Ombudsman's Advice

18
Jul

DOs AND The DONTs: DO Pay the Premiums on Time

In Life insurance, however difficult it may be, please pay the premiums due on time. If premiums are not paid, the life policy can lapse. You cannot then get your money back unless there is a ‘maturity value’ or “surrender value” to the policy which is normally a minimum of three years. Also, remember during that time your life was covered. Some people have asked me to direct the insurance company to refund the premiums paid. This cannot be done unless there is a ‘Surrender Value’ – because you were protected and covered during that time.

If your life policy lapses because you have not paid premiums on time, the insurer can ask you to fill up a new proposal form to continue the policy. By this time, your health conditions may have changed and deteriorated with age and you may have developed medical ailments which you have now to disclose. If you had not allowed your earlier policy to lapse, you would not have had the need to fill up a new proposal form and the insurance company had accepted the risks of the ailments that you may have developed. So please ensure to pay the premiums on time and do not allow your life policy to lapse.

Dr. Wickrema Weerasooria
About Dr. Wickrema Weerasooria
Having obtained his PhD from the London School of Economics, Dr Wicrema Weerasooria is an Attorney-At-Law, Supreme Court of Sri Lanka and Barrister and Solicitor, Supreme Court of Victoria, Australia. He is also distinguished former Public Administrator, Lawyer, Academic, Diplomat and Financial Consultant and has been holding office as the first Insurance Ombudsman of Sri Lanka since 2005.

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