1. An employers’ liability policy that does not contain prohibited conditions, i.e. certain conditions allowing an insurer to repudiate a claim. This does not preclude a condition allowing the insurer to reclaim from any employer any amounts paid by the insurer following injury to an employee when a condition, otherwise prohibited, has been breached. The prohibited conditions are set out in the Employers’ Liability (Compulsory Insurance) Regulations 1998. 2. The term is also used in contracts that impose an obligation to insure one of the parties to the effect that the policy has to be approved by the party imposing the obligation.

Motor vehicle garages listed by motor insurers as having been approved by them for the purpose of repairing damage. The insurer secures improved terms and streamlines its administrative procedures in return.

Retirement benefits scheme approved by the IR under ICTA 1988, Chapter I, Part XIV, including an FSAVC scheme. The term also applies to personal pension schemes or occupational pension schemes approved under Chapter IV. Approval is given when the scheme is: established under an irrevocable trust; the administrator and the company are in the UK; the employer pays at least 10 per cent of total contributions; contributions and benefits are within IR limits; cash commutation must not exceed three-eightieths of the final remuneration for each year of service; the maximum retirement benefit cannot exceed the one-sixtieth accrual rate; the eligible employees must be given written notice of the scheme’s terms and conditions. The strict conditions cause most employers to seek the greater flexibility of exempt approved schemes.

A vessel deemed adequate to carry the insured cargo at the agreed rate of premium. In the American market a cargo-carrying vessel over 1,000 net registered tons and under 20 years of age is approved by insurers to carry cargo without additional premium. The London market uses a different standard. Where the vessel is not approved, the risk is held covered (H/C) subject to payment of an additional premium.