N95-1 Sim registration failed error

My 2 year old unbranded N95-1 hadn't created any problem till now. It has started giving error " sim registration failed" every now and then. Its the same sim and operator I have been using for 2 years. Restarting often resolves the issue, but how often can u do that? Its out of warranty, and when I took it to NCC, they said its sim card reader IC needed to be replaced and charged 550 Rs. It worked for 1 odd month and again it has started giving me tht error. I just wanted to ask some Techie that what exactly causes this error? Sim card and phone gold contacts are CLEAN. I used the sim card in other phone for 15 days and its just fine. Just wanna know if it is repairable or should I throw the phone away?

This may sound like a stupid idea, but have you tried updating or reinstalling your phone´s firmware?
You can update your phone using the NSU:
Nokia Software Updater
All you need for this is a internet connection and a data cable for your phone!
If the sim card reader was already replaced it surely can´t be the hardware side of it, so why not try the software side?
By clicking the "Kudos!" or the "Solution?" button on the right you can say "Thank You" and you´ll show the author and others that the post is useful.
The day we stop improving is the day we stop being good.

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