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I signed a new line with CPW and they recommend that I take up their insurance policy. Normally I do not do that as I never believe I will lose my phone. They managed to convince me and true in enough, something you never expect will happen happened. I actually lost my phone within two weeks of getting it (I know this sound rather silly).
I reported the lost and was told normally it will take up to 72 hours to receive a decision from CPW insurance co. Being impatient, I called after 24 hours and was told there was a list of questions I need to answer before they are able to assess my claim. Which I did immediately and fax it across. I called to confirm my reply was received. The next day I called again for a decision and they told me they did not receive my reply. Not very please (obviously) but I still fax my reply in again and called to confirm (no much of a choice anyway - you need them to supply you a new phone). I was also told that because the date between when I sign up for the policy and when I lost my phone was too close, it raises the suspision of the assessment team and that is why the further questions.
Eventually I got a new phone (note, just a phone with no other accessories at all - even though I lost the earphones together), but the process was not as easy as Lifeline has claimed. It took about a week, instead of the 72 hours they claim and the excess is £29.50 (not cheap). I am glad I got my lost phone replaced.