CLAIM HANDLING REGULATION
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1 Approved Sergei Ilyichev ACCS Chairman 20 CLAIM HANDLING REGULATION Effective amended
2 Table of Contents 1. Table of Contents General Carriers Claims to Accredited Agencies Carriers Claims to TCH Requests of Accredited Agencies for Adjustment Claims Raised by TCH Settlement Procedure for Legitimate Claims Claim-related Information
3 1. Terms and definitions Carrier ADM-policy means a list of irregularities pertaining to FARs, reservation/sales, other carrier regulations and penalties related thereto. Warning means a text message generated by carrier or TCH and sent to an accredited agency in response to such agency s irregularities of effective regulatory/technological instruments or carrier rules not requiring loss compensation or penalty payment. Adjustment request (ADM/ACM request) means a document generated by an accredited agency to correct errors in issued traffic documents (including ticketing agents mistakes), failures in computerized systems of TCH/CRS or STD processing bugs (wrong data entries). Adjustment request shall be generated in ADM/ACM format. Legitimate claim means a status of ADM/ACM or adjustment request (SII Status Authorized ), when a positive response was received with respect to claim, or ATSS participant has not objected thereto. ADM/ACM means a document issued for the amount of loss and/or penalty and sent by one ATSS participant to another ATSS participant so as to remedy violated obligations under Model Agreement. Claim means a requisition to correct irregularities pertaining to obligations under Model Agreement or indemnification of damage caused to the claiming party as a result of such irregularities and/or penalty payment. Claim shall be formalized in the ADM/ACM format. SII means TCH System of Interactive Interchange comprising a soft/hardware facility enabling ATSS participants to upload and negotiate regulatory, organizational, accounting or other documents in TCH accounting system in e-format. Standard ADM policy means a list of irregularities of FARs or other rules with relevant penalties that is developed and approved by TCH. Standard ADM policy shall be applied by a carrier, which has not published its own ADM policy. 2. General 2.1 This document sets forth the order and timeframes for claim handling as well as settlement procedures for legitimate claims arising between ATSS participants. 2.2 ATSS participants shall negotiate and handle their claims via SII only. 2.3 SII supports the below claim handling options: - publication and storage of ADM policies, - automatic notification of ATSS participants on ADM policies update, - upload or download of claim from carrier/accredited agency application, - registration of in-coming claims, - automatic ing of carrier claims to accredited agencies, - automatic update of claim status for participants, - business correspondence with files transmission, - timing control (day counter) of carrier claims without response, - status display of any claim raised or received by an ATSS participant, - claim statistics support, - transmission of warnings and 3
4 - transmission of adjustment requests. 2.4 Standard ADM Policy TCH shall approve standard ADM policies and upload the same in SII at least 10 business days prior the commencement of relevant reporting ten-day-period giving effect to such ADM policy TCH shall approve amendments to standard ADM policies and upload the same in SII at least 10 business days prior the commencement of relevant reporting ten-day-period giving effect to such updates Prior to standard ADM upload, carrier may raise a claim on the basis of Model Agreement. 2.5 Carrier ADM Policy Carrier may publish its own ADM policy by uploading it in SII at least 10 business days prior the commencement of the reporting ten-day-period giving effect to such ADM policy Changes to carrier s own ADM policy must be displayed in SII within 10 (ten) business days prior the commencement of the reporting ten-day-period giving effect to such changes Within five business days upon upload in SII, TCH shall investigate the ADM policy of carrier and/or changes thereto so as to validate it against regulatory documents. Once the ADM policy is agreed, it shall be deemed published If a carrier lacks its own ADM policy (or before the same becomes effective), it may raise a claim on the basis of standard ADM policy If a carrier has its own ADM policy, it may not raise claims on the basis of standard ADM policy. 2.6 In case of warnings, carrier may send messages to accredited agency via SII. 2.7 Claim raising procedure is set forth in Sections 3,4,5,6. 