General insurance What happens to those who are negligent with the insurance premium?

[Alexandoy]

This concern was raised last year when the lockdown had started. Many have lost their job that for sure the installments couldn’t be paid. Cars and appliances that were bought on credit became a big issue that the government appealed to the the dealers to give consideration to the buyers. The insurance premium is also in the same vein that the jobless person has to surrender the policy.

In a dialogue that I had seen on the news, the insurance companies offered the insured to surrender the policy in order to be processed. The insured can, at least, receive the total amount of the premium he had paid and some interest provided the policy is more than 2 years old. That is a good bargain.

 

[Mika]

In my home country, you are given to pay the premium with additional late fees until the next payment date. If you miss paying insurance premium consecutively twice your policy will lapse. For example, if your payment date was September 1, you can pay the premium until August 31, 2022 with late fees.

 

[Jamoflondon]

Obviously they will have the liability to destroy their insurance plan, as far as I know about it, the premium is what makes it hold and it is very important for the client to pay it if he or she does not want it to be terminated. It is not to be ignored

 

[Mandy96]

I think it is obvious enough to know that the premium is what really validates the insurance policy plan, so of course if it stop or the client happens to be negligent with it, the contract will have issues and the insurer will have no other choice than to break the deal which could attract penalty

 

[btaliat]

People don't wish for bad things but they will surely happen. That's life and it can happen to anybody. The insurance company has a policy of asking for cogent reasons why some may stop or not consistent in paying his premiums, if the reasons are genuine, the person will be compensated.

 

[Wisdom01]

It depends on the insurance company and the policy or agreement that is been made , I think most insurance company could extend the date like for months and give you more opportunity to pay the premium fees when you start working again , that is what some do during the pandemic

 

[btaliat]

It depends on the insurance company and the policy or agreement that is been made , I think most insurance company could extend the date like for months and give you more opportunity to pay the premium fees when you start working again , that is what some do during the pandemic

That is very right of most insurance companies. There should be time when to pay the premium may be somehow difficult, that doesn't mean that the insurance companies will now write off the person. The worst to be done is to cancel his insurance policy and he will be compensated especially if he has a gold broker or agent

 

[Wisdom01]

That is very right of most insurance companies. There should be time when to pay the premium may be somehow difficult, that doesn't mean that the insurance companies will now write off the person. The worst to be done is to cancel his insurance policy and he will be compensated especially if he has a gold broker or agent

Yeah they will write off. It ,and If he have been paying his premium before he stopped paying , it's definitely going to be an advantage to him because the insurance company would find a way or medium to make compensation to him and make sure everything thing is settled that's the Benefits