Avoidable Consequences

Consequences that are caused by lace of care on part of an individual, and that could have been avoided had the individual exercised proper care. Generally refers to events that occur following a loss as the result of a person’s failure to take steps to prevent the consequences.

Avoidance

(i) A right which can be exercised by an underwriter to relieve him of liability under the Policy because the assured has been guilty of a breach of good faith or where the risk in a voyage Policy has failed to attach within a reasonable time after the underwriter wrote the risk. (ii) Never having the exposure or abandoning an exposure that is acquired earlier. (iii) A risk management technique that often is not feasible because it keeps one from engaging in a desired activity. Award : The decision in Court of Law or Arbitration.

Avoidance of certain terms and rights of recovery

Clause in motor insurance and employers’ liability policies compulsory insurances (Road Traffic Act and Employers’ Liability (Compulsory Insurance) Act 1969). The legislation restricts the right of insurers to rely upon breaches of certain policy conditions to avoid a claim. The conditions mainly relate to matters that should or should not be done by the insured after the event, e.g. giving proper notice and not admitting liability. The insurer is entitled to recover his loss from the insured where payment is made solely because of the legislation. See APPROVED POLICY; PROHIBITED CONDITIONS.