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New Delhi, Nov 14: An insurance contract's terms should be interpreted in a way, which is beneficial to the consumer and does not deprive him of its advantages, the Delhi Consumer Commission has said. "It is a universal rule of interpretation of a contract of beneficial nature like insurance contract or the beneficial legislation that every term and provision should receive a beneficial interpretation.
"And if there are more than two interpretations possible, the interpretation which goes in favour of a consumer should be acted and relied upon," Commission president Justice J D Kapoor said.
The observations came on an appeal of New India Insurance Company Ltd against the verdict of a district consumer forum asking it to pay a sum of Rs 3.72 lakh to a man whose insured car was stolen.
The company had taken the plea that the consumer had failed to intimate it about change in nature of the car's insurance from commercial to personal use. "The factum of theft of car is not disputed as FIR was lodged in a police station. The plea of the company that there is a difference between the insurance premium in respect of commercial vehicle and the private car is self-defeating as the premium of the personal car is higher than that of commercial vehicle," said the Commission. —PTI
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