Bajaj Finance — payment of full insurance amount while foreclosing home loan.

Address: D 93 Shashtrinagar, Nana Mava Main Road,, Rajkot, Gujarat, 360005

I have obtained home loan from Bajaj finance. They have sanction Rs.12 lakhs for home loan with a period of 15 years. They have told me that there is a small amount of 900/- is to be paid extra each month for insurance of home loan. After 6 month, I want to fore close my home loan. I approached office of Bajaj Finance. They have stated that I have to pay amount of Rs.11, 87, 000/- as out standing of Rs.12 lack loan. And Rs.97000/- extra as full premium of insurance, which they have taken on 12 lack loan.
I have stated that I haven't received any such insurance policy. They have stated that after some time, I have to surrender this policy and they will refund me approx. 60% surrender value.
But it is cheating. Why should I pay full premium of insurance amount.