The seller is required to make a refund whether or not they have insurance.
So keeping the buyer waiting until they process an insurance claim is not acceptable.
Certainly assist the seller with their insurance claim but you shouldn't have to wait for the outcome before getting your refund.
The easiest way to send pictures is to email them the sellers email address will be in your paypal history.
If the seller does not issue a refund open a " Not as Described Dispute"
http://pages.ebay.ca/help/buy/item-not-received.html
In the Resolution Centre
http://resolutioncenter.ebay.ca/