An expanded single insurance market by combining the EC with the European Free Trade Area subject only to the exclusion of Switzerland. EFTA take part on the basis of all three generations of Insurance Directives. Switzerland takes part only in connection with the first two generations. This gives Switzerland access to the EC’s non-life market with EC insurers gaining reciprocal access to the Swiss non-life market.
***
The member states of the European Union plus Norway, Iceland and Liechtenstein.

Formed in 1960 and consisting of Iceland, Norway, Switzerland and (from 1991) Liechtenstein. There are no import duties between members. Former members, Britain, Denmark, Portugal, Finland, and Sweden, left to join the EC. The EC and EFTA set up a combined free trade area in 1972. A further pact created the European Economic Area in 1994.

without legal obligation.

A claims payment made by the insurer ‘as of favour’ even though there is no legal obligation to pay. Such payments are made to preserve goodwill or where the right to refuse payment is founded only on a technicality.
***
Latin for “from favour.” A payment by an insurer to an insured for which there is no liability under the contract. In some cases an insurer may feel that there has been a mistake or a misunderstanding, and he may pay a claim even though he does not appear to be liable. See Also: “Claims types of Ex-gratia Payment.”

‘An action does not arise from a base cause. The rule prevents a criminal from recovering under a liability policy for injury or damage that otherwise would be within the policy. However, in Hardy v. Motor Insurers Bureau (1964), the claimant, through a right conferred by the Road Traffic Act, had a direct right of action against the insurer. Recoveries can also be made for mere acts of negligence even though criminal.

Benefits/contributions that are not subject to the rules applicable to protected rights benefits and contributions. They are provided by contributions to contracted out money purchase pension scheme or appropriate personal pension plan that are in excess of the level needed to secure protected rights benefits.

A collective fidelity guarantee insurance to provide additional cover on a floating basis to supplement the specified sums insured in respect of the individual employees.

Insurance to cover the excess amount of liability for general average contributions, salvage charges, sue and labour charges and three-fourths collision liability where the full amount is not covered by a hull policy. It overcomes the problem of under-insurance and the rateable reduction in an insurer’s liability consequent upon a rise in value of the hull owing to a rise in tonnage values upon general average is assessed.