Confusing service

<p>I am happy with the service I received from Dial Direct, it was my first claim and I must say it was hassle free and efficient but I do have a question, when the phone was initially insure it was insured for a lesser amount but every year the premium goes up as well as the insured amount. the premium is therefore linked to the insured amount but then when it comes to claim time we only look at the actual value of the item and not the insured amount why is that?? for example you Insure an item for R1000 and over the years the insurance increases the premium and insured amount then after sometime the insured amount becomes R3000, then the item gets ****** and when you get paid out you get paid out R500 because the item has obviously lost value etc, so my question is why does the insured amount and the premium increase but when claim time comes thats not what you get paid you get paid far less than your insured amount?? Why insure me for more whereas you know you are going to pay me less??? My contract says I’m covered for a certain amount, I believe that should be irrespective of the item value, because in the first place, the premium increases were automatic as well as the cover amount why should I be paid less than the cover amount??</p> <p> </p>