Page 141 - IC38 GENERAL INSURANCE

I. Renewal Notice
Most of the non-life insurance policies are issued on annual basis.
There is no legal obligation on the part of insurers to advise the insured that his
policy is due to expire on a particular date. However, as a matter of courtesy
and healthy business practice, insurers issue a renewal notice in advance of the
date of expiry, inviting renewal of the policy. The notice shows all the relevant
particulars of the policy such as sum insured, the annual premium, etc. It is also
the practice to include a note advising the insured that he should intimate any
material alterations in the risk.
The insured‟s attention is also to be invited to the statutory provision that no
risk can be assumed unless the premium is paid in advance.
Test Yourself 8
Which of the below statement is correct with regards to renewal notice?
I. As per regulations there is a legal obligation on insurers to send a renewal

notice to insured, 30 days before the expiry of the policy
II. As per regulations there is a legal obligation on insurers to send a renewal

notice to insured, 15 days before the expiry of the policy
III. As per regulations there is a legal obligation on insurers to send a renewal

notice to insured, 7 days before the expiry of the policy
IV. As per regulations there is no legal obligation on insurers to send a renewal

notice to insured before the expiry of the policy

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