The reason why only addressee can file a claim is that they have the item, and AP will not accept responsibility without being able to examine the item.  But I believe they can make the sender the beneficiary of the claim.

Which is something PP should take in consideration and they should not accept claim if the buyer did not first try to get compensation from AP.

He was not even willing to try and make the claim. Said it is not his problem. Sigh. ...

Anyhoo I have just emailed to ask him to send everything (including original box) back to me and I will refund his money.

How was he planning to send it back, obviously not via a Post Office if he wasn't even willing to take it to a Post Office to be inspected.... Hope it all works out for you in the end

Good point chezzy!

Last year l bought a room box (single room doll house) from Qld. It was packed in bubble wrap then inside a sturdy box.

The room box, being wood, had a break in it down one side. Like something heavy had been dropped on it yet the outer box was not really damaged at all.

It was sent to me with reg'd post. The sender told me to take it into the post office and claim on the insurance up to $100 as they could not do it from their end.

l took the parcel and contents into my post office, they viewed it and we filled out the damaged mail section of the green claim form.

Several weeks later, l received a money order from Aust Post for $110 being the price of the room box and postage costs.

l know you said your buyer refuses to take it into the post office but l thought l'd just explain the process l went through with a damaged item. Surprised me that they paid over the $100 limit but they did.

Thanks for that.  I hope my outcome is the same!

Your buyer is cutting off his nose to spite his face.

He will have to take it to the PO anyway, and his way he will have to pay return, Paypal-compliant postage.

So he'll end up out of pocket, as there is no requirement on you to pay for the return, whereas he could simply take it to the PO and have the damage assessed.

Maybe he will attempt to send it back COD. OP, does he know he has to send it back a certain way? (I am guessing registered/tracked)

I know its crazy. but whatever.

Yes, I told him i need it to come back signature on delivery.

All you can do is hope he is too pig headed to take any notice of what you have told him about returning it by tracked postage.

If it arrives on your doorstep with no tracking he cannot win a paypal dispute as he has to provide the tracking details to paypal.