Monitor Administrators are a **** together with Mr price mobile

I bought a phone from Mr price a few months ago, and decided to purchase the in-store insurance. Within a month or so I noticed that there was damage on the phone, contacted the insurer for the phone to be fixed and they took the phone. The insurer then notified me that the phone was not repairable and needed to be replaced, they requested an amount as a "replacement fee". I have been waiting for months without a phone and now they are telling me that they don't have stock and offered me a refund. They do not want to refund me for the so-called ''replacement fee" because nothing is being replaced. They are also refusing to refund me for the insurance amount because if i accept the refund (only the price of the phone) the insurance will cease to exist, which baffles because i did not necessarily use insurance as intended. Mind you the phone is still under warranty, so i don't understand why these guys want to ***** my money in daylight. If this thing is not resolved i will take them to the short term ombudsman, i don't think they have an idea who they are dealing with. How can you sell me a phone with a latent defect and want to charge me for it?