That's absolutely disgusting and sets a precedent for any pedestrian to jump out in front of a cyclist to claim compensation. That will be a lot easier than staging a car accident, like the fraudsters have been doing.
In the U.K there have been government initiatives to encourage people to cycle more, for reasons of health and for enviroment.
But stories like this just give people precedent to not try. Im an Avid cyclist and ive rode bicycles my entire life having never hit a single person. Insurance for using my Bike would be a massive waste of money.
If this person walked out into the road without looking because she is another example of a social media Zombie, it should be her fault.