Legal Question in Banking Law in

For insurance premium cheque bounce, is it mandatory for an Insurance company to represent the cheque in case of receiving a customer request or representation is purely based on the internal process of the company. Can the insurance company put a seal on the cheque as "Cancelled and not to be presented again" to restrict representation and misuse as per their internal process.


Asked on 3/02/11, 9:31 pm

1 Answer from Attorneys
J. Radhakrishnan independent Practice

It is not mandatory for any holder/payee of a cheque whether he/it is an individual or company to present the cheque again once it has been dishonoured. The Insurance company cannot be faulted in law in branding a returned cheque the way you have mentioned. It is for the customer t o send a cheque in lieu of the bounced cheque if that can be honoured by his bank.

Read more
Answered on 3/03/11, 6:07 am


Related Questions & Answers

More Banking Law questions and answers in