Claims-made policy covering legal liability to third parties for bodily injury or property damage arising out of gradual pollution. It also covers mandatory clean-up costs for both sudden and gradual pollution of the insured’s own and third party sites. Cover is sitespecific based on risk assessments. Multiple premises cover extends to product liability and work away risks. Some insurers reimburse voluntary costs incurred by the insured in taking emergency preventive action. Fixed premium policies can be written for up to five years. See CONTAMINATED LAND.

Aims to establish a framework whereby environmental damage will be prevented and restoration carried out. Environmental damage is widely defined and includes water pollution, land contamination that poses a threat to human health and biodiversity damage in areas protected by European and national legislation. The person causing the damage is liable for the restoration. Insurance is not compulsory, although the proposal requires member states to encourage operators to use insurance or other forms of financial security. The proposed directive covers activities such as releasing heavy metals into water or the air, installations producing dangerous chemicals, landfill sites and incineration plants.

Risk management approach to eliminate/control environmental risks. The systems should cover: organisational structure, responsibilities, pracresources for tices, processes and implementing and maintaining environmental management. Insurers underwriting environmental impairment liability cover look more favourably on companies with EMS.

Uses integrated pollution control to prevent pollution from emissions to air, land or water from scheduled processes. Authorisation to operate relevant processes must be obtained from the enforcing authority which for the more heavily polluting industries is HM Inspectorate of Pollution. Control of pollution to air from less heavily polluting processes is through the local authority. The regulations also place a duty of care on all those involved in the management of waste.

Equal treatment legislation (PA 95, s.62) came into force on 1 January 1996 following the Barber judgment. The main effect is that every occupational pension scheme will be treated as containing an equal treatment rule which will override any contrary provisions in the actual trust deed and rules of a scheme.

an amount set aside out of past or current underwriting profits to meet future underwriting losses, in particular losses arising from claims due to the occurrence of events of an exceptional nature, that is events not normally occurring every year.

The amount set aside to prevent exceptional fluctuations in the amounts charged to revenue in subsequent years in respect of claims of an exceptional or irregular nature (e.g. catastrophes). Amounts are added to the reserves in profitable years and released when losses are made.

A legal term referring to interests in property originally created and enforced by the Court of Chancery. Such an interest can arise in a number of ways such as where money has been advanced on property but no formal mortgage deed drawn up. The lender has an equitable interest and this creates an insurable interest. Similarly, a person on whose behalf property is held in trust has an insurable interest in that property.

Life insurance policies combining life insurance with investment in equities, i.e. ordinary shares. Life insurance is linked to equity investment either through an established unit trust or unitised fund administered by the life office itself. Usually a large part of the premium is invested in the unit trust or equity portfolio, the balance provides life cover, usually term insurance.