It's quite possible that the chip is fine but just doesn't work well with the select.
NMRA standards are designed to ensure that any decoder will work with any DCC controller. Since the Select is not NMRA compliant it's a well documented fact that it doesn't play well with certain makes of decoder.
I used a Select myself so I know about this!
Bachmann, TCS and Gaugemaster decoders have all been known to cause issues so it's worthwhile finding out which decoder you have in the loco.
Hornby decoders all work fine, understandably enough. So if all you want to do is run the occasional loco then the select will do the job if you stick to the Hornby chips.
It might also be worthwhile making sure your Select has the latest firmware version installed. You can check this by looking at the display when you turn the controller on. It will display a series of 3 numbers, if you see 15-30-03 in that order then you have the latest version. Version 1.5 is the latest firmware, the 15 representing this. If you get a different number then you can send the unit to Hornby for a free upgrade. The newer firmware allows the controller to access more functions (originally you could only access 9, now you can access 29) as well as fixing some (but not all) compatibility issues.
If you don't have the latest firmware you can send the unit to Hornby for a free upgrade.