I just spent a length of time browsing through PayPal
policies.  All I can find is that the rules of the
shipper must be followed.  For USPS mailing rules,
this is the reference:
------------------------
Seller Tools - PayPal Shipping - U.S. Postal Service

 Does U.S. Postal Service® offer insurance?

 Yes, indemnity coverage is available online through
PayPal for up to $500.00 USD for lost, rifled, or
damaged articles. Insurance available at post office
locations provides coverage up to $5,000.00 USD.
Insurance purchased online cannot be combined with
additional insurance purchased at a post office. 

You can purchase USPS insurance online with: 
Express Mail® - Express Mail provides insurance up to
$100.00 USD free of charge. Additional incremental
insurance up to $500.00 USD costs $1.00 USD. 
First-Class Mail® parcels 
Priority Mail® 
Parcel Post® 
Global Express Mail - Global Express Mail provides
insurance up to $100.00 USD free of charge. Additional
incremental insurance may be purchased at a local post
office. 

For Global Airmail Parcel Post®, you may purchase
insurance at the post office. The amount of insurance
coverage is contingent upon the destination country.
For Global Priority Mail®, insurance is not available
for purchase online or at the post office.
 -------------------

Summary, as I see it -- Global Express has some
insurance built it.  Global Airmail regular depends on
the receiving country.  The lowest level, Global
Priority, has no insurance.

I think the policy stated on that eBay auction is
really the seller's policy, not Paypal.  Or it's the
rule in one of the countries that he/she has shipped
to.  The rules for sales in UK and other countries may
be entirely different. 

If someone wants to bid on this item, perhaps they
should question the seller, first, for the source of
the statement.

Remember -- you can find 'anything' on eBay!!!  <G>

Alice in Oregon -- where it's my DH's birthday, and I
sent a balloon bouqet with jellybeans to him at work. 
I trust it will make his workday a bit more
interesting.

--- Malvary J Cole <[EMAIL PROTECTED]> wrote:

> Was just having a look at e-bay, and found this
> item.  Was interested that the
> shipping to anywhere non-US is $25 because,
> according to them, PAYPAL policy
> is that anything sent outside the US must be
> insured.  This is the first time
> I've heard that - is that a fact?  

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