Story encompassing fine biography (4)
I believe the answer is:
life
'biography' is the definition.
(I've seen this before)
'story encompassing fine' is the wordplay.
'story' becomes 'lie' (I've seen this before).
'encompassing' is an insertion indicator.
'fine' becomes 'f' (abbreviation).
'lie' going around 'f' is 'LIFE'.
(Other definitions for life that I've seen before include "Animation" , ""But an empty dream" (Longfellow) - "As tedious as a twice-told tale" (Shakespeare)" , "'While there's .... there's hope'" , "Actuarial estimate of our remaining years" , "Birth to death" .)