bose it was you that mentioned insurance,
ensure that the person is safe to command for club 'insurance' purposes not to give any instruction.
Obviously if insurance has nothing to do with it then:
But if under insurance requirements he needs to be in currency then he can't be PIC, you have to be. Otherwise he would be flying without insurance which is illegal.
is irrelevant to this discussion.
I agree if the instructor is logging nothing then it's fine for the pilot to log PIC.