Bad service from the insurance company and capitec

I have been banking with capitec for years now and had take several loans which were paid without any defaults, recently I was retrench and had a loan with them which had only 5 months to be paid, send all the necessary forms to them as I knew my loan was cover in insurance was surprised to hear I was declined, how will I be able to pay for that if am not working. I never knew that I will be retrench I would never taken a loan