Policy to omit name in story (3)
I believe the answer is:
lie
'story' is the definition.
(story can mean a fabrication)
'policy to omit name' is the wordplay.
'policy' becomes 'line' (I've seen this before).
'to omit' indicates named letters should be taken away.
'name' becomes 'n' (common abbreviation e.g. on forms).
'line' with 'n' removed is 'LIE'.
'in' is the link.
(Other definitions for lie that I've seen before include "Story" , "found" , "Rest; deception" , "Mistruth" , "Disinformation" .)