An insurance premium is a sum of money paid in return for the → Insurance cover to a → Insurer is paid. The insurance premium is determined in terms of its amount, frequency and due date, in the → Insurance certificate shown. If the → policyholder If payments are made at intervals during the year (half-yearly, quarterly, monthly), it is customary for the → Insurer requires an additional charge to compensate for interest. Insurance premiums must generally be paid in advance.

A distinction is made between the net insurance premium (excluding → Insurance tax) and the gross insurance premium (including → Insurance tax). The latter is also the contribution amount.

Source reference: See the VDT publication “VDT Article Series, Part 5 | Glossary“ and the source cited there.