Marine Insurance Refund and Return Policy
1. General Principles
- Policy Coverage: Marine insurance covers the loss or damage of ships, cargo, and other marine-related risks. The refund and return policy applies to the premium paid and may be subject to the terms and conditions outlined in the policy contract.
- Non-Refundable Premiums: In most cases, marine insurance premiums are non-refundable once the policy has been issued, especially if coverage has already commenced. However, exceptions may apply based on the policy terms and conditions.
2. Cancellation Policy
- Cancellation by the Policyholder:
-
-
- Before Coverage Commences: If the policyholder cancels the policy before the coverage starts, they may be entitled to a partial refund of the premium, less any administrative fees or charges specified in the policy.
- After Coverage Commences: If the policyholder cancels after coverage has started, refunds may be limited or not available, depending on the policy’s terms. Any premium refund may be subject to a short-rate cancellation charge.
-
- Cancellation by the Policyholder:
-
-
- For Non-Payment: If the insurer cancels the policy due to non-payment of premiums, a pro-rata refund may be issued for the unearned portion of the premium.
- For Misrepresentation or Fraud: If the policy is canceled due to misrepresentation or fraud, no refund may be provided.
-
3. Return of Premium
- Pro-Rata Return: If the policy is canceled mid-term and the insurer is liable to return any premium, it is typically calculated on a pro-rata basis for the unused portion of the coverage period.
- Short-Rate Return: If the policyholder cancels the policy before its expiration, a short-rate return may be applied, meaning the policyholder might receive less than the pro-rata amount due to administrative charges.
4. Special Circumstances
- Errors and Omissions: In cases where there has been an error or omission in the policy issuance, the insurer may offer a refund or adjustment as deemed appropriate.
- Legal Requirements: The refund and return policy may be subject to local laws and regulations, which could influence the terms and conditions applied.