diff --git a/modules/Contacts/ContactsHandler.php b/modules/Contacts/ContactsHandler.php
index 6c0c36d1d433e9dda176a67f40c41b7f2c559e2b..cb3cab11922da5fb768bc080daf764d7d95fb4c7 100644
--- a/modules/Contacts/ContactsHandler.php
+++ b/modules/Contacts/ContactsHandler.php
@@ -25,7 +25,7 @@ function Contacts_sendCustomerPortalLoginDetails($entityData){
 		$sql = "SELECT id, user_name, user_password, isactive FROM vtiger_portalinfo WHERE id=?";
 		$result = $adb->pquery($sql, array($entityId));
 
-		$insert = true;
+		$insert = true; $update = false;
 		if ($adb->num_rows($result)) {
 			$insert = false;
 			$dbusername = $adb->query_result($result,0,'user_name');