Insurance covers all risks in course of transmission by Post for valuable contents.

Limit of Value

A Branch Post Office, if authorised, can insure an article upto Rs.600/-. All other Post Offices can insure an article upto Rs. 20,000/-.

What must be insured

1. Gold or silver, coin or bullion, platinum, precious stone, jewellery, Government currency note, bank note, article of gold or silver, revolver and pistol,

2. Value Payable article of value exceeding Rs.250/-, except for railway receipt, bill,
     invoice, document of no intrinsic value, and book-packet containing printed book(s) or paper(s).

Insured Value

Insurance should not exceed the actual value of contents.

Government currency note, bank note, gold as coin, bullion or ornament, any article of gold or any combination of these, should be insured for the actual value.

Other Conditions

Insured value should be written in words and figures on the face of the article without any correction.

The sender should declare the value when the contents are gold as coin bullion or ornament, 
any article of gold, Government currency note, bank note or any combination of these.

Name and address of the sender should be given on the bottom left corner of the address side.

Packing

Every letter tendered for insurance must be enclosed in a strong cover which must be securely fastened and sealed by means of identical seals in fine wax reproducing a private mark and affixed in sufficient number so that it cannot be opened without either breaking the seal or leaving obvious traces of violation. No lable of any kind should be affixed by the sender tosuch a cover but cut out labels the maximum size of which is 1-2" X 3" (3.8 cm. X 7.60 cm.)  with frank impressions as postage stamps on the cover of an insured articles may be accepted. An envelope with black or coloured border or a transparent panel must not be used. The seals must be placed over each flap or seam of the cover and if the cover is tied round  with string or tape a seal must be placed on the end where they are tied. As an additional precaution (if the contents admit of it) a thread should be passed through the cover and its contents and tied the knot being placed under the Central seal. The seals on (i) an ordinary envelope, and (ii) and embossed registration envelops should be placed as shown below:-

Every parcel tendered for insurance must be packed carefully and substantially, with due regard to the nature of the contents and the length of the journey and must be sealed with wax or lead bearing a private mark, in such a way that it cannot be opened without either breaking the seal or leaving obvious traces of violation. Seals must be placed over each joint or loose flap of the covering of a parcel and if string be used in packing a seal must be placed on the ends of the strings when they are tied. If a parcel contains gold or silver bullion or coins it must be packed in a strong case of wood or metal with an outer covering of cloth or stout paper.

All the seals affixed to an insured article must be of the same kind of wax and must bear distinct impressions of the same private device. The device must not be that of a current coin or merely a series of straight curved, or crossed lines.

Booking

The article with postage, registration fee, insurance fee and filled Acknowledgement Card, should be presented at the counter of the Post Office. Receipt in the prescribed form is granted to the sender.

Compensation

Intimation of loss of article or contents, or damage to contents should be given to the Post Office within three months from the date of booking together with the original Post Office receipt. Compensation for the actual loss of , or damage to, the contents, limited to the insured value, is payable to the sender.

No compensation is payable in the following cases :

1. where there has been mis-delivery arising out of incorrectness or incompleteness 
   of the address written by the sender;

2. where there has been fraud on the part of the sender or addressee;

3. where the insured article has been delivered to the addressee, and he has signed 
   and returned the receipt therefore;

4. where the sender has not given intimation of the loss within three months from the 
   date of posting;

5. where the loss or damage was due to improper or insecure packing;

6. where there is no visible damage to the cover or seals it being understood that the
   sender must so pack the letter or parcel that its contents cannot be touched without visible damage as aforesaid being caused;

7. where the insured article contains Government currency notes, bank notes, gold coin or bullion or any combination of these, and has not been insured for the actual value of the contents;

8. in the case of the loss of halves of currency notes.
   

If any contents are recovered after settlement of claim, it will be restored to the sender, where the value of the recovered contents plus the amount of compensation paid is not  more than the actual loss. It it is more, the entire recovered contents will be restored, on the sender paying the excess amount, or else only contents  to the due extent, in 
case that is possible, will be restored.