RyanAD

So last week my bike was stolen. It was recovered by the police and was found to have ignition damage from where it was hotwired. When I've taken it to a mechanic to have it fixed, he's found that they have used some sort of tool to remove the steering lock pin. Whilst doing this, they've taken a chip out of the frame which is tiny. The mechanic said that my insurance company might class this as a write off due to the frame damage. Could a tiny chip (about the size of half a 5p coin) really cause my bike to be a write off? Thankyou.