Home Insurance Other Insurances Insurance for Parcel Services – Methods for insuring Parcel

Insurance for Parcel Services – Methods for insuring Parcel

Insurance for Parcels

Insurance for parcel service

Postal services are still in use and most often registered and important letters are still sending by post. Have there been circumstances where you send a letter by post and worried if it will be lost in transit or if it will reach the correct person? Well now it is possible to keep these worries at bay and insure your parcel sent by post by adding insurance of parcel.

Purchasing insurance for parcel helps protect your valuables send by post or mail without being lost or experiencing any damage, you may insure them at all post offices and it covers all the risks encountered during transmission. The pre-payment of postage, insurance fee and registration on insured articles is compulsory.

What can be insured?

Registered letters with value less than or equal to Rs.600 at branch post offices, value payable registered letters up to Rs. 1 lakh in other post offices, registered parcels where the insured value shall not exceed the real value of the contents of insured article and value payable registered parcels like gold bars, precious stones or bank notes shall be insured for the original value of the content. Some items like coins, bullion, platinum, precious stones, jewellery, currency or bank notes, gold or silver articles can only be sent by post in insured letter or insured parcels.

Insurance procedure for parcel by postal service

The article which you are intending to insure must be presented at the post office. On the address side of the cover, mention the insurance value of the article in words and figures without making any overwriting or corrections. Fill up your Address and contact details on the cover of the the insured article.

The post office will also give a receipt to the person who presents the insured article at the post office. Any error or faulty address must be mentioned by the sender before applying for insurance as the post office will not be liable for any loss or damage thereby compensation of the insured article.

The insured article must be packed and sealed by identical seals in fine wax so that it cannot be opened without breaking open the seal. If the article is gold, silver bullions or coins, they must be encased in wooden or metal cover and wrapped with cloth or thick paper. For the safety of the article registered envelops can be used for sending the insured letters.

In case of loss or damage of the insured article

No compensation will be payable if there has been a mis-delivery arising out of incorrect address fraud or improper packing on the part of the sender, no intimation given on loss of article in three months from posting etc. If it is a mistake on the part of the postal service, then compensation provided will be equal to the original value of the insured article.

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  1. From the above article, it seems that even after the insurance is taken , the burden hardly seems to abate on part of the sender. And, how will the post office account for the lost bullion? Assume that I send a parcel dated November 1st 2015. If it gets lost midway and I am eligible to claim for the compensation, how much compensation will be given? How will the amount be calculated? Will it be current gold price being traded in markets?

  2. If you’re a seller online, like on eBay, then parcel insurance is a great investment. The post, like every other system, can be unreliable and subject to losses. When you are an online seller and rely on this service for delivery of your product, then parcel insurance can protect your business costs if your stock is misplaced in the postal system.

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