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Loan Insurance problems

I have an existing loan in which took out insurance with it. When i was made redundant i immediatley informed the loan insurance to cover the payments.

The insurance requested regular forms from the job centre as proof i was in receipt of JSA. The JC lost my application which resulted in delays and because the loan company did receive the forms on time they didn't make the payments.

Since Setember 2010 till February my insurance has only made 2 or three payments and that resulted in me being in arrears with the loan to which the debt has now being passed on to the recovery team and there're closing my account.

I have also taken up with the Omdusman who have told me that i don't have a case against them and just feel like im being fobbed off.

So my question is, after paying over three years towards the insurance how can they just decide not to help me in making payments all because JSA were late providing the paperwork they requested.

Where can i go from here as i don't know where to turn.

Many thanks in advance

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