I sent an item using Australia Post 3KG Express Satchel. It was going from 2000 to 2194 and the item is stuck in "In Transit" state for last 5 days but the item has been lost by Australia Post when you speak with them. The call centre has no idea of its location.
The item worths $700 and buyer is now screaming at me and demanding full refund of money.
Can I claim the whole value from Australia Post including shipment fees as a compensation of lost item?
I seriously don't believe you posted a $700 item without some sort of insurance. That's just plain crazy, especially with all the media coverage around lost and stolen parcels.
I have a feeling you're only covered for something like $50, but can't find the info on their site. You might have to have a better look for yourself.