Broken iPhone and the apple shop

My iPhone and I have had a lot of issues lately.
Cracked screens, glass falling out and now he only has one speaker.
So rumors are, if you have insurance on your iPhone when it's on a plan you can take into your local apple shop and they'll whip you over a new one!

Now I'm really confused about this, 1# how do you find out If you even did agree to put it in insurance? And 2# why would apple give you a new phone for a broken one? 3# Do you need to ring and make a booking to have someone evaluate it?

I do have a friend who works in apple, but of course hes to good to talk to us mainstream people.
So here I'm asking you intelligent people to help me!

Oh I live in Perth, WA, if that helps.

Depends on how it got damaged, if accidental they should replace it if you didn't disassemble it or jailbreak it yourself, if you did then that would void the warranty