Section 15: Compensation payable for loss or damage of insured article.

(1) Compensation for the loss or damage in the post of an insured letter or parcel-
(a) shall not exceed the amount of the actual loss or damage;
(b) shall not be paid for a packet containing a prohibited article or for a packet which has been delivered without external trace of injury and has been accepted without remark; or
(c) arising from tempest, shipwreck, earthquake, war, or other cause beyond control shall be admitted if made not more than a year after the packet was posted.
(2) No legal liability to give compensation in respect of any packet for which an insurance fee has been paid shall attach to the Postmaster-General either personally or in his official capacity.
(3) Compensation may be paid for the loss or damage of an uninsured letter or parcel at the rates stipulated in the Post Office Guide, published by the Postmaster-General, in the following circumstances-
(a) if the compensation paid will not exceed the value of the contents of the lost letter or parcel or damage thereto;
(b) if the loss or damage occurred while the parcel was in the custody of the Postmaster-General;
(c) if the loss or damage occurred through no fault of the sender; for instance, insufficient packaging, parcel not secured in such a manner that the contents could not be withdrawn without the cover showing obvious signs of violation or insufficient address.
(4) Provided that Compensation shall not be paid for the loss or damage of an uninsured parcel in any circumstances under which it would be refused in the case of a registered or insured letter or insured parcel.
(5) The final decision on all questions of compensation shall rest with the postal administration of the country in which the loss has taken place.