Canadastamp,
Who can file to claim that (up to) $100 insurance coverage? I would imagine it is the sender, not the addressee. Correct me if I am wrong.
I don't know what differences there are in legal concepts between Canada and the US, and I am not really addressing this from a legal standpoint so much as a moral one, but if I were to take someone's money, I would feel an obligation to refund it if they didn't receive what I "sold" them. Until they receive it, the transaction is not complete. While the "fault" might lie with the postal service, the postal service does not have unlimited liability, which is why insurance exists. Unless a seller explicitly says "you want insurance, you have to pay for it" the seller should own the responsibility of insuring themselves in case they have to make a refund. I do think that even here in the US there is some small amount of automatic coverage. But it is still the seller, not the buyer, who has to file the claim for remuneration. If the seller doesn't, and refuses to refund to the buyer, how just is that? Again, insurance exists for a reason. But it protects the sender, not the receiver. It is then up to the sender to do the right thing -- issue a refund, and file a claim for a loss.
But that is all hypothetical in this case, as it is likely that if not received,
ebay will refund the buyer, dock the seller, and the seller will have to make a claim with the postal service (which is as it should be).
Basil