Cap. 13 Art. 386Where voyage is abandoned before commencement of risk.

(1) If the voyage is abandoned, even though by the act of the assured, before the insurer has begun to run the risk, the insurance becomes void, and the assured is not bound to pay the premium, or, in case he has paid it, he shall be entitled to demand from the insurer the repayment thereof.

(2) The insurer, however, shall receive, by way of compensation, one half per centum on the sum insured, or one half of the premium, if the whole premium does not amount to one per cent.