A statutory claim (Employment Rights Act 1996) entitling eligible employees to a compensation award by a tribunal. Dismissal is unfair if the employer fails to bring it within one of five permitted reasons: viz; conduct; capability; redundancy; illegality; or some other substantial reason. Employers can insure under Employment Practices Liability Insurance. Compare with wrongful dismissal.

Stipulates that a term which has not been individually negotiated in a consumer contract is unfair if it causes a significant imbalance in the rights and obligations of the parties to the consumer’s detriment. The Director General of Fair Trading must consider any complaint made to him about the fairness of any contract term drawn up for general use The Regulations apply generally and so affect all insurance contracts with private individuals, but terms defining the product are not covered. This means that an insurer can limit the cover by including an excess. Other insurance terms may be deemed unfair.

A pay as you go’ pension scheme that does not acquire and build up assets to fund the pension. State pensions are unfunded.

Pension arrangement for which IR approval is not sought and under which there is no pre-funding. The employer provides benefits out of income for employees earning more than the earnings cap. See FUNDED UNAPPROVED RETIREMENT BENEFITS (FURBS).

The method of determining benefits for early leavers under the terms of the ‘preservation’ conditions of social security legislation. Retirement benefits are treated as being earned equally over the period of potential pensionable service to normal pension date.

A risk that cannot be insured because an essential condition is not present. It may: (a) lack insurable interest; (b) defy quantification; (c) entail widespread losses (e.g. war damage to property on land); (d) create excessive cost; (e) be speculative; (f) may reflect certainty rather than uncertainty; (h) be contrary to public policy.
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An uninsurable risk is one that is literally uninsurable because loss is certain rather than possible.
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An uninsurable risk is one which is literally uninsurable because loss is certain rather than possible.

Drivers not covered by third party insurance as required by the Road Traffic Act 1988. Their injured victims can secure compensation under the Uninsured Driver Agreement 1999. The Third Motor Insurance Directive 90/232 requires the victim to bear the first £175 of property damage, but there is no recovery for a person who knowingly enters an uninsured or stolen vehicle.

Agreement between the Motor Insurers Bureau and the government whereby the MIB compensates the victims of negligent uninsured drivers who had no insurance or only defective insurance. In the latter instance the vehicle insurer deals with the victim’s claim but has a right of recovery against the negligent motorist. See UNTRACED DRIVERS AGREEMENT.

Losses not covered by a first party insurance such as an accidental damage excess under a comprehensive car insurance and cost of hiring an alternative car. The losses may be recoverable from a negligent third party.