Business Insurance What step can we take in cancellation of policy?

[Mataracy]

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.

 

[btaliat]

Cancelation of contract may be inevitable based on some conditions that may beyond the insured and insurance company. But I want to ask some questions based on your post. The first one is that is it only end of the year that the cancelation must take place? Will the insured has claim to his money if he's the one that breaches the contract?

 

[Mataracy]

Cancelation of contract may be inevitable based on some conditions that may beyond the insured and insurance company. But I want to ask some questions based on your post. The first one is that is it only end of the year that the cancelation must take place? Will the insured has claim to his money if he's the one that breaches the contract?

Good question bro. Though the Law allows 15 days as free period from the date of receipt of the policy document to the policy holder. The policy holder is allowed to cancel the policy during this period and get a return.
So, therefore once the policy terms do not match his or her expectations, they should commimunicate their intention to cancel the policy in writing.
And some insurance companies prescribe a standard form for cancellation of policy during the free look period. But mind you ,the free -look period is available only for life insurance policies. For health insurance policies, the term should be at least three years.

 

[Mandy96]

First of all, what condition could have happened between the insured and the insurer that might have made the client to determine to cancel his or her policy previously had with the insurance company. Second of all, I think it is all based on documents and contact so you can just involve a lawyer to do it the right way

 

[Jamoflondon]

In my little knowledge, I believe anything and everything about insurance is done by contract and if it is on contract then law will be involved, if the insured is ready to cancel the policy I think it will be necessary to involve the law firm, like a lawyer and the insurance company as well

 

[Wisdom01]

Yeah when there is a breach in trust and the agreement been made by both parties I think the insurer might likely choose to cancel the policy , that is why the insurance company must try to follow their terms and agreement as stated and not bypassing some for their own benefit only

 

[Phabbyfundz]

Every insurance company and insurers has regulations and each state or Geo political zone has it own states regulators that oversee the internal affairs of this insurance companies and insurers in a state or geopolitical zone. To cancel any insurance policy it would mean that you don't want to be part of that insurance policy.

 

[Alexandoy]

I think the most common reason for cancellation of the policy is the problem of continuing to pay the monthly premium. I have heard of many cases like that. Fortunately for the insured, some insurance agent offer the package adjustment where the premium will be lower but the amount of policy will also be lower. At least the policy is not cancelled.

 

[MOSIUR]

Law can play a vital role if the cancellation takes place. At the time of contact, there are some rules, terms and conditions between the insured and the insurance companies that must be obliged in future if there is any possibility of cancelling policy or any unexpected happenings. So, now steps of law should be taken.

 

[Nite]

Once the policyholder is convinced that the company's terms doesn't match with his expectations, then it's good if both parties communicate their intention to cancel the policy in written. The policyholder will then be allowed to cancel the policy during a given period of time, and later get a refund.

 

[Wisdom01]

Law can play a vital role if the cancellation takes place. At the time of contact, there are some rules, terms and conditions between the insured and the insurance companies that must be obliged in future if there is any possibility of cancelling policy or any unexpected happenings. So, now steps of law should be taken.

I think before even signing the contract at the first instance the insurance company and the insurer must have agreed on the happening or next option that might take place incase the policies ,I think every decision lies on agreement between the insurer and the company ,but most times they could involve the court of law incase of any problem

 

[Chibson]

Definitely there are times when people will no longer feel interested in insuring any of their properties or health. Some of this may be caused by breach of terms and conditions or agreement by the insurance company. There are people that may feel uninterested at certain points because the think bad incidences will not occur to them.