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Sangeetha Mobiles — insurance declined

I purchased vivo y66 phone with a 1 year phone damage insurance. Now my mobile damaged so i went to btm sangeetha store for repair as i have insurance for phone damage. They said they will not do that because of some internal rules. I said i will do fir for fraud they said ok you can do and gave me my mobile back.
If sangeetha can not repair or give money for repair cost than what is the meaning of giving an insurance.

Complaint Status

[Mar 20, 2018] Sangeetha Mobiles customer support has been notified about the posted complaint.
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    Sangeetha Mobiles Phone
    +91 84 3111 2345
    +91 80 4939 7000
    +91 80 4939 7111
    Sangeetha Mobiles Address
    #1183, 22nd A Cross, 30th Main, Banashankari 2nd Stage, Bangalore, Karnataka, India - 560070