Chapter-4

Chapter-4  Insurance
32. Insurable articles and limit of insurance: 

(1) Insurance may be done up to a value of Five Thousand Rupees in the domestic postal service and as per
agreement between two countries in case of foreign postal service for articles that may be sale able and currency notes amounting up to Five Thousand Rupees or letter containing coins or parcel may be sent through postal insurance, the post offices that may insure, deliver the insurance and distribute the Notification papers
for insurances shall be as prescribed by the Director General. Provided that, with the exception of Nepal and India, currency notes or coins may not be sent.
(2) Subject to the provision of Sub-rule (1) any articles that may be sale able or currency notes or coins must be compulsorily insured while sending by post.

33. Insurance Charge:

Additional insurance charge shall be levied for insurance of postal article over and above the postal charge and registration fee as prescribed by the Government of Nepal.

34. Method of Insurance:

While insuring postal article, it shall be done as following:
(1) Advance payment must be done against postal and other charges while insuring by affixing postal stamp or franking.
(2) Each insurance item must be well enclosed in a robust envelope covering, casing or box sealed in an unbroken, clean and unbreakable manner by employing a single coloured clean wax (Laha) with some personal emblem.
The seal should not be of money coins or made of straight or crookedly cut lines.

(3) The envelope, cover, box or case must not be black or its edge must not colourful and the internal portion must not be visible or recognizable from any side.
(4) The envelope, covering, box or case must be stuck when closed and wax seal affixed over each joint. In case, any item is sent by envelope, it should be pressed by thread or bound by tape and wax sealed at the knots.
(5) In case, of the article to be sent by keeping inside a cover, box or case contains may stitches while affixing wax or lead seal over every inch, the insured item should not be able to be opened for observing the contents without opening the wax seal.
(6) The cover case or box must be simple, of robust article and wrapped in strong paper or cloth. There shall be ample space in it for affixing the label and symbol of the post office.
(7) On such article to be insured, the insurance value must be written in figures and letters in a legible manner without any corrections, addition and deletion.
(8) The name and address of the sender must be written on the left side of the front of the article to be insured and the name and address of the sender on the right side without canceling or correction in full and clearly.

35. Receipt:

In case, approval has been given by the post office to insure insurable items that have been submitted within the prescribed time, the sender shall be provided with a separate receipt for each item.

36. Return Receipt:

For each insured item, the sender shall be given a return receipt duly signed by the addressee or its authorized person free of charge by the post office.

37. Insured item to be returned:

The concerned post office shall be required to return an insured item under the following circumstances:
(a) If the delivery of the insured item is not taken by the addressee Ten days after notification of its arrival, or
(b) If the addressee refuses to accept the insured item or the addressee is not found at all or delivery could not be done on account of the death of the addressee, or
(c) If the addressee has left the previous residence and gone elsewhere or the insured item has been transferred to a post office without the power to deliver it and within Ten days of such transfer, the addressee or its authorized person cannot be traced even after attempts to do so by the post office and the items that are not being able to be delivered,
Provided that, if the addressee has gone outside of the delivery areaof the concerned post office but having been informed of the arrival of the insured item from the post office or by any other manner, the person notifies the concerned post office within Ten days as specified in Clause
(c), the insured item may be kept in the post office for another Fifteen days. In case the addressee or authorized representative does not take delivery even within this period, upon the expiry of Fifteen days, the insured item
shall be returned to the sender.

38. Conditions for compensation and restrictions: In case an insured postal article or any portion of it under dispatch by post is lost or damaged, the compensation pursuant to the Act shall not be provided under the following
circumstances:
(a) In case, a wrong delivery has been made on account of the address written by the sender being insufficient or incorrect, or
(b) In case, the sender or addressee has been proved to have committed forgery, or
(c) In case, the addressee has already taken the delivery by signing the return receipt, or
(d) In case no complaint has been filed up to Six months following the date of submitted to the post of loss or damage or missing state of the issued item, or
(e) In case of loss or damage on account of faulty and unsafe packing, or
(f) In case of visible damage to the exterior portion of the postal article or wax seal, or
(g) In case currency notes or other articles of exchange value or both were enclosed but not issued on their actual value, or
(h) In case, harm and damage has been caused by nature of the insured article, or
(i) Loss or damage has been caused by circumstances beyond control (force majeure).

39. Method of compensation:

Compensation shall be provided in the following manner:
(a) The sender shall be entitled to the exact value equivalent to that of the loss caused by the article having been subject to loss, theft or damage but not exceeding in any event the insurance value.
(b) Indirect damage, profit or loss shall not be considered.
(c) Compensation shall be calculated on the basis of the prevalent value at the place and time of an item of same nature. In the absence of a prevalent value, the value shall be determined on the basis of the general price of the
article.
(d) Except for a circumstantial order by the Director General to conduct an investigation, payment of compensation shall be made as soon as possible and within Six months of inquiry in case of delay.