Blind sided by MTN insurance

I sent in my claim for my Apple iPhone 5s 64 Gb that had an issue with the touch screen on the 09-07-2015. They never got back to me for a month until i was called by smartphone repairs plus (06-08-2015) to arrange the collection of my device and loan phone. fast forward another month MTN insurance sends me an email (04-09-2015) saying the amount of damage inflicted on the phone amounted to R3364.73, a figure that seems to have been plucked out of thin air. Once i paid the excess for the claim i receive phone call couple days later to arrange for a collection of a REFURBISHED unit. This made no sense. when speaking to someone from MTN insurance (16-09-2015) she told me that my only option was to accept the refurbished unit. due to the phone not being ****** or the cost to repair the device not amounting to 70% of the market value, my only option was to accept a previously broken iphone. As a customer i know that that this type of service is unacceptable and to add a cherry to this experience, the refurbished unit has a 3 month warranty on the repair the repair center did on the iphone and after that i have no leg to stand on.