Maxlife insurance company - Unauthorised fraudulent withdrawal of premiums from my bank account

I have paid the premiums for the years **** and **** for two policies that I have with Maxlife Insurance Company. The premiums are paid yearly on ** Dec of each year by ECS.
Due to insufficient funds in my account on ** Dec ****, the premiums for the third year for both policies could not be paid. This was because I was facing some issues in initiating a wire transfer for funds from my Canadian bank account to my Indian bank account with Axis Bank Ltd.
On the *nd April ****, I deposited a cheque from my foreign bank account into my Indian bank account. The money was credited to my account on the **th of April **** with a stipulation that a lien would be put on the funds until the **th of May ****, as per international banking rules concerning foreign cheques.
However, before Axis Bank could put a lien on my account, MaxLife Insurance Company Limited, on **th April ****, withdrew the premiums for both the policies.
I reached out to the insurer and requested them to refund the premium, explaining the banking requirement that I had to comply with, vide my email dated **th April ****. The insurer replied by email saying they will not refund the money as I had not cancelled the ECS in writing and that they were fully within their rights to debit my account.
The terms and conditions of the policy say that if premiums have been paid for two years, the policy acquires a surrender value – Part D, clause *.*. Hence both my policies had acquired a surrender value.
Part C, clause *.* of the terms and conditions of the policy also says that if I do not pay the premium on the due date or within the grace period, which in my case was ** days (being an annual premium payment mode), my policy, which had acquired a surrender value, would automatically switch over to reduced paid up mode unless revived. A reduced paid up mode policy is free from all liabilities of future premium payments.
I did not revive either of the policies, however, Maxlife Insurance Company wrongfully debited the premiums for both the policies from my bank account towards premiums that I was no longer required to pay and when I asked them to refund the money, they refused to do so.
I filed a complaint with the insurance ombudsman, Chennai. The ombudsman directed me to file a complaint with RBI, which made no sense to me.
I filed a complaint on https://www.consumerhelpline.gov.in/ asking for a refund and a compensation for the mental stress and trauma that I had to go through due to the unauthorised debits from my account due to which I was not able to comply to the bank's mandate.
In response to the complaint, the insurance company called me and offered to refund the money along with interest but refused to give me any compensation. I refused to accept the refund and interest unless they also gave me the compensation I had asked for. The phone call was followed up with an email mentioning that they are willing to refund the premiums along with an interest on the same.