PAY PAL CON with the Winner Take's ALL!

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I recently sold serveral items on eBay.

I offered a very good start price of 99p and post was very good with the option of postal  insurance.

When all of my items were sold, one of the items was reported to have not arrived.

I offered a 50% refund considering the person did not select postal  insurance cover. WHY??

The winner decided to go via PayPal. PayPal advised me that they will fully refund him.

Considering the winner did not take the postal insurance option,  i felt i was being let down by PayPal.

PayPal said i MUST have proof of post.

I did, I showed PayPal the post office receipt with the winners post code printed on it.

PayPal said  it was not enough  proof and the refund will go ahead.

GREAT! what is the piont of offering cheaper post with or without post insurance cover.

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