40. Power to pay compensation in respect of postal articles insured

Subject to such conditions and restrictions as the Minister, with the approval of His Majesty the Sultan and Yang Di-Pertuan, may by rule prescribe, if an insured postal article or any article of pecuniary value enclosed in or forming part of an insured postal article is lost or damaged while in course of transmission by post, the Postmaster General may pay to the sender thereof, if in his opinion such person establishes a reasonable claim to compensation, such sum as he may think fit not exceeding the amount for which such postal article has been insured.

No person shall with intent to defraud, insure a postal article for a sum greater than the real value of the contents thereof, and where the