Last Updated on March 31, 2021
5. Late Payment Of Installments
The insurance can be canceled in the event of default by the insured, but there is tolerance between the non-payment of a portion of the premium and the cancellation of the policy. If the insured shares the premium and fails to pay one of the installments, the insurer must contact him and his insurance broker to notify him of the default. He doesn’t have the policy canceled immediately, so he still has the right to coverage. But he is given a deadline to rectify the situation, during which he must pay interest. Only if the insured remains in default will the insurer be able to cancel the policy. He will lose cover and will not get back anything he has already paid.
