This, if correct, is utterly dreadful.
The behaviour of the company, if true, is dreadful. The treatment of someone in need of assistance is dreadful.
I am aware how unhelpful 'certain' people can be in respect of pilots losing their medicals.
I am aware of an AME, this year, who pulled a pilots medical, and then refused to have any dialogue with the pilots LoL insurer. This chap could have been in the same position as the OP.
The only advice I can offer - which might not help now - for future reference, is how good Hiscox Global are. Not cheap, but they do pay out when needed, and appear to be highly professional.
Best wishes, and keep fighting.