{"id":330,"date":"2020-04-13T09:29:14","date_gmt":"2020-04-13T09:29:14","guid":{"rendered":"https:\/\/sudhirkumarjain.com\/shop\/?p=330"},"modified":"2020-04-13T09:29:14","modified_gmt":"2020-04-13T09:29:14","slug":"insurance-issue-of-the-week-31","status":"publish","type":"post","link":"https:\/\/sudhirkumarjain.com\/shop\/insurance-issue-of-the-week\/insurance-issue-of-the-week-31\/","title":{"rendered":"Insurance Issue of the week -31"},"content":{"rendered":"<p><strong>Compliance of 64 VB for premium payment <\/strong><\/p>\n<p>At the time of receiving a proposal and\/or issuing of Covernote\/Policy , the premium is either collected in cash or cheque\/Draft or Bank Guarantee.<\/p>\n<p>For small insurances \u00a0, the premium is generally paid in cash but in large proposals , when the premium is paid by cheque , the insured on many a occasion, may not be having sufficient funds in his bank account . After issuance of cheque , he may deposit money in next 1-2 days , hoping that \u00a0his account will not be debited earlier than that.<\/p>\n<p>However, there are chances that in large losses, where ever\u00a0the insurance company gets suspicious, they may resort to compliance of Section 64-V(b) and get the insured&#8217;s account certified by his bankers. In case, there was not sufficient balance on the date of issuance of cheque, then the claim settlement may be jeopardized.<\/p>\n<p><strong>Section<\/strong>\u00a0<strong>64<\/strong>&#8211;<strong>V<\/strong>(<strong>b<\/strong>)\u00a0of the\u00a0<strong>Insurance<\/strong>\u00a0<strong>Act<\/strong>\u00a0reads as follows: &#8221;<\/p>\n<p><strong>64<\/strong>&#8211;<strong>V<\/strong>(<strong>b<\/strong>). No risk to\u00a0be\u00a0assumed unless premium is received\u00a0in advance: (1) No insurer shall assume any risk in India in respect of any\u00a0insurance\u00a0business on which premium is not ordinarily payable outside India unless and until the premium payable is received\u00a0by\u00a0him or is guaranteed to\u00a0be\u00a0paid\u00a0by\u00a0such person in such manner and within such time as may\u00a0be\u00a0prescribed\u00a0or unless and until deposit of such amount as may\u00a0be\u00a0prescribed, is made in advance in the prescribed\u00a0manner.<\/p>\n<p>Thus , it is imperative that at the time of issuance of cheque , there should be sufficient balance in the account , for the compliance of Section 64(V)b of the Insurance Act<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Compliance of 64 VB for premium payment At the time of receiving a proposal and\/or issuing of Covernote\/Policy , the<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-330","post","type-post","status-publish","format-standard","hentry","category-insurance-issue-of-the-week"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/posts\/330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/comments?post=330"}],"version-history":[{"count":1,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/posts\/330\/revisions"}],"predecessor-version":[{"id":331,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/posts\/330\/revisions\/331"}],"wp:attachment":[{"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/media?parent=330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/categories?post=330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/tags?post=330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}