This is my first AIBU, so please be gentle 
About three weeks ago I (or rather my DH, using my ebay account) bought a chair on ebay. It was a wooden-framed chair with a slightly padded seat, narrow wooden arms and a fretwork back (not sure that's the right term: wooden framed back with the majority of the middle bit cut out leaving a sort of quite fine, fancy-patterned 'insert' attached to the the frame at one point per side - sorry, my powers of description are rubbish!) The chair ultimately cost £46 and was listed as collection only. My DH hadn't noticed that last bit and the seller was a little bit further away than I would usually travel to pick up a chair. However, within a couple of hours of the auction ending and before I'd had a chance to pay or discuss collection, the seller messaged offering to courier it via 48-hour delivery for a further £31. To save time and petrol money, I agreed.
It took six days, rather than 48 hours, for the chair to be delivered so I was a wee bit annoyed I'd paid for 48-hour delivery but there we are. Unpacked the chair, which was wrapped in a thin layer of cardboard over an equally thin layer of polythene (no padding at all) to find the wooden 'fretwork' part of the back completely snapped off and broken into two separate pieces with a further narrow 'splinter' of wood which had split off from the bigger piece one of the break points. In addition the front edge of the padded seat lifted away from the frame beneath and the wood was slightly (freshly) split there too. Basically, it was damaged beyond repair.
I contacted the seller to inform him and to ask for a refund of the £77 and offered him the choice of having it sent back to him and reimbursing us for the further carriage charges or us disposing of it. I sent photos of the chair unwrapped from the cardboard but not even out of the polythene with the broken pieces clearly visible. He messaged back asking us to dispose of it as it was less hassle for him. He thought from the photos it had been trodden on by the courier. He said he had insured it and that the insurance might get in touch. I took loads more photos just in case before we got the council to take it away (for which we had to pay!)
Fast forward another week and a half or so to the beginning of this week, when I suddenly realised I hadn't had an email from PayPal re the refund. I checked my account - no refund. I messaged the seller, politely asking for the refund ASAP. He has just replied saying that the insurance claim hasn't been settled yet (not my problem?!) and that he can't pay until it has been as for all he knows I could have repaired the chair and sold it on at a profit! And then , to add insult to injury, he asked if the insurance company does get in touch with me, can I tell them the value of the chair was £65 rather than £46 as he needs to recover some of his costs! 
I am composing a reply along the lines that his delivery insurance isn't any of my concern, that my contract is with him and he sold me a chair that is unfit for purpose so I am entitled to a refund, that I'm not prepared to commit insurance fraud, that I offered him the chance of having the chair returned so don't appreciate being accused of dishonesty, that if he had packed/padded the chair better in the first place this might never have happened and that if I don't get my refund by 6.00pm tomorrow I will open an ebay dispute. Does that sound reasonable? Anything else I need to know? I am right in thinking he is massively trying it on, aren't I?
Moral of that (excessively long - sorry!) story is: don't let DH loose on ebay!