Failure to pay premiums
| 15A.1 |
If a premium under a policy, other than a fund policy, has not been paid on its due date, the insurer must notify the policyholder of the non-payment within 15 days after the payment was due, and the policy and the cover must, notwithstanding anything therein to the contrary, in the case of a policy under which there are to be two or more premium payments at intervals of— |
| (a) |
one month or less, remain in force for a period of 15 days after that due date; or |
| (b) |
longer than one month, remain in force for a period of one month after that due date, or for such longer period as may be determined by agreement between the parties. |
| 15A.2 |
If the overdue premium in respect of a policy referred to in rule 15A.1 is not paid by the end of any such period, the policy must be dealt with in accordance with rule 15A.3 if applicable. |
| 15A.3 |
The remaining value of a policy referred to in rule 15A.1 which, after the satisfaction of any claim of the insurer which is secured solely by the policy benefits to be provided under the policy, is greater than half of the aggregate amount of the premium payments due thereunder during the period of 12 months commencing on the due date of the unpaid premium, the insurer must— |
| (a) |
inform the policyholder of the amount of that remaining value and notify him or her that the policy will remain in force, in accordance with the documented procedure of the insurer, until – |
| (i) |
the policy no longer has any such remaining value, whereupon it will lapse; |
| (ii) |
the payment of premiums is resumed; |
| (iii) |
the provisions of the policy are amended, in accordance with the rules of the insurer, so that it becomes a policy which is fully paidup; or |
| (iv) |
if the policyholder so requests, the policy is surrendered, in accordance with the rules of the insurer, and so much of the remaining value as then remains is, subject to section 54, paid to the policyholder; and |
| (b) |
deal with the policy accordingly. |
| 15A.4 |
An insurer must have documented procedures which to the satisfaction of its statutory actuary prescribe a sound basis on which, and the methods by which, a policy is to be valued and otherwise dealt with for the purposes of rule 15A.3. |
[Rule 15A inserted by rule 9(b) of Notice No. 997, GG 41928, dated 28 September 2018]
Public Service Commission Act, 1997
