This paragraph provides guidance to determine the applicable law for assessment of liability.
(a) A claim is settled under the law and standards in effect in the country where the incident occurred. In calculating the amount of any lump sum award, the present value of any periodic payment upon which the award is based, is computed, unless the law of the place of occurrence prohibits it.
(b) Contributory negligence committed by the claimant, claimant's agent, or employee is not used as a bar to recovery unless local law or custom requires it. If the comparative negligence doctrine is used, the percentage of negligence of each party is reflected in the apportionment of liability. The amount of damage sustained by both parties is apportioned according to local law.
(c) The following principles of the collateral source doctrine are applied in settling a claim except where local law provides otherwise:
(1) Any sums the claimant recovers from collateral sources, including proceeds of property insurance the claimant paid for are not deducted from the claim except when those sums are from:
(i) The US Government.
(ii) A US military member or employee.
(iii) A Joint tort-feasor.
(iv) An Insurer of Sec. 842.66(c)(1)(i), (ii), or (iii), above.
(2) Do not deduct insurance or any other payments where the US military member or employee would have to make reimbursement.