Car loan after death of borrower

My mother had taken car loan of around 11Lacs from a Pvt Bank. in March 2017. Unfortunately my mother passed away in Jan 2018. The total outstanding amount is around 9.5 lac rupees. In the said loan there is no Co-Borrower or Guarantor or no witness. Immediately after the death of my mother we had informed the bank and also submitted Insurance claim which was give with the loan. The Insurance was rejected and the bank has been sending loan recall notice on my mothers Name. We have stopped paying the EMIs since April. We offered the bank one time settlement amt of Rs 4 lacs which they didn't accept. What should we do as all we have is 4 lacs to pay. Can the bank file a case against the family if they are not able to repose the car ?