Does royalmail offer refund on franked parcels?

[taerese]

I want to send some franked parcels via royalmail but I am having a second thought on how they will deal with a lost parcel considering the fact that my ebay/PayPal are stealth so if I was to provide the proof of item cost, the seller name would be different from my realname I registerd for the franking machine plus I will be sending this item as second class small parcel. No addons like signed for or guaranteed delivery or so. I will just collect proof of postage at the post office.

I dont want to use hermes since I have a franking account. Does anyone has experience with this? Would I be able to claim for refund if the item is loss or reported as not received by the buyer?

Thanks