Iphone 4S Lost in Post by Royal Mail?

I have had a screen issue with my iphone 4s so I booked mail in service with Applecare, they sent me the shipment box with return label which I used when posted back to Applecare.
It's 15 days since then and Apple still has not received my handset so chances are that it has gone walking within Royal Mail network somewhere
I do have proof of postage which I obtained from post office when I posted the device. At the moment my only concern is what would happen if  it really has been lost and does not reach Apple Care?
Anyone else has had similar issue? What was the outcome?
PS. I bought this phone on ebay so I do not have original purchase receipt if that matters.
Any input will be much appreciated.............

So hopefully there is some insurance cover
The only people that can help are Apple care themeselves
The must have a procedure to handle lost in Transit, you can't be the first.
You should have an ebay/paypal receipt that confirms your ownership
and the iPhone will be registered through iTunes

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