Relevant facts in brief are that Sri Madhu Reddy (since deceased) obtained Personal Accident Policy from the OP-The Bajaj Allianz General Insurance Co. Ltd., Pune, Branch, (Maharashtra) valid from 25.01.2010 till 17.01.2015 for a sum of Rs.10,00,000/- where nominee was his wife Smt. Sujata. During the subsistence of the said policy; Madhu Reddy died in a motor vehicle accident on 21.3.2010. The nominee had filed a claim before the OP, but the OP repudiated the claim as the Policy holder was under the influence of alcohol while driving the car at the time of accident. Hence, Complaint No.23/2011 was filed by Smt. Sujatha (wife of deceased) before the District Consumer Disputes Redressal Forum, (in short, ‘District Forum’) Nizamabad for claiming the accident benefit and proper compensation.

2. The District Forum, Nizamabad allowed the complaint and directed the OP to deposit Rs.10,00,000/- with interest @ 9% per annum from the date of repudiation i.e. from 07.07.2010, the OP is further directed to pay Rs.20,000/- towards compensation for deficiency of service and negligence, and Rs.2,000/- as costs.

3. Against this order, the OP filed the First Appeal No.450 of 2012 before the Sta