Take it to the ombudsmen, i bet you see some action as soon as they get a letter asking them to explain the situation.
A few years ago i had an accident on the freeway, where the car that was involved ended up veering off the road and was written off.
To cut a long story short my insurer was not going to pay the claim. After a long fight with them i took it to the ombudsmen, and what do you know. They sent a letter saying that out of goodwill they would cover it, and i would just pay the excess.
The ombudsmen didnt have to do anything really, they just wanted to get the insurance companies version. Well thats all it took. I was stoked i didnt have to pay $47590 out of my own pocket...... or should i say pay it off.
any way give the ombudsmen a call, it cant hurt.