Premiums

Paying the premium in accordance with the insurance policy is the primary contractual obligation of the insured. This chapter discusses rules of law and practice in relation to premium payment, the method of payment and the way of demanding payment, the consequence of late or non-payment, modification of premiums during the insurance period, and the circumstances under which the premium paid by the insured may be returned to the insured or retained by the insurer. The matters relating to the insured&s;s payment of premiums, such as the time of payment, the amount, the method of payment, the time period, the place of payment, the payment of premiums and the effectiveness of the contract, etc. are, to a large extent, matters of contractual agreements. To avoid or reduce disputes about premium payments, it is recommended that the insurer should clearly prepare the wording of the terms to reflect the real intention of the parties.