Conditions for termination of any insurance policy.
Circumstances under which any insurance policy may be terminated by any insurance company.
Any insurance policy can be terminated by any insurance company depending on quite many factors.
Some of which if the insured is not aware of may decide to take the Insurance company responsible for the policy to courts of law which might lead to inconveniences of one party or both involved in the Insurance policy.
Yet in reality your insurance policy was worth termination by the Insurance company.
To avoid such inconveniences from arising which includes court charges on the party on wrong, we have decided to wrap up some of the conditions under which any insurance policy may be terminated by the Insurance company responsible.
These conditions cover almost all Insurance policies people take in any insurance company.
Please take note of them as almost all are accepted the courts of law of almost every country.
This awareness helps avoid court issues concerning Insurance policy terminations both on the side of the insured and insurer.
Insurance policies are worth to be taken but there are also some guidelines that govern Insurance policies by various Insurance companies, some of which include; policy termination which is key in today’s article.
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What does termination of an insurance policy mean?
This is the cancellation of the contract in-between the insured and insurer for which the insured also stops paying premiums, and the insurer also will not be responsible to compensate any losses to arise from any risks.
1. Incase the Insurance policy has matured.
Insurance policy maturity simply means that the policy agreed time period has expired.
Then therefore that Insurance policy is terminated automatically by the insurer.
2. if the insurer discovers falsified information in the insurance policy.
Some insured individuals decide to give false information in the policy for example false age, health status, for life insurance policy, total business property for business insurance policy.
They do this for purposes of being in need of exploiting the insurance companies and making financial gains out of the exploitation.
In any case the insurer realises any falsification of information stated in the insurance policy by the insured, the insurance policy is terminated immediately as this may cause financial losses on the side of the insurer. So to be safe from this, the insurer will terminate that specific insurance policy.
This is highly recommended in the “utmost good faith” principle of Insurance which requires the insured to truthfully declare any information to be included in the Insurance policy.
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3. Incase the settlement of the risk insured against by the Insurance company is over.
Just after compensation has been made for losses arising from occurrence of risks being insured against, then that specific insurance policy is terminated by the insurer.
So that means incase an individual wants to Insure the same property/ business, they then have to obtain another Insurance policy from the insurer afresh
4. Incase the insured approaches the insurer to terminate the insurance policy.
Sometimes the insured can decide to approach the insurer to terminate the insurance policy may be due high operational costs resulting from high premiums charged for the business insurance policies and other factors making the insured want to get rid of the Insurance policy, the insurer will have no option than to terminate the insurance policy.
5. If the insured delays to pay premiums within the agreed time period.
Some insurers can decide to terminate the insurance policy in any case the insured abandons to pay the premiums for quite a long period of time.
Though this is not allowed by law to terminate the Insurance policy as a result of failure to pay premiums, some insurance companies go ahead to do it.
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Incase the insurer has terminated your insurance policy cover without your notice or even your not familiar with the reasons for the termination of the insurance policy, please simply approach your insurer for more clearification about reasons for your insurance policy termination.
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