Section 220(3) in The Navy (Pay And Allowances) Regulations, 1966
(3)In respect of claims for loss or damage sustained by sailors, the following procedure shall be followed, namely:(a)immediately after the loss or damage, any articles of absolute necessity so lost or damaged shall be issued and their value charged in the ship's cash account and intimated to the pay accounting authorities for the purpose of recovery from the sailors to whom such issues have been made. These charges need not, however, he actually deducted from the pay of the concerned sailors, pending the result of necessary investigation;(b)the investigating officer shall assess the compensation proposed (if any) in money, articles of uniform clothing being assessed at the issue price of new articles. In no case compensation shall be awarded for loss of articles of clothing, and the like, which are in excess of the regulation kit (compulsory and optional) of the sailors held by the concerned sailor at the time of the loss or damage;(c)the report of the investigating officer shall be submitted to the Chief of the Naval Staff who shall award such compensation as he may consider equitable in each case. The amount awarded shall then be credited in the name of the sailor concerned in the Individual Running Ledger Account any debits incurred uinder clause (a) being liquidated before payment is made.
