Good policy or just a scam?

This week I purchased a pro-sumer Digital SLR camera from a well known high street chain. I was encouraged to take out their accidental damage policy claiming that I was actually buying my next camera. If it was broken, they would replace it “whatever happens”, if it couldn’t be repaired within 21 days, with an equivalent model, even if it was more expensive. It works out at around £30 a year for 5 years. So if in 4 and a half years a new model comes out and I accidentally run over my camera with my car, I should* get it replaced by the newer model. Of course it doesn’t cover loss or theft. I was thinking of getting some sort of after care as DSLRs are known to be delicate and very expensive to repair and it should give me peace of mind when using it “in the field”. I have 14 days to cancel the policy, what should I do??

* Whether I do or not I don’t know, sounds a bit too good to be true IMHO.