Short-Rate Cancellation

Short-Rate Cancellation is a way of determining the refund amount that an insured will receive if they cancel their insurance policy before the expiry date. Short-rate cancellation calculation includes a penalty as a disincentive for early cancellation. Check the policy Terms and Conditions to see if Short-Rate Cancellation applies.
See also Pro-Rata Cancellation.
Read an article: Pro-rata vs short-rate cancellation.