Do you have any proof of the cancelation of the main policy? Did you courier the cancelation note? Do you have a POD or AD from the Post office? If you have some proof that you sent the same to their office in Chennai, you can approach them with a xerox of the same. Have they issued any policy to you? If they haven't then you can approach the New India Assurance ( i believe it is the company)whose address and phone no. you would find on the last policy issued to you to find out if they have indeed renewed your policy. If they haven't then there is no case to pay this premium. Even if they have and you had sent a cancellation note, you can appraoch the banking ombudsman at www.rbi.org.in and lodge your complaint.
