Page 119 - Fire Insurance Ebook IC 57

The Insurance Times

For a period not exceeding 5 months 60% of the annual rate

For a period not exceeding 6 months 70% of the annual rate
For a period not exceeding 7 months 75% of the annual rate

For a period not exceeding 8 months 80% of the annual rate

For a period not exceeding 9 months 85% of the annual rate

For a period exceeding 9 months The full annual rate

Extension of short period policies is not permitted.

Cancellation of policies

If insurance is cancelled at the option of
-the Insured - retention of premium shall be at short period scale.
-the Insurer - refund of premium shall be on pro-rata basis.

Pro-rata refund of premium may be allowed if a policy is
cancelled

on account of a Government order, or on completion of a" Building in
course of construction, or where building is demolished.

Mid-term cover

Usually, it is not permissible to grant mid-term cover for STF1 and / or
RSMTD perils.

However, where such covers are granted mid-term, the
following provisions shall apply :

n Insurers must receive specific advice from the insured accompanied
by payment of additional premium.

n Cover shall commence 15 days after the receipt of premium.

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