This brings back memories... a little story for your ammusement...
I was working in Totenham Hale (lee valley techno) a few years back and decided to pop to get some grub at the shell station up the road, when walking back I went round and through the park opposite the technopark. As I was walking through a group of three guys tried robbing me at knife point. When I turned round and squared up to one guy as he was trying to put his hands in my pockets another stabbed me in the leg from behind, luckily the guy I was with upped and done legs back to the office to call for the calvery. Anyway after some scuffling and me point blank refusing to give them what they wanted they eventually ran off leaving with nothing. 10 mins later the police turned up as did the ambulance etc. They took my Jeans and the rest of my clothing for what I assume was testing and gave them back smelling and still blood stained later on. (not that I expected them to give them a quick wash or dry clean).
Anyway this has some kind of relevance to the story as what your friend made up actually happened to me. The police, well, they won't do squat even when in my case there was plenty of cctv, they will however give you an incident number number and send you on your way. In my case I was lucky, I went to the hospital, had my leg stitched up and headed back to work. Shortly after the incident (a few months possibly) I was approaced again by a group at which point I decided to change jobs.
So would I make up an elaborate story so I could commit Insurance fraud on an Iphone? probably not but to be honest the police told me that it was pretty much an every day occurance (at least in totenham) so I guess your mate will be handed an incident number and that will be the end of it.