Refusal to pay Insurance Claim Money by the Cooperative Society.

Hello, Sadly in one mishap, my Dad passed away on 01.10.2015. # He was the member of a Co-operative Society. # While during his membership, he undertook the liability to repay the loans of 2 borrowers as a "Surety". # One of the borrowers defaults and his installments was started deducting from my father's salary and the other one was repaying his installments regularly. # Then one day my Father passed away. I went to the Society and came to know about the Group Insurance Policy. After providing the necessary documentations, my father's claim was settled by May'2016. However no intimation was given to my family regarding the settlement. I visited the insurance company's branch on July'2016 and came to know that the amount had already been cleared by the Company to the Society. One of the Debtors in default, is still in Service at a PSU but no action was taken on him by the Society yet. And the other one, got retired from the same Organization, however at the time of his retirement, the Society willfully didn't take recover the Loan due from him just because the Chairman of the Society and him were Friends. But now he was also stopped the repayment. Now the Society is demanding me to repay the entire Loan due from both the Principal Debtors which is approximately ?6Lakhs and after that he will release the Insurance Money of ?8Lacs. What are the Remedies available to me being the nominee of the deceased surety? Am I liable for the said amount? What actions can be taken against the Society? Kindly help me out at your earliest. Thanking you in hope. Regards Tuhin.