# Research article: the premium as the policyholder's main duty URL: https://insurancelawestonia.ee/blog/2010-07-01-research-premium-payment-obligation/ Author: Dr Olavi-Jüri Luik, Partner, Head of Insurance Law, attorney at law (Advokaadibüroo WIDEN OÜ) Last updated: 2026-11-09 > Luik and Haavasalu, Juridica 2010/3: premium payment in Estonian non-life insurance and the consequences of late or non-payment. > **Article (in Estonian):** O.-J. Luik, K. Haavasalu, "Kindlustusmakse tasumise kohustus kui kindlustusvõtja põhikohustus kahjukindlustuses" (The duty to pay the premium as the policyholder's main obligation in non-life insurance), Juridica 2010/3, pp. 184–195. [Article page on Juridica](https://www.juridica.ee/juridica_et.php?document=et/articles/2010/3/178332.SUM.php) (published 2010) Co-author: Karl Haavasalu. ## Research question The insurance contract is bilateral: the policyholder must pay premiums and the insurer must indemnify when the risk materialises (Law of Obligations Act (võlaõigusseadus, VÕS) § 422(1)). The article addresses practical questions: how premiums are paid, what happens if the policyholder pays late, pays less or does not pay, who may collect premiums, and who must send the statutory notices and how. ## Main arguments The article analyses the premium obligation in non-life insurance and the legal consequences of improper payment, distinguishing late first and subsequent premiums and the insurer's options of withdrawal, termination or release from performance. ## Relevance for insurers The basic scheme still applies. If the first premium is not paid within 14 days of conclusion, the insurer may withdraw from the contract until payment (VÕS § 457(1)). For a late subsequent premium, an insurer that wishes to rely on the delay must set, in a form reproducible in writing, an additional period of at least two weeks, or at least one month where a building is insured, and the notice must state the legal consequences of the expiry of that period (VÕS § 458(1)). The Supreme Court has stressed that these provisions cannot be varied to the policyholder's detriment and that the insurer must notify, invoice and warn the policyholder before cover ends.[^1] ## Related pages - [Premium](https://insurancelawestonia.ee/estonian-insurance-contract-law/premium) - [Supreme Court: premium](https://insurancelawestonia.ee/supreme-court/premium) ## References [^1]: Supreme Court Civil Chamber judgment of 16.05.2006, 3-2-1-51-06, para 13.