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.