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@hippy
Hang on.. "no commercial value" but what about just "value".
The gift still has value so why wouldn't the insurance you get for the package cover the item's value? If I send £3000 diamond ring through the post to my mum and get it insured, why wouldn't they pay out if it was lost? Or, why would it be charged duty (I could fly there with it in my suitcase and not pay duty)?