Respondent’s son had taken Jeevanshree life policy in March 2004 with retrospective date with effect from March 2001 for a sum of Rs.5 lakh.  Petitioner was required to pay quarterly instalments of Rs.6,306/- in March, June, September and December.  Respondent’s son paid the quarterly instalments for March and June 2004 but did not pay for September 2004.  He died in January 2005.  Petitioner lodged the claim with the respondent, which was repudiated on the ground that the policy was lying in a lapsed condition.  Respondent made ex gracia payment of Rs.1,60,970/- to the petitioner.  Petitioner, being aggrieved, filed the complaint before the District Forum.

        District Forum allowed the complaint and directed the respondent to pay the insurance amount of Rs.3,39,063/- after deducting the unpaid premium with interest at the rate of 8% from the date of filing of the complaint within one month of the passing of order, failing which the amount was to carry interest at the rate of 12%.  Rs.2,000/- were awarded by way of costs.

        Respondent, being aggrieved, filed the appeal before the State Commission.  State Commission reversed the order of the District Forum and held that since the policy was lying in a lapsed condition, the respondent was not liable to pay the insured amount.

        We agree with the view taken by the State Commission.  Since the policy was lying in a lapsed condition, respondent was not obliged to pay the insured amount to the petitioner.  Dismissed.