It is a complete mystery to Moneywise how O2 can charge a customer for insurance against accidental loss, and then refuse to pay out when the phone is lost accidentally.
Jonathan seems to have a clear-cut case but O2 says its smallprint states that accidental loss doesn't include losing a phone in a "known public area". It's a clause we find ridiculous and we went to the O2 press office to find out more.
Sarah Taylor, spokesperson for O2, says: "The customer used his handset and left it on the seat of a cab, which would be excluded for leaving the handset unattended, as stated in the terms and conditions."
She also says the terms and conditions of the policy state that you need a crime or loss report from the local police to make a claim - a vital point that was missed by the adviser Jonathan talked to.
Because he was given this wrong information O2 has agreed to send out a new phone and waive the £75 excess fee, although Taylor is keen to stress that this is an exceptional case.
"In these unusual circumstances we are sending him a replacement phone. We apologise to Mr Mathias for giving him the wrong information when he first called," she adds.