Section 86: Assumption of risk by general insurer

86. Assumption of risk by general insurer (1) No general insurer shall assume any risk in respect of such general insurance policy as may be prescribed except where the premium payable is received by the insurer in such manner and within such time as may be prescribed. (2) Where the premium payable under subsection (1) is received by a person on behalf of the insurer, the receipt shall be deemed to be receipt by the insurer for the purpose of that subsection and the onus of proving that the premium was received by a person not authorised to receive the premium shall lie on the insurer. I15 – 57 [Issue 1] Insurance Act (3) Where a person receives on behalf of an insurer premium on an insurance policy referred to in subsection (1), that person shall remit the amount to the insurer within such period as may be prescribed. (4) For the purposes of this section, where— (a) the premium is remitted through postal money order or cheque sent by post, the date of booking the money order and the date of posting the cheque shall be treated as the date of payment of the premium if the cheque is honoured; (b) the premium paid on or before the commencement of the risk, to the insurance agent shall be treated as equivalent to the payment of premium to the office of the principal insurer.