Proceedings shall lie or, in Scotland, be competent against a universal service provider under this section, but not otherwise, in respect of relevant loss of, or relevant damage to, an inland packet in respect of which the universal service provider accepts liability under this section in pursuance of a scheme made under section 89.

The references in subsection (1) to relevant loss or damage are to loss or damage so far as it is due to any wrongful act of, or any neglect or default by, an officer, servant, employee, agent or sub-contractor of the universal service provider while performing or purporting to perform in that capacity his functions in relation to the receipt, conveyance, delivery or other dealing with the packet.

No proceedings shall lie or, in Scotland, be competent under this section in relation to a packet unless they are begun within the period of twelve months starting with the day on which the packet was posted.

A universal service provider shall not be liable under this section in respect of a packet of any description unless such conditions (if any) as are required by a scheme under section 89 to be complied with in relation to packets of that description at the time when they are posted have been complied with in the case of the packet.

For the purposes of this section and section 92 a scheme under section 89 may define a description of packet by reference to any circumstances whatever (including, in particular, the amount of any fee paid in respect of the packet in pursuance of the scheme).

In this section “inland packet” means any postal packet which is posted in the United Kingdom for delivery at a place in the United Kingdom to the person to whom it is addressed.