
I heard in a movie that employees are instructed to decline whenever they receive any claim request. Most of the people will not reapply and that is how they can save a lot in payment. This is mostly true for smaller claims. For bigger claims they try to check for all possible hacks to deny the claim.
I have filed multiple health claims for my parents and once for my car and the above statement seems true. Best thing is to keep pursuing they will have to settle the claim.
For car policy, IRDAI is the best way forward. I believe they give 30 days and insurance company to settle the claim after that you can escalate with IRDAI again.
I had a similar experience with my car insurance claim with future generali. They kept denying my claim even after reporting to IRDAI. At last I told them I'll start publishing my claim story on social media, blogs and forums and that somehow did the trick for me and they approved my claim fully.

I knew from day 1 something was fishy. Always go with reputed companies.

Better to buy life insurance for your car from LIC than general insurance