INSURANCE CLAIMS

Evening Post, Volume CXV, Issue 138, 14 June 1933, Page 5

INSURANCE CLAIMS

RENEWAL RECEIPTS

The custom of insurance companies in issuing renewal re'eeipts to clients before the payment of renewal premiums is not, likely to be altered as a result of a judgment delivered in New Plymouth last week by Mr. Justice Reed (says the "Taranaki, Herald"). His Honour ruled that the possession of a renewal receipt .enabled the appellant in a Supreme Court actipri to recover from the defendant insurance company tho sum set out ■in his policy, even though the renewal, premium had noj. been paid. , : : The manager.of a leading insurance company doing business in ; New. Plymouth explained that, in the cases of approved clients, renewal receipts were generally • sent out a few days before the expiration of the policy. This applied, to about 80 per cent, of the insurance business.' , It was pointed out that the custom had only become general in recent years. The majority of companies held that policies were renewed, from the time renewal receipts were sent out and* reasonable time was allowed in which to- pay. Custom countenanced the transaction of credit business. Only-a' short time ago, stated the manager, a client f. several years' standing had had a house.burned down. The house had been insured for. £750, but, although the renewal receipt had been cent out, no premium bad been paid. The company, however, paid out on the policy as. if the'premium had been fprthcoming. So far as his company was concerned, stated the manager, there would be no alteration in this method of doing business.