Insurer's Liability Is Determined Based On Strict Interpretation Of Terms Of Contract, No Deviation Allowed: NCDRC

In the case titled Zonal Manager, Life Insurance Corporation of India & Anr vs. Sunil Kumar, presided over by AVM J. Rajendra, the National Consumer Disputes Redressal Commission emphasized strict adherence to the terms of an insurance contract without any deviation. \r

Despite the insurer's argument regarding the complainant's alleged failure to disclose a pre-existing condition, the Commission upheld the District Forum and State Commission's decisions. It highlighted the importance of analyzing policy terms, citing precedents to underscore the necessity for strict interpretation of insurance contracts. \r

The Commission directed the insurer to disburse the sum assured of Rs. 2,00,000, along with any accrued bonus, and simple interest at 9% per annum, granting the Revision Petition in part.