Mistake in lyfe insurance`s nominee relation

my uncle had taken Birla Sun Lyfe Insurance Policy in nov 2007 and paid 1st premium of Rs. 3 lac for 1 yr.

After 3 months in Dec 2007, he was murdered by his own younger brother.

in a policy form he is declaring his marital status as "Single" and had nominied his wife but by mistake he wrote  "sister" instead of  "wife" in relation with her calumn  also spelling of his wife is wrong ie. instead of ARTI SINGH he wrote AARATI SINGH.

her wife didn`t know about this policy before and found policy documet after 4 yrs (1 month ago).

as we were not informing company for uncle`s (deceased) death, his policy was terminated in 2010 and a cheque of Rs 1.45 lac is sent to us reasoning failure of premium payment.

Anty (her wife) is filing a claiming request 20 days ago but they are not responding us since now.

for the above cenareo, i want to know is company has right to reject her claim? if yes then plz tell me any option for claming and is there any legal action which we will taken for same?