Return of premium

It follows from Cl. 6-5 that the assured may demand a reduction in the premium if the insurance period is shorter than agreed or if the insurance has not been in effect for a period of time. The reduction in the premium shall correspond to the reduction of the insurance period.

Furthermore, pursuant to Cl. 6-6, the assured may request a reduction in the premium when the vessel is laid-up or in similar circumstances. The condition is that the vessel must be laying at one location for an uninterrupted period of at least 30 days with no cargo on board. The period is to be calculated as 30 calendar days and neither the date of arrival nor the date of departure from lay-up is to be included in the calculation of such period. It should be noted that, as per Cl. 6-6, sub-clause 1, this provision does not give a right to a reduction in the premium, but rather a right to demand negotiations for such reduction. 

Finally, it follows from Cl. 6-7 that a claim for reduction in premium is to be made within six months of the expiry of the insurance year or within six months after the expiry of the insurance period if this is shorter than one year.