law: Indian Post Office Act, 1898 
  33. Liability in respect of postal articles insured 
  Subject to such
  
  conditions and restrictions as the Central Government may, by rule, prescribe, 32[the
  
  Central Government] shall be liable to pay compensation, not exceeding the
  
  amount for which a postal article has been insured, to the sender thereof for the
  
  loss of the postal article or its contents, or for any damage caused to it in
  
  course of transmission by post:
  Provided that the
  
  compensation so payable shall in no case exceed the value of the article lost
  
  or the amount of the damage caused.