I paid for my flight with points and did not fly I have to tell insurance about the cost of the flight to claim money Please advise me how to prove c

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You need to check your policy whether they cover and how. It's not something you can just convert on your own and it will be automatically accepted.
 
When we had to cancel a trip at short notice in 2012, AAMI refunded me for 10,000 Qantas points (5,000pts X2) cancellation charges. They used the rate Qantas has published for buying top up points, about $300 IIRC
 
Please advise how do I convert my paid points flight to cash so i can justify to insurance claim

You'll need to have a look at your insurance policy. Most policies now days have a clause that explains how the insurance company will calculate the value of your points. Some will take the cost of a revenue airfare (so if the normal paid fare is $1500, tha't what you'll get back), others may treat the cost differently (for example at the 'buy' rate for QF top up points).
 
But wait a sec - if you cancelled an award flight (even at the last minute) all airline programs (that I am familiar with) will refund the points + taxes less a cancellation fee (which may be $$ or some points). So a bit more information is required to get some advice.
 
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As Luxury-Lizard stated , if you cancelled the flight all points and taxes would have been refunded, less a small cancellation fee of 5000 or so points.

A good friend ended up in hospital last year the night before she was supposed to fly to London. She texted me from the hospital and asked me to cancel her flights which I did for her online, and refund of $ was in her account within a week.

If you didn't cancel and were a no show, I'd assume you would have to prove that you were unable to cancel i.e. because you were in a car accident on way to airport which rendered you unconscious and you didn't come to until after the flight had departed. Without proof of a physical inability to cancel Id assume the insurer will deny any claim as if you had cancelled the loss would be significantly less, than for a no show,
 
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