Wayne State University

Aim Higher

Policies-11

10.2.1 Claims Administration

POLICY

All claims will be administered by the Office of Risk Management (ORM).

Personal property of employees and students is not covered under the university's Risk Management program except:

  1. cases involving specific high risk programs, and,

  2. cases where the University appears negligent.

No department is to promise payment to any person, offer voluntary payment or advise that the university will pay a loss without the approval of the Office of Risk Management.

In the event other valid and collectible insurance is applicable to a loss, the university and/or insurance company's payment shall be excess after all other insurance has been exhausted. In order to improve the university's loss experience, to encourage the safeguarding of relatively portable equipment, and to instill a sense of loss conscientiousness throughout the university, the following policies are also in effect:

  • Claims Involving University Property or Equipment

a. At Central Administration's option, it may pay for, repair or replace damaged or stolen university property as a result of an insurable loss.

b. The maximum amount payable is the smaller of:

  • The actual cash value of the damaged or stolen property at the time of loss,

Or

  • The cost of repairing or replacing the damaged or stolen property with other of like kind or quality.

c. A $500 deductible will be applicable to each insurable loss. In the event of theft of university equipment, the deductible will be waived if the equipment was secured by a university - approved locking device at the time of loss. (Refer to Section 9.2, Equipment Security, of the APPM.)

d. No payments will be made for mysterious disappearance losses. The term mysterious disappearance is given to those incidents which occur without evidence that a loss occurred, e.g., no visible signs of forced entry, forcible theft, etc.

e. Loss adjustment is subject to verification of recorded values in the university's property inventory

  • Other Claims: All other claims must be submitted to the Office of Risk Management in accordance with the applicable reporting procedure (see 10.2.2, Claim Reporting).

No payment for any insurable loss will be made to a department that has not taken action on hazardous situations communicated to them by ORM, until such situation is corrected.