|
A |
There is a lot of
difference between cancellation and non-renewal. By law,
no insurance company is allowed to cancel a policy which
is in existence for more than sixty days. But if the
insured fails to pay the premium on time or has made
made fraudulent statements/misrepresentations in the
policy application, then the insurance company has every
right to cancel a policy. Non-renewal happens when the
policy expires and neither the insurance company nor the
insured want to renew the policy. In case if the company
is initiating non-renewal, then it needs to give the
insured a certain notice period, and also give reasons
for dropping the policy. You have every right to
question in case of improper reasons. |
