It probably doesn't need a VIC because it hasn't been through any other change of owner /keeper /auction/ salvage sale as a result of the payout.
So it's identity is most likely to be genuine.

You can call the V5(c) what you want but V5 has never been a log book, it's a document of registered keeper.

The Log books that existed when I first had cars were a log of vehicle owners.

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