A goods in transit policy warranted that vehicles would be in ‘locked garages at night’, except when employed on night journeys, but then never left unattended (A. Cohen & Co. Ltd v. Plaistow Transport Ltd (Graham, Third Party) (1968)). McKenna J. stated, obiter, that night should be construed by reference to lighting up time.
Tag: RAW
Night risk clause
Goods in transit clause to warrant that vehicles left loaded overnight must not be unattended unless locked and immobilised in accordance with any such provision in the policy. It may also be required that such vehicles be left either in a building or yard, which is also securely closed and locked, or in an attended official car park. See NIGHT.
Nil certificate
Certifies that a transfer value is not to be used to provide retirement benefits in lump sum form, such as on a transfer from an FSAVC scheme.
Nil Claim
A claim that results in no payment by the insurer, e.g., because the claim is found not be valid, or because the amount of the loss turns out to be no greater than the excess, or because the policyholder has reported a claim in order to comply with the conditions of the policy but has elected to meet the cost in order to preserve and entitlement to no claim discount.
Nil Depreciation Riders for Motor Insurance
Depreciation will not be deducted for replacement of parts for partial loss claims (TL/CTL will be settled on the basis of IDV). The cover is provided for up to 3 years of private cars and two wheelers
Nine-Months Rule
A contract signature rule adopted by the National Association of Insurance Commissioners generally imposing a nine-month time limit from the effective date of the treaty reinsurance agreement to the time when the treaty reinsurance contract must be actually executed by the ceding company and the reinsurer or, in the case of multiple reinsurers, the lead designated reinsurer. The rule enables the ceding company to comply with statutory and/or regulatory requirements and receive accounting treatment as prospective, as opposed to retroactive reinsurance.
Ninety-Day Rule
An account balance aging rule established by the National Association of Insurance Commissioners that provides that an insurer or reinsurer must age certain balances on Schedule F of the annual statement for reinsurance recoverables over ninety days past due for which the company may need to establish an uncollectible provision.
Nipple leakage
Leakage through the failure of the nipple joints of boiler or pressure plant. The cost of repair can be covered as an extension to a boiler and pressure plant policy. The extension covers ‘self damage’ only. Damage consequent upon the leakage is not covered as separate water damage cover is available under burst pipes cover. See ADDITIONAL PERILS.