Hi Surya, I have experienced a similar issue with ICICI Lombard's bike insurance service. You can consider reporting it to their grievance redressal forum. It is extremely difficult to deal with their managers and especially when we are in need of money, these insurance companies simply try to dominate us and avoid paying. Please consider changing your insurance provider at the earliest.
But don't worry, in my advice, you can send them a legal notice and threaten to raise the issue in court. My cousin had sent a legal notice to the branch head of Malkapur and he was immediately called in the office and his dues were settled.
Please don't worry and keep following the legal procedure. Firstly try to settle the matter off the court and if does not then go for a legal route.