Page 169 - Motor Insurance Ebook IC 72

Guide for Motor Insurance

reported, no refund of premium should allowed. A
pro-rata refund subject to minimum premium being
retained can be made if the vehicle has been insured
continuously for at least 12 months preceding the
date of cancellation under a policy in the name of
the policy holder.

If the policy has been in force for less than a year,
the refund should be on short period basis subject
to minimum premium being retained. The Insurer
should inform the R.T.O. by registered A.D. post
about the cancellations of the insurance. Cancellation
can be effected only on proof of the vehicle being
insured elsewhere.

3) Double insurance - In case of double insurance the
insurers or insured may cancel one of the policies. In
that case refund should be granted on pro-rata basis
and not on short period basis for the period both the
policies are in force concurrently. Insured may
exercise the option of getting the subsequent policy
cancelled and get the refund of premium.

Q 5. Write notes on: a) The cover note b) Cancellation
of Certificate of Insurance c) Lost, Destroyed or
Mutilated Certificates

Ans. a) Cover note - The cover note is issued pending

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