mtn insurance

I was advised by mtn when I upgraded my contract and got a new phone to continue paying the insurance on the old phone. The old phone has been ****** and now mtn won't pay out although I have been paying the insurance for 5 years! Now they tell me I must take it up with the insurers although I never took out the insurance personally with them. Is this how mtn make their money and then won't reimburse? Am now considering cancelling my contract with them so they've lost a customer of 15 years!