3. Carrier Claims to Accredited Agencies 3.1 Carrier shall develop claims to accredited agency (SII New status) in accordance with the ADM policy published in SII. If carrier has not published its own ADM policy, claim shall be developed on the basis of standard ADM policy. The ADM policy effective on the day when the irregularity occurred shall be applied if the relevant claim is raised. 3.2 Carrier shall develop claim/warning: within 9 months, except for interline carriages, as follows: - as of the date of last carriage performed under relevant traffic document, - as of the refund date of the relevant traffic document, and in case of interline carriages - within 15 months as follows: - as of the date of the last carriage performed under relevant traffic document, - as of the refund date of relevant traffic document. 4
5 3.3. Claim shall be raised in compliance with the form set forth in Settlement System Standard "ADM/ACM Submission Form via the System of Interactive Interchange". 3.4 Claims received from carriers shall be communicated to accredited agencies for investigation (SII "Pending" status). Accredited agency should investigate the claim within 30 calendar days, during which an accredited agency may: Acknowledge the claim (SII "Acknowledge" status) Dispute the claim in a reasoned manner (SII Disputed/Appealed status). 3.5 Claims that were not disputed by accredited agency within 30 calendar days shall be deemed acknowledged (SII Acknowledged status). 3.6 Claim disputed by accredited agency shall be communicated to carriers for investigation (SII Disputed/Appealed status). Carrier should investigate the disputed claim within 60 calendar days, during which a carrier may: Confirm that the claim is legitimate (SII "Appeal rejected" status) Withdraw claim (SII "Appeal accepted" status). 3.7 Claims disputed by accredited agency that were not confirmed or withdrawn by carrier within 60 calendar days shall be deemed withdrawn (SII "Appeal accepted status). 3.8 Claims disputed by accredited agency whose legitimate nature was confirmed by carrier in accordance with Paragraph shall be communicated to TCH (SII "Appeal rejected" status). TCH shall investigate such claims within 30 calendar days during which TCH may: Acknowledge the claim (SII Acknowledged status) Reject the claim in a reasoned manner (SII Appeal accepted status). 3.9 Information relating to claims acknowledged in accordance with Paragraph shall be communicated to accredited agency Claims acknowledged in accordance with pp , 3.5, shall be incorporated in exchange files for carriers (НОТ-files inclusive) and accredited agencies Claims that were not settled in accordance with this Regulation may be resolved by carrier and agency in amicable bilateral manner. 4. Carriers Claims to TCH 4.1 Carrier shall develop claims to TCH with respect to accounting data in the below timeframes: With regard to agency computed remuneration no later than 9 month from: - the date of the last carriage under traffic document, - the refund date of traffic document. 5
6 4.1.2 With regard to revenue allocation under М2 agreements no later than 9 months from: - the date of the last carriage under traffic document, - the refund date of traffic document. 4.2 Claims shall be raised in the form set forth in the Settlement System Standard "ADM/ACM Submission Form to ATSS via the System of Interactive Interchange". 4.3 TCH will investigate the received claims within 30 calendar days (SII "Pending" status). 4.4 If a claim related to agency computed remuneration is acknowledged (SII "Acknowledged" status), TCH will communicate information on acknowledged claim to accredited agency. Thereby, claim will be incorporated into the exchange files for carriers (HOT-files inclusive) and accredited agencies. 4.5 If a claim related to revenue allocation in terms of М2 agreements is acknowledged (SII "Acknowledged status), TCH will send information on acknowledged claim to the second carrier involved in the carriage. Claim will be incorporated in exchange files for carriers (НОТ-files inclusive) and accredited agencies. 4.6 TCH shall render a reasoned response with respect to rejected claims (SII "Rejected" status). 5. Requests of Accredited Agencies for Adjustment 5.1 Accredited agency may independently develop and send an adjustment request to TCH for investigation (SII "New" status): when errors were found in TCH computerized systems/crs (faults) or mistakes in STD processing (wrong data entry), when errors were found in issued traffic documents (ticketing agents mistakes), provided that carrier s ADM policy permits such independent requests. 