The parents of a deceased man sought payment of a mortgage protection sum of €100,000 following his death.

The company refused payment, because his policy lapsed due to non-payment of the monthly premium.

It emerged that the assured person died three days after the policy lapsed and, because a weekend intervened, probably hadn't received the company letter regarding this.

The ombudsman ruled that while onus was on a policyholder to pay premiums when due, having regard to the overall circumstances, the company should pay the dead man's estate €25,000 in full and final settlement.