35. Liability of insurer under policies of general insurance

An insurer shall not be liable to pay any amount due under any contract or policy of insurance effected or issued by such insurer in respect of insurance business other than life assurance business, unless —

the full premia due under such contract or policy on the date on which such amount becomes payable, has been paid ; or

a bank guarantee for the payment of such premia has been furnished by the insured or broker on the date on which such amount became payable and the insured or broker pays such premia within such period of time as may be determined by the Board.