Condition, other than one relating to loss of sight or limb, that attracts a lump sum benefit payable when the insured is unable to follow any occupation or gainful employment. Some policies allow the PTD benefit if the insured’s disablement prevents him from following his normal occupation not any occupation (e.g. injured ex-footballer becomes journalist).
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Permanent Total for Disablement
As a result of the accident the person is permanently and totally disabled. This means that the person is practically reduced to mere mass of flesh. In case of loss of sight the same must be total and irrecoverable hence blind for all practical purposes does not satisfy the definition, but claims are admissible if vision has become so impaired that it is impossible to recognize objects, although the difference between darkness and light can be distinguished. As regards loss of limbs loss of hand and/or foot physical separation at or above the wrist or ankle satisfies the policy requirements. It is not only an amputation or loss of limb, even loss of use of limb consequent upon an accident is as good as actual loss of limb. The provision is applicable when the insured is permanently unable to engage in or attend to his usual business or attend to any business of any kind.
Permissible (Expected) Loss Ratio
The maximum percentage of premium income that can be expended by the company to pay claims without loss of profit.
Permissible User
Person (not otherwise an insured under a policy) who has an insured’s explicit or implied permission to use an insured automobile equipment or other insured property. Permissive user status makes the permitee an insured for most purposes under the permitor’s Policy.
Permit bond
A bond that guarantees a person who has been issued a permit will comply with any laws and ordinances in which the permit was issued.
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A bond which guarantees that a person who has been issued a permit will comply with the law and ordinances regulating the privilege for which the permit was issued. A house movers Permit Bond is an example.
Permit bond (Surety)
A bond that promises the person issued a permit will follow the laws that govern the activity for which the permit was issued.
Permit Bonds
A type of bond guaranteeing that the person to whom a permit is or is to be issued will comply with the law ordinance regulating the privilege for which the permit is issued.
Permitted investments
Types of investments that pension trustees operating under trust deed rules are permitted to make. See TRUSTEE ACT 2001.
Permitted maximum
The legal name for the earnings cap.
Perpetual insurance
Fire insurance method under which the insured pays a deposit in a lump sum or in instalments based on a percentage of the value of the property at risk. The insurer invests the sum paid in order to accrue interest from which claims will be paid. The insured can end the arrangement by withdrawing his deposit.
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Property Insurance (usually covering Fire and extended coverage perils) under which the insured, rather than paying periodic premiums, deposits a sum large enough that the investment earnings on this deposit can pay insured losses plus the insurer’s operating expenses. This deposit and its investment earnings, minus loss payments and Underwriting expenses, is held in the insured’s name. The insured is entitled to the balance of this account upon withdrawing from the perpetual Insurance arrangement.