";
The insurance premium is the consideration that constitutes the policyholder’s essential obligation.
Under the terms of article 13 of the CIMA Code, paragraph 2, “the taking effect of the contract is subject to the payment of the premium by the policyholder”.
This provision makes the coming into force of the insurance contract subject to the payment of the insurance premium by the policyholder.
Is tacit renewal therefore dependent on payment of the insurance premium?
A distinction must be made between stipulated and non-stipulated tacit renewal.
If tacit renewal is not stipulated, the insurer who continues to collect premiums despite the expiry of the contract is deemed to have accepted the principle of renewal.
If tacit renewal is stipulated, the question is settled by article 14 of the CIMA Code, which provides that the insurer must notify the insured or the policyholder of the due date and the amount owed at least forty-five (45) days in advance.
This notice, in the form of a letter with acknowledgement of receipt or discharge, must state that the contract will be terminated ipso jure if the renewal premium is not paid within the period specified in Article 13.
Ultimately, tacit renewal of the insurance contract is dependent on the policyholder paying the premium, in the same way as for the initial contract.