I was away on a holiday for a couple of months and did not realise that my direct debit arrangement with the insurance company had lapsed. I missed one premium payment and am now stressing about what will happen with my insurance policy.
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Neha Sharma, Hillsdale 2036 NSW
- All policy holders must regularly pay the premium by the due date to get insurance cover. Some insurers allow policy holders to make payments either:
- annually;
- monthly;
- quarterly; or
- half yearly.
- If you do not pay the premiums on time you may no longer be covered under the policy and your insurer may:
- refuse to pay a claim; or
- cancel your policy without notice.
- You should check your Product Disclosure Statement to see the specific requirements under your policy.
- You should also contact the company as soon as possible and discuss your situation. Since in this case the payments were not intentionally missed the company may be willing to impose no penalty.