Royal MAil, missing stolen parcels compensation?

I bought a swimming costume for 拢95 and posted it to a lady. When I posted it they asked about the value and I told them and they said under 拢100 you dont need insurance.
The parcel went missing and never arrived. I had to wait to put in a claim and today I got a cheque for 拢36 to cover the costume and postage!
I am very angry and they said its all they can pay out.
Is this correct? Is there annything I can do?

They offer automatic, standard compensation cover of up to 拢36 for loss or damage to parcels. To extend compensation cover for more valuable items you do have to pay, it's 拢1-00 for up to 拢100.

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