The following freight claims policy & procedures are reserved for parts that were properly skidded or packaged and either lost or may have been damaged while in possession of the transportation company. It is important for Team PRP Buyers and Sellers to follow the claims procedures in support of objective claims determination.

1. Responsibilities:
   
   1. The Seller/Owner of the part is always responsible for prompt and proper filing of freight claims for their lost or damaged part utilizing EZ Runner and referencing the tracking number.  This applies to the original sale or when the part is being returned.
   2. The Buyer of the part should assist the Seller/Owner of the part recover freight claims by following freight claims procedures.
   3. Team PRP’s transportation providers are responsible for prompt claim review, determination, and payment of freight claims.
   4. Team PRP’s Director of Logistics manages the freight claims processes to ensure claims are reviewed and paid in a fair and timely manner.
2. Filing deadlines:
   
   1. Claims for damage must be filed within 5 business days of final scanned receipt.
   2. Claims for a lost part must be filed within 15 business days of the last scanned location on either the initial or return shipment.
3. Filing requirements: 
   
   1. The part being claimed for damage must be graded using EZ Runner within 48 hours of receipt and include the description of damage and include clear digital images of the part and its packaging.
   2. Claims must be submitted using EZ Runner and include 1) Reason (lost part or damage); 2) When (during original shipment or the return); 3) Is the part repairable or total loss? It is important to file the claim accurately as repairable or a total loss.  4) Dollar amount of claim (Invoice amount or repair cost); 5) Copy of the original invoice, or repair estimate or credit memo; 6) Digital images of the packaging and the part upon arrival. (see section 3a).
   3. When a part is being returned the Buyer should assist the Seller/Owner of the part recover freight claims. An objective review of a return part claim requires documentation of the part and its packaging upon arrival and just prior to its return to rule out part damage while in possession of the Buyer.  The Buyer must:
      
      1. Use the Return Authorization function in EZ Runner when returning a damaged part within 48 hours of receipt. Never return parts to the Seller without notification, documentation or using manually added tags.
      2. Repackage return parts in accordance with Team PRP parts prep and packaging guidelines. The return part should be repackaged as if it was a live part.
      3. Document the condition of the part being returned by uploading photos of the part and its packaging into EZ Runner just prior to shipping.
4. Determination and payment process: Claims will be reviewed, and determinations will be made within 30 days of receipt of a fully completed and properly documented claim.  Claim decisions will be documented in EZ Runner and the Transportation Provider will endeavor to settle with the claimant within 15 business days after determination. Payouts to be made the 15^th and 30^th of each month.
5. Claim liability: Team PRP transportation providers and inset yards trucks equally share liability for freight loss and damage, unless it can be determined the Transportation Provider or insert yard(s) lost or damaged the part.
6. Payout amount:  Total loss and lost part claims have a cap maximum payout to no greater than 50% of the cost of goods based on an industry average buying formula. Core values are not included.  And the transportation provider reserves the right to take ownership of any part in which a total loss claim is accepted. Repair claims will be paid at 100% of agreed repair cost estimates not to exceed 50% of the cost of goods. 
7. Payment distribution:  For illustration purposes, the following example will be used in each scenario: A total loss part is claimed with an invoice amount of $2,000 is accepted. The claim payout amount is 50% cost of good or $1,000.
   
   1. The claimant will receive a check from either Out of the Box Logistics (OOTB) or Midwest Automotive Transportation (MWAT) for the full payout amount when either one is solely liable for the loss or damage.   Using the example; the claimant will get a check for $1,000 from the PRP transportation provider responsible for the loss or damage.
   2. The claimant will receive separate checks from OOTB and MWAT for their share of the full claim amount when both share liability for the loss or damage. Using the example, claimant will get a $500 check from OOTB and a $500 and a check from MWAT.
   3. When insert carrier(s) are part of a route and share liability for the loss or damage.  The insert yard should reimburse the claimant for their share of the claim.  The PRP transportation provider(s) will pay the claimant their equal portion of the claim payout, and the insert(s) yards are responsible for their equal portion.  Calculation as follows:
      
      1. When one insert carrier is part of a route with either OOTB or MWAT: The PRP transportation provider will pay 50% of the payout amount, and the insert yard is responsible for 50% of the claim payout. Using the example: The claimant will get a check from OOTB or MWAT for $500.  The insert yard is responsible for the other $500.
      2. When one insert carrier is part of a route with OOTB and MWAT: Each PRP transportation provider will pay 33.33% of the payout amount, and the insert yard is responsible for 33.33% of the claim payout.  Using the example, the claimant will get a $333.33 check from OOTB and a $333.33 from MWAT.  The insert yard is responsible for the other $333.33.
      3. When two insert carriers are part of a route with either Out of the Box Logistics or Midwest Automotive Transportation: The PRP transportation provider will pay 33.33% of the payout amount, and each insert yard is responsible for 33.33% of the claim payout.  Using the example: The claimant will get a check for $333.33 from OOTB or MWAT. And the insert yards are responsible for $333.33 each.
      4. When two insert carriers are part of a route with OOTB and MWAT: The PRP each transportation provider will pay 25% of the payout amount, and each insert yard is responsible for 25% of the claim payout.  Using the example: The claimant will get a $250 check from OOTB, a $250 check from MWAT.  And the insert yards are responsible for $250 each.