Complainant/petitioner’s husband, Trinath Sasmal, had taken a insurance policy from the respondent insurance company for a sum of Rs.20,000/-. The policy commenced from 28.10.2001.  On 13.12.2002, the insured fell from a tree and received injuries.  He was undergoing treatment in a hospital at Puri where he died on 8.8.2003.  The complainant filed claim to the respondent, which repudiated the same on the ground that the policy was lying in a lapsed condition due to non-payment of the premium.   Aggrieved by this, petitioner filed the complaint before the District Forum.

District Forum allowed the complaint and directed the respondent to pay the insured amount to the petitioner alongwith interest at the rate of 6% per annum.   However, the respondent was put at liberty to deduct the amount of unpaid premium from 28.1.2003 to 8.8.2003.  Rs. 500/- were awarded as costs. 

Respondent, being aggrieved, filed the appeal before the State Commission.  State Commission came to the conclusion that since the policy was lying in a lapsed condition, the petitioner was not entitled to the insured amount and accordingly set aside the order of the State Commission and dismissed the complaint.

Petitioner is not present despite service.  Dismissed for non-prosecution.

Even on merits we find that except for paying the first instalment, the insured did not pay the subsequent instalments.  On the date of death the policy was lying in the lapsed condition.  Since the policy had already lapsed, respondent is not liable to pay the insured amount.

We find no infirmity in the order passed by the State Commission. 

Dismissed for non-prosecution as well as on merits with no order as to costs.