insurance

I have issued a cheque towards first year premium along with the proposal for insurance. The cheque dated the first of the month has been encashed by the insurance company on the third of the month. But they have issued the insurance policy only on the 19th of the month with the date of starting of risk shown as the 22nd of the month. As my cheque for the premium amount has been encashed on the third of the month itself, is not the insurance company liable to cover the risk from the date of encashment of the cheque? Does not the encashment of my cheque and crediting it to the insurance company's account signify that they have accepted the risk from that date itself?

There are guidelines given with each quote that state when the coverage will begin. The fact that they cashed your check unfortunately does not mean that coverage has started. If you think this should be a different date then review the information given to you when quoted and see what the stipulations are.

Good luck!

No, the date of check cashing is NOT the date the risk begins.

The date a policy comes into force has nothing to do with when the policy is paid for. On a property policy, the effective date is either: the date you take possession of the property if you are purchasing it; the day the previous policy expires to ensure continuous coverage; the date you sign the application (if there is currently no insurance and the broker has binding authority) or the date the insurer confirms coverage is bound (if there is currently no insurance and the broker has no binding authority).

Also keep in mind with some types of policies the effective date of the coverage may not be the date coverage is afforded. This is more common in health type policies, where there may be a waiting period after the effective date before you can place a claim.