Payment by the policy­holder for the insurance cover. A distinction is made between first premium and subse­quent premium.

Initial premium: Premium where the payment brings the insurance cover into effect, unless provi­sional cover has been granted or retroactive cover has been agreed (material commencement of insurance). If the initial premium is not paid on time, the Insurer is released from the oblig­ation to pay benefits upon occur­rence of an insured event and is entitled to withdraw from the contract. However, this requires that the policy­holder is

respon­sible for the non-payment. This also applies to the single premium.

Subse­quent premium: Premium for an insurance that is due after the initial premium. If a subse­quent premium is not paid on time, the insurer may set a payment deadline for the policy­holder at the policy­holder’s expense, stating the legal conse­quences.