taken to high court

My dad took a loan with iemas and last year he lost his job and is unable to pay the money, now they have taken him to high court.but according to my understanding when you take a loan they alsi include an insurance incase you loose your job or you get disabled then the insurance pays out.so now im failing to understand why their insurance didnt pay out after he lost his job.why include an insurance money whereas at the end of the day its notIin use.i want them to come up with clarity and way forward not this high court nonsenseBack