Postal Manual Vol. VIII - India Post

79. Deleted.
80. Compensation for loss of, or damage to, inland insured articles. – (1) In dealing
with claims for compensation for loss of, or damage to inland insured articles or their contents, the
Head of a Circle should be guided by the conditions laid down in the Post and Telegraph Guide
regarding the payment of compensation in such cases, and should also observe the instructions
given in the following paragraphs.
(2) Claims for compensation for loss of insured articles or of any of their contents should
be decided by the Head of the Circle in which the office of posting is situated, while similar claims
in cases of damage should be decided by the Head of the Circle in whose jurisdiction the office of
delivery is situated. If a claim is admitted, the Head of the circle concerned should issue the
necessary instructions for payment of compensation to the head office (if in his circle) to which the
office of posting is subordinate, or request the Head of the Circle in which that office is situated to
issue such instructions, the amount of compensation to be paid and the date on which it is payable
being specified in either case. The amount of compensation paid, and the date and office of
payment should be stated in the report to be submitted to the Director-General under rule 176 of
the Posts and Telegraphs Manual, Volume V by the Head of the Circle to whom the head office
concerned is subordinate.
(3) (a) Should the entire contents of an insured article which had been lost be recovered
before payment of compensation, they should be made over to the sender. Should only a portion of
the contents of the insured article be recovered before payment of compensation, it should be made
over to the sender and the amount to be paid as compensation will be either (I) the difference
between the amount of the original loss and the value of the recovered contents, or (ii) the amount
for which the article was insured. – whichever is less.
(b) In the event of the whole or any potion, of the property being recovered after payment
of compensation, it should be dealt with in accordance with the instructions given in the Post and
Telegraph Guide.
(c) When any recovered property cannot be returned to the sender under the provisions of
the clause (b) of this paragraph, it should be sold under the orders of the Head of the Circle in
which the office of posting is situated. So much of the proceeds as the Head of the Circle is
entitled to retain, should be credited to Government in the accounts of the head office by which the
compensation was paid and the balance, if any, made over to the sender of the insured article.
(4) The same procedure should be followed whether or not a postal official is held
responsible for the loss or damage and required to make good the value of the insured article or
any of its contents. This should not affect the payment of compensation to the sender, which
should be made irrespective of any action taken against the official in fault. The amount (if any)
made good by the official should be credited in the accounts of the office from which he draws his
pay.
(5) In the case of claims for compensation for the loss of halves of currency notes enclosed
in insured articles, compensation to the extent admissible under the rules should be paid in the
ordinary course in accordance with the instructions given in paragraphs (2) and (3), above on the
sender making over to the post office the corresponding halves of such of the notes in his
possession as would cover the amount of compensation payable, and this he should always be
asked to do as soon as the loss is brought to light and responsibility for the loss is accepted. The
Head of the Circle should then tender the latter halves to the currency Office and apply for their
full value. The Currency Department will pay the full value of the Notes only if it is satisfied that
the missing halves have been lost in such circumstances that there is no chance of their ever being