Hi Ninad,
XML type is supported from Java 1.6 version. Cross check what version of Java you are using
Make sure the driver you are using is of Type 4 driver files. If not, use the appropriate .jar file
As you are in 7.x version, if you are not in Java 1.6, you have to convert the XML type to a VARCHAR using stored procedure or some other way, and then perform Insert.