UK: 1. An amount retained as reasonably necessary to provide for asset depreciation, or any liability or loss which is likely to be incurred. 2. In a pensions context, the unfunded obligation to provide employees’ pensions and shortfall of funding payments over the amount calculated by the actuary as being his estimate of the costs of providing pensions. Pensions costs in employers’ accounts should be actuarially assessed and included in the employer’s balance sheet under ‘provisions for liabilities’ as ‘pensions and other similar obligations. 3. Term in a policy, contract or statute.
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MEDICAL,USA: Section of an insurance contract describing in detail a benefit, condition, feature, or requirement of the policy. Also called clause , insurance clause, or insurance provision.
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UK,REFERENCE: See: reserve.