Ledger under which group

If you are paying premium on insurance, create a premium account in ledger.. 

If you are receiving a claim through cheque, there should already be a National insurance co. (debtor/receivables) Ledger. 

The above is correct because you don’t need a provision for insurance as the occurrence of claims is very rare. Next, since prepaid insurance is a real asset, create a separate account if you want to keep track of the expenses under current assets. Then add insurance premium account to indirect expenses account 

@ Surinder

Please find out under what accounts you have purchased the insurance account then derecognise the prepaid insurance.

when you purchased:

Insurance expense a/c 9100₹ income statement

Payables a/c 9100₹ balance sheet liabilities

once you received your policy and cheque is cleared

Insurance a/c 9200 balance sheet current assets

Bank a/c 9200 balance sheet current assets

when you cancelled it and received a refund,

Bank a/c 8100₹ Balance sheet current assets

Loss on insurance 1100₹ Income statement profit and loss account

To Prepaid insurance 9200₹ Balance sheet current assets

@ Mukherjee

If you use accruals, which is the case, there is no other entry which best suits the scenario here. Usually, ERP’s commonly use purchases, expenses, capital,cash/bank and insurance ledgers. Supposing, if you purchased it with cash

Insurance a/c

To cash a/c

but how will one record the expense? 

Insurance expense a/c

To Insurance co. a/c

then to recognise an asset, its

Insurance co. a/c

To Cash a/c

this insurance co. is treated as Sundry creditors which is again related to payables or suppliers account. It depends upon what ledger accounts people use.