How premium for MTA is calculated?

[Vivek]

If possible, could you pls explain with the help of an example.

Thanks again,

Vivek

[CONFUSED]

Example -
Policy Start Date 01/07/2010 to 30/06/2011
Mid term change dated 1/4/2010
Divided the total policy period in two parts -
- 01/07/2010 t0 31/12/2010
- 01/01/2011 t0 30/06/2011 (effective part due to MTA)

Annual Premium = 7500
Transaction Premium = [7500 * (91/365)] - [5000 * (91/365)]
= 1869.86 - 1246.58
= 623.28
Due Premium = 3719.17 + 623.28 = 4342.46

[Vivek]

Thanks Confused.