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Pro-Rata example- debt £30k Credit limit £25k monies recovered £10k - you work out what proportion of the debt was covered and then apply that percentage to any money recovered so in this case 25k div by 30k equals 83 percent so of the 10k recover, 83 percent would go to the insurer, let try another - debt 30k credit limit 15k monies recovered 15k so, 15k div by 30k equals 50 percent apply this to the money recoved - in this case half and therefore 7,500 would be allocated against the insured debt and 7,500 against the unisured debt (and opening a new account and continuing to trading on cash - without the consent of the insurer any such trading and money subsequently received is considered to be salvage money) at the end of the day the insurer is not looking for ways to get out of paying the debt, they are just taking a fair and reasonable approach, you can't expect them to bail you out if you have not taken "due care and prudence" to mitigate the debt.
So at the end of the day it is important to either have a credit limit to cover the debt or keep the account within the credit limit or at least be aware of the risk you run. (Not all salvage clauses run this way - one insurer runs a first in first out approach, although this doesn't always run in the favour of the policyholder - it can be very much case by case if you want specific examples and more information, please get in contact).