Why have insurance to cover shortfall

Lockdown happened, we were invited to app**** for debt relief for personal loan and credit card. The insurance we had on the accounts would have covered 3 - 6 months. They covered 3 months, very grateful! Since July account had been paid by us. We tried applying for a consolidation loan with African Bank, upon where we got declined due to the 3 month debt relief. Help me understand, if the insurance covered the 3 months, why does the accounts show in arrears and am I listed as a bad payer on ITC. I will forward all correspondence to the Financial Ombudsman.