health insurance — Not renewing my policy

I insure myself with ICICI LOMBARD two years back with cashless health card for 3 lacs. My policy is going to expire on 30th of August 2009. I did contact online live chat to Mr. Manoj
The detals of conversation are as follows

Please wait for a site operator to respond.
You are now chatting with 'manoj'
Sunil Yadav: Hello
manoj: Good Morning !! You have reached icicilombard.com. How can I help you buy a policy?
Sunil Yadav: Hi Manoj
manoj: Hello
Sunil Yadav: I want to renew my health insurance policy
manoj: Please help me with your policy number.
Sunil Yadav: 4034/FPP/02595242/00/000
Sunil Yadav: CARD NO. BLC-IL[protected]A
Sunil Yadav: Last Date 30Aug.
manoj: May i know Any Insured date of birth ?
Sunil Yadav: I have not received renew notice yet
Sunil Yadav: 30/01/1958
manoj: ok
manoj: I am getting message as Policy Rejected By U/W
manoj: "For service queries, please call us on our Toll Free number[protected]". Its accessible from India only.
manoj: http://www.icicilombard.com/app/ilom-en/selfhelp.aspx
manoj: Please click the link below to get in touch with our Customer Service department.
Sunil Yadav: What is the reason
manoj: Please call the above customer care number
Sunil Yadav: I approached ICICI Bank person Miss Parampara for the same reason. She did not say that to me.
Sunil Yadav: At Viman Nagar Pune branch
manoj: I apologize for the inconvenience caused to you
manoj: Please call the above customer care number
Sunil Yadav: Will you be able to let me know the reason to reject my policy?
manoj: I am not from the concern department.

I was surprised to know that my policy renewal is rejected because I did submit claim form.

Do I should go for policy renewal with ICICI bank?