Travel insurance is mandatory for Visa interview. It basically compensates for baggage loss, medical emergencies during the temporary visa period.
Travel insurance can be obtained from Bajal Allianz .
Take it for a minimum period of 3 months. It will cost minimum Rs. 1800 for basic cover.
You can also opt for higher premium to increase the cost of cover.
We also got free travel insurance when we applied for TK health insurance through Coracle.
I do not know if it will be valid for interview. Visit to the consulate/Embassy to check if the Coracle provided travel insurance would satisfy visa requirements.
Incase its valid, you are in luck as it will save you around Rs. 1800