INSURANCE CLAIM FOR LOST HANDSET

I have been paying a handset insurance with my service provider for my number ***. Then I last used it on 28/05/2015 just before 12pm.Then I put my sim card on my other phone the nokia E6, on the 12/06/2015 I charged the phone and wanted to put the sim on its original phone, I went to shoprite and spar with the phone in my pocket. I looked for it and cldnt find it.Then I called my service provider to blacklist the handset and I immediately reported the matter with the police. On the 13thJune 2015 I called the insurance dept and spoke with Thomas who put me on hold for 20min as he said he was busy checking my claim,I had to cut the call because I was on hold for too long. At around 11:08 I called *** again and spoke with Mark Cornelison who advised me that my claim has been declined, I asked him why he advised me that its because the phone was lost without a sim card in. I advised him that according to my knowledge claim can only be declined if it gets lost with the sim card nt insured with. And in my case no sim was in the phone. I want my claim to be approved as this is not fair, and if me as a Vodacom stuff member I am treated in this manner what about