Terms Of Insurance Contracts Should Be Strictly Interpreted: NCDRC

In another significant insurance ruling, the NCDRC held that ambiguous terms in insurance contracts must be interpreted in favor of the policyholder. The Commission stated that where the language of the policy is unclear, it should be interpreted to the benefit of the consumer. This decision reinforces the principle of consumer protection, ensuring that policyholders are not disadvantaged by complex or vague terms in insurance contracts.