What happens to coverage if a termination notice for non-payment is sent?

When a termination notice for non-payment is sent, the coverage typically remains in force for an additional period, specifically 10 days after the notice is issued. This grace period allows the policyholder some time to rectify the situation by making the overdue payment without losing coverage immediately.

This approach helps to protect consumers, as it provides a buffer against the immediate loss of coverage, which might adversely impact them during a critical time when they might need the insurance. The existence of this period also encourages policyholders to act quickly and communicate with their insurer regarding their payment situation.

This context illustrates the importance of understanding the terms and conditions associated with insurance policies, including the implications of non-payment and the procedures surrounding termination notices.