DEFAULT OF POLICYHOLDER IN PAYMENT OF THE PREMIUMS WITH REGARDS TO THE NON-LIFE INSURANCE

Abstract

This paper examines the policyholder's obligation to pay premium, within the context of the concepts of debtor, creditor, place of performance and timing of performance, in addition to the characterizing of an insurance agreement with respect to the performance period and its synallagmatic nature, so as to determine the consequences relating to default. In this respect, the examination of an unauthorized representative's legal liability, who acts on behalf of the policyholder, was necessary and a conclusion has been reached with respect to it that an obligation to compensate in lump sum is foreseen. In addition, it concludes that the delivery of the policy does not constitute a condition for the obligation to pay premium to become due and payable and that such grants the policyholder a right of defense. Following the characterization, the conditions and consequences of default have been outlined in general. Thereafter, the consequences contained in Article 1434 of the Turkish Commercial Code in accordance with the period that corresponds to before and after the commencement of insurance coverage have been explained. Finally, it has been emphasized that the non-payment exception is applicable.