Blaming the Client

Approx 1 moth ago my boyfriend's cellphone started making strange noises and wouldnt function properly. We took it in to be repaired as we have insurance on it. The assistant filled in the papers - we handed the documents to him etc etc - after 2 weeks went by i called in to find out the progress on the phone and a lady informed me that the phone is irrepairable but we have to pay R330 to repair it (LOL!!!!) i informed her that its insured and she said the gentlemen that assisted wasnt in but would be in in 2 days time and she would get him to call me..... he didnt.... a week went by i called back and was told he still wasnt in.... yesterday i called again and finally got to speak to him. He insisted that we did not tell him that the phone was put through as a normal repair and not insurance and the only way we will get the phone back is by paying the R330. How does that work? The employee can do as he pleases and we have to take the blame. Logically why would we put a phone through as a normal repair if we have insurance... we dont pay the insurance for fun. CNA N1 City's service is awful in general..... think even less of it now after this incident. This is like theft