Tata AIG Domestic Travel Insurance / Spice Jet — Tata AIG-spice jet Joint racket ?

I bought 3 spice jet tickets on the net Bangalore delhi bangalore.
At the time of purchase I was offered what I thought was a very useful domestic travel insurance covering much dreaded oft occurring events of travel on these budget airlines like ,Trip Interruption,Trip Cancellation,Baggage Loss-Checked,Flight Delay,Common Carrier Delay,etc(http://www.spicejet.com/tata_aig_productdescription.asp) in collaboration (collusion?) with TATA AIG .

Spice did not transport us as scheduled on Bangalore to Delhi for their own operational reasons.
The best they gave us was "Credit" refund for that and a credit shell for the return journey, though they had received the entire amount as cash. I tried recovering the amounts confident ( totally misplaced as it turns out to be) that the Great name and reputation TATA AIG
would refund the amounts under Trip Interruption,Trip Cancellation. Since September through umpteen emails to all levels at both spice and Tata.
Now come the worms out of the internet woods- as exclusions in the 27 page 190 kb policy wordings which no one checks when the product description is so attractive-.
The email link to domestic travel insurance at Tata has demised, You guessed right, they have not paid. Worse odds than Las vegas roulette tables.
No one would have bought this touched the policy with a barge pole but for the TATA name in the policy.

BEWARE even the great TATA reputation is no guarantee of fair play or justice.

We Indians are deeply Sorry that even youTATAs had to eventually succumb to these little rackets to make little money-?Rs.385/-to be exact and sacrifice your reputation?