Insurance Cheque Date: Dispatch or Receipt?
· Business · Business Standard
When an insurance cheque is sent by post, the date of dispatch is considered the relevant date for payment, not the date of receipt by the policyholder. This principle is based on the legal concept that once the sender dispatches the cheque through a reliable postal service, they have fulfilled their obligation. The risk of delay or loss in transit then shifts to the recipient. This rule ensures clarity in determining timely payments and avoids disputes arising from postal delays.
Why it matters
This clarification is crucial for policyholders and insurance companies to understand their rights and obligations regarding timely payments. It helps prevent disputes over payment deadlines and ensures that policyholders are not penalised for postal delays beyond their control.
Read the original report — Business Standard
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