Malaysia Insurance Law - Property Insurance Law - Customary Short-Period Rate

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INSURANCE LAW - Property Insurance

Related Topics : Auto Insurance . Business Insurance . Disability Insurance . Health Insurance . Insurer's Bad Faith . Life Insurance Law . Property Insurance

Customary Short-Period Rate

Canceling Insurance Policy Midway

If you cancel your policy midway, your insurers would retain the premium paid for the period of insurance "used-up" (subject to a minimum premium of RM50) and refund you the balance calculated according to the following scale :

not exceeding 15 days : 90% of annual premium refunded;
not exceeding 1 month : 80% of annual premium refunded;
not exceeding 2 months : 70% of annual premium refunded;
not exceeding 3 months : 60% of annual premium refunded;
not exceeding 4 months : 50% of annual premium refunded;
not exceeding 5 months : 40% of annual premium refunded;
not exceeding 6 months : 30% of annual premium refunded;
not exceeding 7 months : 25% of annual premium refunded;
not exceeding 8 months : 20% of annual premium refunded;
not exceeding 9 months : 15% of annual premium refunded;
not exceeding 10 months : 10% of annual premium refunded;
not exceeding 11 months : 70% of annual premium refunded;

For example, if your annual premium is RM800 and you cancel your policy after 5 months of cover, you will be entitled to a refund of 30% of your annual premium or RM240.

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