Insurance policies are not the same as an iTunes TOS. The policy is an agreement with a company outlining very specific circumstances in which they pay you. I'm sure the company was garbage (they sure sound that way) but when I've had travel insurance it has always outlines the circumstances where I could make a claim.
In the case of an insurance policy the fine print is what you're buying.
Again, to be fair, the insurance company could have had a misleading policy and if that's the case they should be raked over the coals.
People should be able to expect that insurance is as advertised, and there's no "not really" in the fine print. UK courts are much less accepting of such things than the US. The infamous case is PPI misselling: https://en.wikipedia.org/wiki/Payment_protection_insurance