Lack of transparency with insurance products

My wife and brother-in-law and recently took out a 2 for 1 contract (2 phones, one contract) from MTN. They were told that the phones were insured because they were going to pay an extra fee. A few months into the contract, my brother-in-law lost his phone on his way to work. When he went to MTN he was told that the phones were only insured for damages and not for lost or ****** phones. On top of that, he now has to pay MTN R150 just to get a new sim card. I understand that you need to read the fine print, but he did not even get any paperwork from MTN describing the different types of insurance and which insurance he was taking. Nothing about insurance was explained, so the assumption was that the insurance was comprehensive. Therefore, there is a lack of transparency when it comes to contracts and insurance, or atleast at the branch where he took out the contract