5.2 If carrier s ADM policy forbids adjustment requests for accredited agencies in case of errors detected in issued traffic documents, an accredited agency may send a message to carrier via SII requesting to develop an ADM/ACM. 5.3 Accredited agency shall develop adjustment requests no later than 9 months from: - sales (exchange) date of sold (issued for exchange) traffic document, - refund (exchange) date of refunded (accepted for exchange) traffic document. 5.4 Adjustment request shall be submitted in the form set forth in the Settlement System Standard "ADM/ACM Submission Form to ATSS via the System of Interactive Interchange". 5.5 TCH will handle adjustment requests from accredited agencies within 30 calendar days (SII "Pending" status). 5.6 TCH enjoys the following rights in terms of adjustment requests when errors were found in TCH computerized systems/crs (faults) or mistakes in STD processing (wrong data entry): Acknowledge the request (SII "Acknowledged" status) Reject the request in a reasoned manner (SII "Rejected" status). 6
7 5.7 In case of adjustment requests related to revealed errors in issuance of traffic documents (ticketing agents mistakes): TCH will communicate adjustment requests related to errors in issuance of traffic documents (ticketing agents mistakes) to carriers, provided that carrier s ADM-policy permits accredited agencies to develop requests independently (SII status "Under discussion with airline") TCH will reject adjustment requests when errors were detected in issuance of traffic documents (ticketing agents mistakes), if carrier s ADM-policy prevents accredited agencies to develop adjustment requests (SII "Rejected" status). An accredited agency may send a message to the carrier in accordance with Paragraph Carrier shall investigate adjustment requests received under Paragraph within 60 calendar days (SII status "Under discussion with airline") Carrier is entitled to: Acknowledge an adjustment request (SII Acknowledged status) Reject adjustment request in a reasoned manner (SII "Rejected" status) Adjustment requests that were neither accepted nor rejected by carrier within 60 calendar days shall be deemed authorized (SII "Authorized" status). 5.8 Acknowledged adjustment requests (SII "Acknowledged" status) in accordance with pp , and shall be incorporated in exchange files for carriers (НОТ-files inclusive) and accredited agencies. 5.9 Information related to rejected requests with reasons thereof shall be communicated to accredited agency (SII "Rejected" status). 6. Claims Raised by TCH 6.1 TCH is entitled to raise claims independently (SII "New" status) when errors were revealed in TCH computerized systems/crs (faults) or in STD processing (wrong data entry). 6.2 TCH shall develop claims according to form set forth in the Settlement System Standard "ADM/ACM Submission Form to ATSS via the System of Interactive Interchange". 6.3 Claims developed by TCH will be incorporated in exchange files for carriers (НОТ-files inclusive) and accredited agencies (SII "Acknowledged" status). 7. Settlement Procedure for Authorized Claims 7.1 Authorized claims or adjustment requests (SII "Authorized" status) shall be incorporated into exchange files for carriers (НОТ-files inclusive) and accredited agencies (SII "Acknowledged" status) as well as in the report per the reporting ten-day period when such claim was authorized, and shall be compensated in the timeframes prescribed by the effective Model Agreements. 7.2 Claims may be raised either in RUB, USD or EUR. 7
8 7.2.1 Ticket-related claim shall be developed in the same currency as used in the report for ticket being the subject of the claim Claims not associated with tickets shall be raised in RUB. 7.3 Legitimate claims shall be settled via TCH in the timeframe prescribed by the effective Model Agreements. 8. Claim-related Information 8.1 Legitimate claims (SII "Authorized" status) shall be incorporated in exchange files for carriers (НОТ-files inclusive) and accredited agencies as well as in the report per the reporting ten-day period when such claim was authorized. 8.2 Information about all claims is accessible through SII Information shall be retained in SII for 3 years as of the day when decision on claim was taken Each ATSS participant can display: - claims raised by this participant, - claims received by this participant from other participants Data and history related to claims raised are available for display (including claim raising dates, authorization/rejection or argumentation). 8.3 Published ADM policies and changes to such policies shall be retained in SII at least 3 years as of their expiration date. 8
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