Premium shall be paid at the head office of the insurers or of the authorized agent designated by them for the purpose and holder of a written mandate.
The effective date of the coverage shall depend on the payment of the premium by the insured. As concerns contracts renewed by tacit consent, the non-payment of a premium or a fraction thereof after ten days of its due date shall lay coverage open to suspension after a period of not less than thirty days following notification of the insured. In the event that the annual premium has been divided up into instalments, the suspension of coverage, a result of non-payment of one of the premium instalments, shall affect the contract till maturity, without it being necessary to renew it.
The contract not terminated shall become effective again for the future at noon on the day following payment to the insurers or their agents designated to this effect, the premium arrears or, in case of splitting of annual premiums, the portions of premium that were the object of the notification and those that became due during the suspension period, as well as legal proceeding and recovery charges.
Formal notification or termination for non-payment of premium must be done by registered letter or countersigned mail.
However, the insurer who gives his guarantee/coverage by stipulating an effective date in the contract document without payment of the premium can not rely on the preceding paragraph to refuse coverage of a claim when the provisions of paragraph 3 have not been applied.
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