General insurance Can Insurance Companies Drop You?

[kayode10]

I was listening to a radio program about insurance packages and the policy made by the country legislatures to buy the insurance company.

The legislators are trying to come up with a policy that will make it mandatory for every client's to always pay premium regularly to the insurance company.

This policy has created a lot of arguments among the financial analyst and the stakeholders in insurance sectors.

A client is required to pay premium either on monthly basis or annually.

A situation may occur in which you may find it difficult to pay your premium for like two or three months.

This prompts me to come up with this question and ask that is it possible for insurance company to drop clients as a result of irregular payment of the premium?

 

[Wisdom01]

Am not sure about that , they might keep accruing all the expenses and sum it up , instead of just dropping you off, but you must give a valid reason for not paying the premium , if not they might sue the person to court if the person refuse to pay for no reason

 

[btaliat]

There are some people that are capable of paying their insurance premium for a year in just one payment. Will insurance company reject the money? No will be aptly be the answer, that means companies can not as well drop who's unable to pay his premiums, they will only count it as his debt.

 

[Nite]

Yes, it could be possible for insurance companies to drop their clients as a result of irregular payment of the premium, because according to them you have breached your contract. So, you should always pay your premium on time or within the grace period, otherwise you risk losing your coverage.

 

[Mika]

I do not know how it goes in other countries, however, in my home country, the preferred method of paying premiums is on yearly basis. If the insurer fails to pay the premiums, he is given the whole year until the next premium date to pay the premium with fines. If he does not renew again, his policy will laspe.

 

[Mataracy]

I think since insurance has make it free for every client to choose the type of policy they can afford and pay and the time due. But in a case where a client default after one or two month and the non payment still continue then the will take action by terminating the contract.

 

[Good luck]

It is possible for insurance company to stop dealing with a customer by dropping the person if there is a bridge of contracts.if the person does not meet up with the premium payment as at when due,there may be issue and the company may decide to drop such fellow and stop attending to any challenges or obstacles that may arise to such person

 

[Mandy96]

I do not think this make any difference to the insurance policy because right from time, the insurance policy clients do pay premiums which validates the particular insurance policy plan the clients opt for. And it is very understandable that without this premium, the insurance plan the client opt for will not hold