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Buyer filed PayPAl claim instead of insurance

Came home from work last night to find 2 emails one and a half hours apart one from eBay at 7:45 PM and one from Paypal at 9:03 PM. Buyer in Canada purchased a gold necklace (Actually paid less than scrap value!)She filed a dispute with PayPal that the necklace is not as described? 9K Herringbone necklace Supposedly the necklace which is a herringbone style received three kinks in it during shipping.
Buyer has now emailed me that she has gone through the USPS insurance deal before and this is why she filed with PayPal.
This was insured with Auctiva for that reason as USPS insurance is a PITA.
Any suggestions how to get this buyer to follow the insurance process through UPic or what I should do here?
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