Bajaj allianz policy received directly from bank

Dear sir / Madam, my name is lalit bandil. I am a loan account holder of central bank of india (gird branch lashkar, gwalior) with a/C no. XXXXXX4437. It is an educational loan of amount 000. I am paying interest of the loan regularly from the day I have taken this loan and I have also started to pay principle amount by installment from last few months. Few days before I have received a insurance policy of bajaj allianz, which is a accidental policy of 000. I was wondering because I have never contact to any person from bajaj allianz regarding this insurance. After reading the policy and contact to customer care of bajaj company I found that the policy is related to my loan account. Bajaj allianz have give me a insurance on the behalf of central bank of india and I have to pay the premium amount of that insurance otherwise the amount will automatically deduct from my loan installment. So regarding this matter I met the branch manager of the gird branch gwalior. The branch manager told me that "cbi made a rule that all the loan holder will have to take this policy, the reason is for loan guaranty and recovery purpose". I have already submitted two life insurance policy of my family mambers and some blank cheques as loan guaranty, which is not required for the loan of amount below 000. So what is the need of this insurance policy? if it is required and if there is any clause in cbi rulebook regarding this policy then kindly provide me the details of this clause. Otherwise please take some action and guide me that what should I do next. Here I attach the scanned copy of that policy so it will more convenient you to understand the matter. Thanking you.. regards, lalit bandil