Give the Insurance Ombudsman a ring, its a 1300 number *thinks* 1300 XXX 808, can't remember the middle one i'll try find it for you, but basically they look after all insurance companies, give you free advise and can investigate the problem for you. I'd look at doing this. All insurance companies fall under this guy, they are extreamly helpfull
EDIT, 1300 780 808
Good luck megs