Cancellation is termination of an insurance policy before its scheduled expiry under the relevant contractual and legal rules. Either party may have defined cancellation rights, notice duties, and refund conditions. It differs from policy lapse caused by failure to satisfy ongoing requirements.
A Nepalese policyholder should request a written effective date and refund calculation before assuming cancellation is complete. Some products use surrender value rather than a simple unused-premium refund. Check whether cancellation affects loan obligations, compulsory cover, or ongoing protection needed by dependants.