ABSTRACT
The premiums are paid to the insurer in consideration for the policy coverage provided. The amount of premium is normally fixed in the policy at the outset. Some policies may contain a clause which requires additional payment of premium by the assured to provide coverage in some defined circumstances. A marine insurance broker is personally liable for payment of the premium and he is entitled to a commission in return for the service to his client. The Consumer Insurance Act 2012 reformed the duty of good faith in consumer insurance and the Act brought proportionate remedies for breach of the duty of good faith. The insurer argued that under the policy the claim can be collected only through CDL and that the course of dealing between CDL and the insurer involved a mutual set-off of sums due to CDL in respect of claims and sums due to the insurer by way of premiums.
