One Sri Shenishetty Prabhakar, resident of Ramayampet Village and Mandal, Medak District; was functioning as Mandal President of Ramayampet, between 1995 and 2000. He has taken Janata Personal Accident Policy (for short 'the Policy'), of the United India Insurance Company Limited (for short 'the respondents') for a sum of Rs.5 lakhs. on 15-04-1998. Prabhakar was also a loanee of the Manjeera Grameena Bank. The said Bank has taken out two policies, for sums of Rs.1 lakh and Rs.25,000-, covering his life. On 14-09-2000 he was shot-dead by the Peoples War Group Naxalites (for short 'the PWG'), at Laxmapur Village.

2. The petitioner herein is the wife of late Phabhakar. She submitted claims to the respondents. The latter, however, repudiated the claims, through separate letters dated 11-03-2002 and 08-10-2002, respectively, on the ground that late Prabhakar was involved in a criminal case. On a request made by the petitioner, the matter was referred to the Insurance Ombudsman, Hyderabad. He passed two separate orders dated 11-03-2002 and 11-12-2002, allowing the claims of the petitioner. He imposed a condition that the amount covered by the policy shall be paid, if it is estab