policy lapse without notification

my husband was paying premium for his father for a funeral policy, but hollard decided to only do thier 3 debit orders successfully and stopped debiting in apr 2012. they decided to lapse the policy without notfiying the customer after my father in law did a manual payment in the same month. now that my father in law pass away and we trying to submit a claim for my mother in law they decline it saying the policy lapsed. we have proof that the account alway had money to debit the account, and by law you need to notify the cusotmer before you laspe the policy. this is unacceptable for a high end insurance company. we need a feedback as soon as possible or we will go to the ombudsman if the feedback is unsetifactary.