When reading PayPals T&C it appears that if the seller can prove they sent it they will win. However on the fair trading website it refers to the terms on listed on the sale. I was never offered insurance, however in his terms and conditions it states "They are not liable for any damage in transport, If you would like to insure contact us"
My package isn't damaged, its lost. I never entered a contract of sale with TNT he did. I have been polite with the seller but have informed them of the above. I have also asked him to put in writing to me what he intends to do to resolve issue if indeed the parcel isn't found. In return I have informed him I will depending on his response investigate all options available to me, including pay pal, credit card provider, Fair Trading and the Civil and Administrative Tribunal.
TBH $300 isn't such a big deal to me, its more the principle