Actually he is lying. He is not self insured. He is selling insurance to other people. There is a difference.

One self insures by using their own money.

Certainly I appreciate that the seller is upfront enough to explain that he is not buying postal insurance from the PO, but I find this problematic. And the least he could do if he is going to charge for his insurance is beat the ridiculous rates that the PO charges.

What happens when the item doesn't arrive or arrives damaged but the seller refuses to make good on his insurance (and he has the incentive to do so because he is the one who benefits from notr paying) --