR 53426, Sept. 19, 2007] § 756.9 Claims by employees. (a) Property. (b) Personal injury or death Personal injury or death of citizens or permanent residents of the United States employed anywhere, or foreign nationals employed within the United States. (2) Personal injury or death of foreign nationals employed outside of the continental United States. [72 FR 53426, Sept. 19, 2007]