Excuses Not to Payout by Outsource are Disgusting

My Dad submitted a car accident claim and the car was taken to a panel beater. The assessor declared the car uneconomical to repair and my Dad was given an option to withdraw the claim and fix the car on his own or write off the car. I called Outsurance and asked them why my Dad was not given all the other legally available options especially the disclaimer option and I was given the most ridiculous excuses. I was told that the car belongs to the bank and not my Dad and that's why they cant give him a disclaimer. I was told that Outsurance has an agreement with the Bank and therefore they cant give my Dad a disclaimer. What nonsense is this?