Removed iphone from icloud but didn't erase data, a problem?

Phone is dead, claimed on insurance, but only removed from icloud and not erased data, is this a problem? Phone is completely dead

Added (1). No it, s from bank insurance, natwest

No because if you turned it into an apple store then they will scrap it for you, no worries.

If it was signed out of icloud then no worries. It will be have to be sent to Apple and I know that they wipe the phone using there own systems before doing anything else. Apple is quite paranoid about people's personal info.