You submit a claim either on Royal Mail's website, or from your local Post Office pick up a form. It will need you to enclose the proof of posting, if I remember correctly it has to be the actual proof no photo copy, ( this may have changed? ), and if you do not have a receipt for the item showing it's cost, I used to copy the order details showing money received for the item.
I only had 2 INR's and found RM took their time in refunding but a cheque, yes cheque for the full amount claimed was sent. Others have reported receiving books of stamps, perhaps it depends on the amount claimed, mine was always under £20.
@keelinge