HDFC Bank — Forced to take term insurance against home loan

Address: Bangalore

I have taken a home loan from HDFC bank. I am also HDFC account holder for the past 20 years.
HDFC loan relationship person is forcing me take a term insurance from HDFC against my loan and threatened that he would not disburse my loan instalment until I took Insurance.
Firstly, the premium he quoted is very high. when I said I will take from other insurer, he said that is not possible and I should take only from HDFC.
I challenged him saying taking insurance is not mandatory, but he is saying he will not disburse loan installment unless I take insurance from HDFC only.
The builder has raised demand for instalment and now I am stuck because the bank person is literally blackmailing me.