I was told that you can inform the PO that the 
item was damaged, but can be restored/repaired 
and they will allow you to keep the item. You'd 
need to have an estimate for repairs, and then 
they will refund THAT - not the entire insured 
value.  If you want a full refund, you will need 
to turn over the cel which will be destroyed. To 
make a full claim, you would need a "receipt" - 
which a printout of the ebay auction page would 
be sufficient (I've had to do this with a 
completely mangled package and that was fine). 
You'll get a refund in about 4 weeks. 

You can email Andi Kostka, who does professional 
cel restoration work here: buffalow@olypen.com  I 
don't know if you'll be able to get an estimate 
for repair work without sending the cel to her 
first though.  She lives in Washington state.

Good luck, I hope it works out. =/