Business Insurance How Renewal Notice is done.

[Mataracy]

There is no compulsion on the insurer (or indeed the insured) to renew a short term contract for a further period . But where the insurance cover may need continuing (as in property or motor insurance) and where the insurer wish to consider a renewed contract, he will send at the end of the contract a renewal notice. It is essentially a reminder to the insurers does this as a gesture of courtesy and in the hope of getting more businesses. Reminders are also sent to the holders of long - term insurance. These are not renewal notices, they simply remind the policy -holder that he will soon pay another premium installment.
If the notice is worded as a simple reminder of the existing cover and its expiring data, it has no legal function; it just reminds the insured who wishes to renew to makes new offer to the insurer. If on the other hand, the notice invites the insured to renew his contract, then by sending it the insurer has made the offer.

 

[Mika]

I have two insurance policies, and I can remember when my premium is due. However, my insurance company also sends me a text message one month ahead reminding me to pay the premium. The text message reminder helps me to arrange the payment so that I do not miss the payment dedline.