Deduction of Insurance installments when policy is inoperative and claim is denied

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Sweet as

14 April 2021
One of my friend has recently had a case of car jacking. After reporting the incident to Victoria Police, he immediately called his insurance company to report the matter. The insurance company told him that he was un-insured at the time since his first installment had been declined by his bank. Notwithstanding, he lodged an appeal with the insurance company. The final outcome is expected on 16.04.2021. While this is pending, the insurance company has deducted two installments towards the insurance after this incident and while the appeal is still pending. My question is whether the insurance policy existed at the time of the incident, bearing in mind that my friend was not informed about the dishonor of the payment at the bank or when the payment would be presented again to his bank again as per the terms of the policy.If not, is he entitled to the refund of these two installments. Thank you