Please go through the Insurance Laws. It is pretty tough on these rogues. There is a regulation called IRDA Insurance Policy Holders Interest Protection Regulation 2002. According to which they can not refuse claim on flimsy grounds. Please forward your papers and then if they come out with some unreasonable reply such as the one in your case, get in touch with a consumer lawyer. Discuss your issues with my advocate if you like. His name is Sanjay D. Ph: 09448300242.