CIMA addresses outstanding payments

To improve the situation of arrears that are threatening the viability of insurance companies, CIMA introduced on April 11, 2011 significant changes to the insurance code.

• It is henceforth forbidden for an insurance company to renew a contract whose premium has not been paid;
• In case of failure to pay the premium or part of the premium within the agreed time, the insurance contract is automatically and lawfully terminated;
• No insurance intermediaries are allowed to collect premiums, to make out or receive checks made payable to their order. This prohibition does not apply to payments made in cash not exceeding 1 million FCFA (2 278 USD);
• Finally, intermediaries have a maximum period of thirty days to remit premiums to the insurer. In case of non payment of contributions received in a timely manner, the non-paid sums shall yield interests rates twice as much as the discount rate.