Final Draft/Rev.5 compensation policies in respect of loss of or damage to postal items. (2) Subject to subregulation (3), a postal licensee shall pay compensation for loss or damage of postal items. (3) A postal licensee shall not pay any compensation for loss of or damages to a postal item where(a) the postal item is prohibited under these Regulations; (b) in the case of an insured postal item i) it has been insured for an amount in excess of its value, ii) a false statement in relation thereto has been made by the sender or addressee for such item; iii) the addressee thereof has signed and returned the receipt thereof without objection, iv) any bill of exchange, bond, coupon or other negotiable security particulars sufficient to identify such contents are not supplied to the postal licensee, or v) the cover or seal of such item bear apparent trace of theft or damage. Criteria for transmission of prohibited postal items 82. Prohibited postal items may be exceptionally conveyed by post in a manner as may be determined by the postal operator and approved by the Authority. Postal security and safety 83. (1) Every postal licensee shall ensure that all necessary steps are taken to improve mail security and combat postal crimes. (2) For the purposes of subregulation (1) “postal crime” includes - 36 (a) mail violation and secretion; (b) posting of mail bombs; (c) illicit drug or firearms trafficking; (d) crime against postal property and identity; and