Pro-rata Cancellation

Pro-rata Cancellation is a way of determining the refund amount that an insured will receive if their insurance policy is cancelled before the expiry date. The Pro-rata cancellation calculation is based on the remaining length of the policy. Check the policy Terms and Conditions to see if Pro-rata Cancellation applies.
See also Short Rate Cancellation.
Read an article: Pro-rata vs short-rate cancellation.