Account hand over for a cancelled cellphone insurance

I cancelled my cellphone insurance with Telkom. After I got confirmation of the cancelation my bank account was debited and I reversed the debit order. The following month they double debited my account again and I reversed it as well. I contacted them and informed them of their error and they promised to resolve it. Today I got an email stating that have been handed over for not paying my insurance premium. Isn't it that when an insurance premium is not paid the policy automatically lapses? Also how do I pay a premium for a terminated policy? Educate me please. Is this how telkom conducts its business?