Insurance claim uneconomical to repair

I recently dropped my old iPhone 7 which damaged the battery and screen

The repair costs 2700 that along with an excess of 1000 the amounts to 3700 which is virtually half the rand value of the iPhone 7 currently it’s not economical for the phone to be repaired I told the store this and the did not want to indicate this on my behalf on the report for insurances purposes despite agreeing with what I was saying . My insurance will replace provided istore specified that it’s not economical to repair but rather to replace