It is disappointing because if the scooter rider causes a crash, it is highly likely they will be fined for something (most crashes which occur today someone gets fined for failing to give way, undue care and attention, dangerous driving/riding etc etc). As soon as the fine is issued, the insurance becomes void.
If a person other than the rider causes the accident, irrespective of whether they are fined or not, the scooter company again wouldn’t accept a claim because it wasn’t the rider at fault.
I can see why the statement it is junk insurance was made. The insurance is to tick an administrative checkbox to say they have it, but it isn’t worth the paper it is written on.
