Page 22 - IC24 LEGAL ASPECTS OF LIFE ASSURANCE
P. 22
premium.
The rule of construction against the insurer and favourable to
the insured stems from what otherwise is called the rule of
Contra proferentum.
Life insurance policies are construed like other instruments.
The terms and conditions are interpreted in a fair and
reasonable manner by adopting the ordinary rules of
construction.
Insurance companies usually allow 1 month grace period for
payment of premium from due date.
If premium is not paid within the grace period, the policy
lapses.
If a lapsed policy is to be brought back into full force, it is
known as revival.
