What is credit insurances purpose

No matter how much you try to communicate with this bank it's pointless. I submitted an illness claim with all the documents and forms required and subsequently sent an email to the collections department to inform of my claim with regards to my personal loan. The collection department then responded that I need to liaise with the credit insurance department. I have even called them to find out what happens to the repayment while there is a claim pending because a person submits a claim due to income issues. They have went ahead to deduct the full amount. There is no communication between their insurance department and collections. They are telling me there's a note on their system confirming a pending claim. How is this supposed to help me. I am only struggling with this bank. With FNB they communicated with me and have suspended the repayment pending the outcome of their claim. Because a claim means one has no income and cannot fulfill the repayments hence why one submits a claim. Capitec is really tiring. I am ill and they are just adding more stress to my already weak system.