Mataracy
VIP Contributor
CANCELLATION
Cancellation can be defined as the abrupt termination of the policy of insurance during the currency of the contract. This means that if a policy of insurance runs from 1st January, 31st December, any of the parties to the contract can decide to terminate the policy even immediately after take off or before the exploration of the policy.
REASONS FOR CANCELLATION
(I) Lack of insurable interest:- If it is discovered after the commencement of an insurance contract that the insured lacks insurable interest, the insurer can cancel the contract at- initially because the policy is deemed to be void from inception.
(ii) where there is a breach of a fundamental terms or conditions:- On any contravention of an important term or condition of the policy, the insurer can cancel the policy any time before the expiration of the policy.
(iii) Misrepresention or nondisclosure of a material fact
(iv) Transfer or change of interest or outright extinction of the subject matter of insurance; some insurance cancels a policy immediately the subject matter of insurance changes from the original owner(insured) to any other person or interest. Or when the insurer has performed his obligation under the contract by way of full indemnity. Occasion abound when the subject matter if insurance is outrightly sold by the insured.
(v) When the experience of the insurer is unsatisfactory incessant payments of claims under a policy can lead to cancellation.
(vi) When the insured is disappointed by the services provided by the insurer. As it has been expressed, the time an insurer is called upon to perform its obligation for which the insured has paid premium is at the time of loss or claim. Any shoddy treatment by the insurer and therefore ceases the policy.
(vii) When the insurer or insured went in to liquidation; when the insured is a corporate body,it can go bankrupt and wind-up.
Cancellation can be defined as the abrupt termination of the policy of insurance during the currency of the contract. This means that if a policy of insurance runs from 1st January, 31st December, any of the parties to the contract can decide to terminate the policy even immediately after take off or before the exploration of the policy.
REASONS FOR CANCELLATION
(I) Lack of insurable interest:- If it is discovered after the commencement of an insurance contract that the insured lacks insurable interest, the insurer can cancel the contract at- initially because the policy is deemed to be void from inception.
(ii) where there is a breach of a fundamental terms or conditions:- On any contravention of an important term or condition of the policy, the insurer can cancel the policy any time before the expiration of the policy.
(iii) Misrepresention or nondisclosure of a material fact
(iv) Transfer or change of interest or outright extinction of the subject matter of insurance; some insurance cancels a policy immediately the subject matter of insurance changes from the original owner(insured) to any other person or interest. Or when the insurer has performed his obligation under the contract by way of full indemnity. Occasion abound when the subject matter if insurance is outrightly sold by the insured.
(v) When the experience of the insurer is unsatisfactory incessant payments of claims under a policy can lead to cancellation.
(vi) When the insured is disappointed by the services provided by the insurer. As it has been expressed, the time an insurer is called upon to perform its obligation for which the insured has paid premium is at the time of loss or claim. Any shoddy treatment by the insurer and therefore ceases the policy.
(vii) When the insurer or insured went in to liquidation; when the insured is a corporate body,it can go bankrupt and wind-up.