Post office compensation rules for lost or damaged parcels going abroad?

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Found 19th Nov 2008
I have sold an item on ebay and the buyer lives in new zealand. The cost of the item is £35 which would class it in the £36 compensation if it went missing.
I asked the lady at the post office how it would work as the item is £35 and the postage £17 so she said i would have to purchase extra compensation at a cost of £5.70 to get the postage back if it went missing.

So in other works if it goes missing they will only pay the £35 and not the postage? Surely if it is the fault of them they should pay the item up to the £36 and then the £17 postage as well.
Or will they pay the postage if i got the extra insurance as i know that the royal mail have changed the rules for ebay parcels as in the past you could claim what it would cost to repalce now they will only pay the price the buyer paid for it and as i've never had anything go missing that cost over £36 including the postage before i've never known if the postage is included if over the £36 or not

The buyer of course wants the cheapest option but if it doesn't arrive she can claim the entire amount back off me so i want to make sure that i can actually get the postage back as well in event of it going missing.

hope this makes sense!!

Prob making a mountain out of a molehill but want to make sure i don't lose out if anything goes wrong!

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