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CellC refusing to blacklist stolen phone

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Okay here is the full story,
Beginning Last year my brother took out a contract at CellC with the Samsung S4, he had the phone a few weeks and managed to lose it, literally the next day he went and bought a new one and took out insurance on the new one.

Last week they stole the other S4, so he called the insurance, the insurance said they need a case number, so he goes to the police station and they tell him he needs to blacklist the phone with the SP first, so he calls CellC and they refuse to blacklist it because he never informed them he put the Sim in a new phone and never blacklisted the previous one.
I don't know but this does not seem fair or right to me?
Has anyone ever had a similar experience or does anyone have some advice?

He still has all the papers and boxes for the phones.

CellC Rep, can you perhaps advice or help?

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