Free Insurance T&Cs

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I bought a new 18 month mobile contract which came with a free 3 months worth of phone insurance, then it would be charged at £5.99 per month after the free period. The phone arrived on 20/10/2011 so I expect the free insurance period to last until 20/01/2011.

Unfortunately my phone was stolen over the weekend so I gathered the necessary details, blocked my phone and got a crime number to make my claim. To my suprise they said my claim would be invalid as I cancelled my direct debit on the 7/11/2011 and during the 'free' period cancelling the direct debit invalidates the insurance policy with immediate effect....

This "Immediate cancellation" clause is not mentioned in the policy document that I was supplied with. In fact the policy document says that if the direct debit is cancelled then the insurance will be honored until the end of the month. So I should still be able to claim? They say no because there are a different set of terms for the free period verus the months where I actually have to pay for cover. These extra terms I have never seen nor been provided with since I tried making a claim.

Annoyingly I don't recall ever cancelling the direct debit as I actually wanted the insurance. The only reason why I can think of it being cancelled is because I switched banks around that time and the direct debit was cancelled rather than transferred..

They have since backed down slightly since my first claim attempt by saying that if I can prove it was the bank that cancelled the direct debit then they "may consider" my claim.. surely they should be honoring the claim regardless as stated in the policy document? Or do I actually have less rights since I'm in the free period?

Hope that makes sense.