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Hi Robin,
Assuming you sent a parcel to someone, and you have Aust Post saying it was delivered to the correct address, I would say that you have fulfilled your responsibilities.
The onus would be on him to go to aust Post, quoting the tracking number, and making a claim.
If the tracking means it was "registered" then it will be automatically insured for up to $100.
If it is just tracking but unregistered (if this is possible) then it will be up to him to convince Aust Post that they are at fault.
For parcels of value greater than $100, it is always wise to ask the recipient if they are willing to pay the extra for insurance. If not, they take the risk of damage or non-delivery.
Although, I must admit I have sometimes insured Astro items at my own cost, just for peace of mind.
Good luck with this.
Hope all works out well.
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