LEGAL SENSE (Hint 38)
by ANSLAM C. AGIM, ESQ
“Payment of Insurance Premium in Advance is a Condition Precedent to Creation of Valid Contract of Insurance”.
Payment of insurance premium by a Person (the insured) to the Insurance Company (the insured) or the authorized Insurance Broker is a condition precedent to a valid contract of insurance.
There shall be no cover in respect of an insurance risk, unless the premium is paid in advance. A valid contract of insurance is made when premium is paid for the insurance.
Legal Authority: Section 50 of the Insurance Act, CAP. I17, Laws of the Federation of Nigeria, 2004.
See also, NICON INSURANCE PLC v. ONIGBANJO (2018) ALL FWLR (PT. 939), PAGE 2006 @ Pp. 2029 – 2030, paras. G – A; P. 2030, para. C.
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