What is a short period rate?
It is a type of method to calculate the penalty amount for cancelling a policy before its due date. A short period rate cancellation method allows the insurer to retain unearned premium (UEP) that is more than what is done in pro rata cancellation method. Therefore, it acts as a disincentive for the insured to cancel a policy before it expires.
- What is the amount for which I need to insure my commercial vehicle? How is IDV connected to the amount needed to insure vehicle?
- What kind of risks is covered by IFFCO Tokio third party policy?
- Consequences if I forget to renew my commercial auto insurance on time
- Can I renew my commercial vehicle insurance with IFFCO Tokio?
- What is a No Claim Bonus?