Proportionate reductionU.K.
11(1)If this paragraph applies, the insurer may reduce proportionately the amount to be paid on a claim arising out of events after the variation.U.K.
(2)In sub-paragraph (1), “reduce proportionately” means that the insurer need pay on the claim only Y% of what it would otherwise have been under an obligation to pay under the terms of the contract (whether on the original terms, or as varied, or under the different terms provided for by virtue of paragraph 9(3)(a) or 10(3)(a), as the case may be), where—
(3)In the formula in sub-paragraph (2), “P”—
(a)in a paragraph 9(3)(b) case, is the total premium the insurer would have charged,
(b)in a paragraph 10(2) case, is the original premium,
(c)in a paragraph 10(3)(b) case, is the original premium if the insurer would not have changed it, and otherwise the increased or (as the case may be) reduced total premium the insurer would have charged.