Article 12 (Return of premium-cancellation of insurance)
1. When the Company cancels the insurance for the reason of the fact mentioned in paragraph 3 of Article 6 or paragraph 2 of Article 7 the Company shall return the balance of the premium after deducting there from the portion for expired period calculated at the Company’s short period rate.
2. If the insurance is cancelled due to a reason imputable to the company the premium shall be returned calculated pro rata for unexpired period.
3. In case the insurance for a period more than one year is cancelled, provision of foregoing two paragraph shall apply with respect to the premium for the policy year to which belongs the date of cancellation and full premium shall be returned with respect to the premium for subsequent policy year or years.