Ive bought alot of secondhand stuff over the years. That bike looks in good condition. I.e someone bought it in good faith/looked after it regardless of the mudguard.
If I bought something stolen I’d want to liaise with the insurer NOT someone who had been paid out years ago. You relinquished ownership at payout IMO as your not out of pocket/owed anything and no longer legal owner. If you regain posession without returning all funds- partly fraud.
The only goodtime is when you catch the immediate crook or fencer. 4yrs?
One day insurers will put big exemptions/premiums hiked massively due to high end thefts from sheds/garages.
Too many times I see bike stolen threads (forced entry into shed/garage). If your insured and happy/understand the additional risk fine but move on. If you insure bike for less for better premiums- thats your call.
Flame. Its my opinion. I’d say the same in the pub or street.