I have just had a claim refused by warranty direct, what are my chances.

I bought a BMW 320i 2007 with full service history from the main dealer and what a lovely car it is. I had it serviced at my local BMW dealership in accordance with the service requirements. I am very happy with the car and bought a "Warranty Direct Car policy" to cover me for the big ticket items in case it needed them at some stage. I figured with a car with regular main dealer servicing should be ok but just in case took out the warranty. On the last service they pointed out a small oil leak which I needed to have investigated by BMW. That happened yesterday and they told me it was a sump gasket and vanos gasket and that the cost would be 1061. No worries I thought as I had taken out additional insurance above the 380 policy to be able to let BMW work on my car. I called Warranty claim department who had me give the BMW dealership a direct number. BMW called Warranty Direct explained the work and I got a call from Warranty Direct saying that I was not covered under their policy. The policy says that oil leaks are not covered unless the engine has to be removed to fix it, as this job takes 7 hours to do. The entire suspension undercarriage has to be removed along with the axles, steering components and some AC pipes, the engine has to be supported during this process. So as you can see a big job. Reading the website blurb for Warranty Direct who are an insurance seller the state on the front page they state "Complete protection" well that statement is misleading, the policy states they do not do oil leaks unless engine out as I said which would avoid small jobs on other cars but this policy is tailored to my car and a 1061 repair is not covered I have wasted my money on a bad policy. As usual read all policy details and the small print and do not assume anything. As for me I am proceeding with a complaint to Warranty Direct which will go nowhere until I take it to the ombudsman which I will do as they are mis selling on their website. I have the time the patience and the experience. If anyone else has had a problem with Warranty Direct I would like to hear from them.