my iphone5 was ****** and I reported it a directed

My iphone5 was robb and I reported it as required by the dealer to my suprise they told me even thou my handset was insured the iphone5 range has been discontinued and I have to pay 4000acsess to get iphone6 because I'm not fully covered for another iphone5 I must take a cheaper brand. That handset is on contract and I'm still paying their rate meanwhile I don't have the fone, the only 5S they have is. On cellc and mtn but not vodacom so I must pay 6000+ to settle the. Amount if I want to take different network. Its been a month no response from them but they still deduct the monthly amount.