My insurance agent does not collect the premium of the policy renewal before the due date. Is there any provision to penalise him?
You could consider complaining to the insurer and seek a change in the agent who will manage your policy in future
My insurance agent does not collect the premium of the policy renewal before the due date. Is there any provision to penalise him?
Rita Kapur, Delhi
Ideally, insurance agents must collect the premium before the due date and deposit the same, it is not obligatory on their part to do so. In fact, after issuance of policy, the responsibility of keeping the policy in force lies on you, the policyholder. Therefore, there is no provision to penalise agents for not collecting the premium before the due date. You could consider complaining to the insurer and seek a change in the agent who will manage your policy in future. Today, most insurers have the facility of collecting premium payments online, which you too could use as an option to pay your insurance premiums than depend on any agent to collect the premium cheques from you. You could also instruct your bankers to make the periodic payments on your behalf through the electronic clearing system (ECS) by instructing them for future timely premium payments.