I just received (another) promotional email from Velocity about this offer, so I thought I'd have a bit of a look into it.
You have to keep the policy for at least 90 days to get the points. Premiums are paid monthly but the first month is free. So basically, you would expect to have to pay 3 premiums before the points post (or possibly 2 if you're lucky).
I just got a quote for a 1-year-old cat and the premium is around $19/month for the cheapest policy. So, the worst case scenario is that you'd be paying ~$57 for 10,000 Velocity points.
If you can be bothered, and you think Velocity points will be worth something in a few months, it's actually not a terrible offer. I personally won't take it up though.