Purchase of Postal Insurance under Government Losses in Shipment Act

The General Services Administration questioned whether the Government Losses in Shipment Act prohibits federal agencies from purchasing postal insurance to obtain indemnity unless it is specifically required by law. Neither the act nor the government's general self-insurance policy prohibits federal agencies from using registered mail in order to obtain greater protection in the handling and delivery of mail, but both the act and the self-insurance policy prohibit the use of insured mail since insured mail provides no special or additional service in addition to the indemnity it offers.