Policy Clauses Of Insurance Contract Should Be Interpreted Holistically: NCDRC

The National Consumer Disputes Redressal Commission, under Justice A.P. Sahi, ruled on a complaint against PNB Metlife Insurance for terminating a Unit Linked Insurance Policy (ULIP) after the policyholder ceased premium payments. The commission noted that policy terms allowed reinstatement upon payment of arrears, but the complainant failed to request reinstatement as required. \r

Emphasizing the need to interpret policy clauses holistically, it rejected the complainant's argument that termination was unjustified. The commission highlighted that termination due to non-payment, as per policy terms, didn't necessitate prior notice. \r

The insurer's accurate surrender value calculation and adherence to policy provisions were upheld, leading to the dismissal of the complaint.