If Co-borrower Of Loan Dies And The NBFC Cheated On Us

The co-borrower dies and the applicant is alive, but the NBFC cheated on us by saying that your loan is insured and took 2 lakhs approx. for insurance. After the death of co-borrower, when we informed the same to NBFC they replied that the loan cannot be called off as the applicant was only insured by them. Also, they were deducting the EMI from the co-borrower account as they knew it well that the co-borrower is the main bread earner.