VIC Car Extended Warranty - Claim Diagnosis required before claim considered

[brownbag]

I have an extended warranty on my car and the auto stop/start function has stopped working. The insurance company has said that in order to even assess my claim, I need to pay for a diagnosis first. Yet the thing about electrical issues in cards is that it costs between $150 and $400 to diagnose an issue, and the diagnosis in most cases is 70-80% of the work of repair (once they find the broken wire it'e easy to fix). Can the insurance company require me to pay for an expensive diagnosis - electrical issues are covered - shouldn't they cover the diagnosis?