Question re damaged item and USPS insurance

I was just notified by a buyer of 4 L&C sets I sold on Ebay that the sets arrived smashed I shipped Prio Mail and did insure them. What is the procedure for filing a claim for damage. Does the buyer have to ship everything back to me and I do it on my end, or does he file a damage report on his end? What kind of settlement can I expect for a damaged item on this kind of thing?
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Proof of Damage or Loss
If the article was damaged - or if some or all of the contents were missing - take the article, box, wrapper, and all packing materials to your local Post Office immediately. If the article was lost, submit any of the following as proof of loss: