Business to Insurances

Late Pay Premiums, what risks?

Because it can be so busy you forget to pay the insurance premium to be paid, and what will happen if you are late paying a premium to the insurance company?

If you are late paying the premium for your insurance policy will automatically be canceled (lapsed), and most of 'The insurance company will not provide a' Notice of Cancellation '. Because insurance companies berpatok the provisions Psaki (Standard Fire Insurance Policy Indonesia)

Section 2: Payment of Premiums
  "... That any premium payable have been paid in full and has clearly accepted entirely by the Insurer.

2.1.1 the payment of the premium payment must be made within a period of 30 (thirty) calendar days from the date of entry into force of policy;

So also in the policies AAUI standard (General Insurance Association of Indonesia) other premium payment must be paid in full within 30 days. If there is any delay in payment of the policy premium automatically canceled by itself without having to issue cancellation endorsement, as set out in Article 2 is

2.3. If the premium is not paid in accordance with the terms and within the time specified, this Policy is canceled by itself without having to issue cancellation endorsement from the date of expiration of the grace period and Insurers released from all liability for damages from the date intended.
 
Delay in paying the premiums can be one cause of the claim is rejected. Try to always pay your premiums on time so that your cash value continues to grow, and insurance coverage continues to run. To avoid delay in payment of insurance premiums, you should use auto debit facility from your bank savings account.

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