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SanchitSanchit asked 2 months ago

Hey Sir, Good Morning. Sir I have a doubt regarding Insurance Companies.
If premium is not paid to ins co but same has been guaranteed by the policy holder however before actual payment loss has been incurred. So is Insurance Co will be liable to pay compensation?

1 Answers
RaviRavi Staff answered 2 months ago

Section 64VB. (1) No insurer shall assume any risk in India in respect of any insurance business on which premium is not ordinarily payable outside India unless and until the premium payable is received by him or is guaranteed to be paid by such person in such manner and within such time as may be prescribed or unless and until deposit of such amount as may be prescribed, is made in advance in the prescribed manner.
IRDA regulations says that premium should be first received and then only commencement of risk will happen, so only guarantee is not sufficient for commencement of risk.

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