Pro Rata Cancellation

What is Pro Rata Cancellation?

Pro Rata Cancellation is This term refers to the proportion of premium refunded to an Insured in the event of cancellation of the policy prior to expiry. A pro rata refund is the amount of premium to be refunded to the Insured after deducting the premium due to the insurer, calculated according to the period of time the insurer was on risk plus any cancellation allowances that the policy wording may invoke for a mid term cancellation.


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