eBay has announced new buyer protection programs on the UK and Australian sites. On the eBay.co.uk and eBay.ie websites, PayPal will provide £150/€200 of coverage with no processing fee, no minimum purchase price and no seller requirements for all UK / IE buyers who pay with PayPal, beginning in June. This coverage protects buyers for purchases made of certain items which are either not received or for those that are significantly not as described. Additionally, buyers who use PayPal to purchase items from eligible sellers may be entitled to up to £500/€1000 protection. Buyers can look in the Meet the Seller, Buy Safely section on item listings to see how each specific listing is covered.

The protection offered by PayPal is an expansion of PayPal Buyer Protection and replaces the eBay Standard Purchase Protection Programme which previously covered most eBay listings for up to £120/€200 minus a £15/€25 processing fee.
http://www2.ebay.com/aw/uk/200705081459002.html

On eBay Australia, when sellers offer PayPal as a payment method for eligible items, these items will be covered for at least $400 with no processing fee, where the items are paid for with PayPal. In addition, the new PayPal Buyer Protection will cover certain items for up to $3,000.
http://www2.ebay.com/aw/au/200705090852542.html

Earlier this year, eBay doubled PayPal Buyer Protection on its US site, offering up to $2,000 of coverage for qualified transactions on eBay.com, but eliminating buyer-protection for non-PayPal transactions.
http://www.auctionbytes.com/cab/abn/y07/m01/i10/s01

Review all policies carefully for details and restrictions.