On payment of Insurance premium subscription.

In determining the validity of one of the various of contract/agreement between two parties hence the contract to insure a property by an insurance company. In other to have a tangible but enforceable agreement, it is obvious payment of premium subscription is to be made by an insuree to the insurance company.

This payment would warranty the canopy of insurance to be extended to proposed property. But when will the payment be validly said to have been before it can be enforceable?.

The payment is a condition that must be made before insurance canopy can be spread on the proposed property hence it is a Condition precedent as it has been warmly observed below.

Unitrust Insurance Co. Ltd vs. Ambico Sendirian Nigeria Ltd (2012) LPELR 15417 (CA)

per Pemu JCA had observed by the stipulations of Section 50 (1) of the Insurance Act, the payment of premium is not only a condition precedent, but that there shall be no cover in respect of an insurance risk unless the premium is paid in advance.

1. The receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk, unless the premium is paid in advance.
2. An insurance premium collected by an insurance broker in respect of an insurance business transacted through the insurance broker shall be deemed to be premium paid to the insurer involved in the transaction.

See also Shoreline Liftboats Nigeria Ltd & Ors vs. Premium Insurers Brokers Ltd & Ors (2012) LPELR 9795-(CA) wherein per Agbo

JCA: Industrial and General Insurance Company Ltd vs. Kechinyere Adogu (Mrs) (2009) LPELR- 15093 (CA) per Aji JCA