Seems to be a common new style of insurance scam. Noticed it when buying my lithium battery.
I assume scam goes as such... guy opens ebay accounts, buys and gets a few ratings. Then puts an ad up with unlimited amounts of rediculously cheap item (e.g. minibike worth a thousand for $60. An amount of people buy, hoping its a mistake price that will be honoured or they get their money back via paypal. So maybee a few hundred people pay in a short time. Nothing obviously arrives over the next month for the first payers while all that time the guy is taking more payments.
The first buyers launch dispute with paypal. That dispute takes more time to sort out, so guy still collecting money.. finally the money gets refunded to customer, ad and seller gets shut down, and paypal has to write off on insurance because guy is not traceable. Guy gets away with tens of thousands minimum from one ad. Insurance pays. = everyone pays.
Dont be tempted to try buying such items as i fear you may be just funding a criminal/terrorist and we all pay in the end through higher prices