Rates for Short Period Insurance: Policies for a period of less than 12

months shall be issued at the rates set out hereunder:

Short period rates:
For a period not exceeding 15 days 10% of the Annual rate

-do- 1 month 15% of the Annual rate

-do- 2 months 20% of the Annual rate

-do- 3 months 30% of the Annual rate

-do- 4 months 40% of the Annual rate

-do- 5 months 50% of the Annual rate

-do- 6 months 60% of the Annual rate

-do- 7 months 65% of the Annual rate

-do- 8 months 70% of the Annual rate

-do- 9 months 75% of the Annual rate

-do- 10 months 80% of the Annual rate

For a period exceeding 10 months The full Annual rate

N.B.: Extension of short period policy(ies) shall not be permitted..

CANCELLATION OF POLICY:
At insured’s option – Short period scale.
At Insurer’s option – Pro-rata.
Replacement of policy by new annual policy with same or higher S.I.- Pro-
rata

SILENT RISK:
Factories where no manufacturing / storage activities are carried out
continuously for 30 days or more.
Premium rate is lower than working rate.
The silent rates are not applicable if a risk goes silent following a loss under
the policy.

RATING OF RISKS IN MULTIPLE OCCUPANCIES

One of the principles of rating in fire insurance is that if risks with different
degrees of fire hazards are close to one another then the higher hazard risk
may cause spread of fire to other risks close by. Hence this factor should be
considered while rating a risk. For simplification the tariff has allowed per
se rating for contents of each insured as per their occupancy.