IPhone : navigator.geolocation.getCurrentPosition not timing out for iPhone5

I have the following code in a location service:

.factory('Location', function($q, $ionicLoading) {
        return {
            getCurrentPosition: function() {
                var deferred  = $q.defer();
                $ionicLoading.show({template: 'Getting Location...'});
                navigator.geolocation
                    .getCurrentPosition(
                    function (data) {
                        $ionicLoading.hide();
                        deferred.resolve(data);
                    },
                    function (error) {
                        var data = 'Error getting current position.';
                        $ionicLoading.hide();
                        deferred.reject(data);
                    },
                    {timeout:5000, enableHighAccuracy:false});
                return deferred.promise;
            }
        }
    }

I use PhoneGap Build to build the project and then install on my iPhone5.

All works fine till I turn off Location services:

I expect the timeout to occur after 5 seconds and the error to display. However, my app just hangs. Any ideas timeout is not triggered?