1. The rules governing the interpretation of a policy which include the contra proferentem rule, the ordinary meaning rule, the ejusdem generis rule, the whole policy rule, the technical words rule and the written words prevail rule. 2. The First Schedule of the Marine Insurance Act 1906 contains the Rules for the Construction of the Policy.
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A Policy of Insurance is to be constructed like any other contract, it is to be constructed in the first place from the terms used in it, which terms are themselves to be understood in their primary sense. The meaning of a word in a Policy is that which an ordinary man of normal intelligence would place upon it, and understandable by ordinary persons.

Protects project owners against the risk of the ultimate cost of construction exceeding the original price and contingency allowances. Policy wordings are customer and contract specific.

1. Institute Cargo Clauses 1/1/82 provide that no constructive total loss claim will be recoverable unless an actual total loss appears unavoidable, or because costs of recovering the property and forwarding it to its destination would exceed its value on arrival. 2. International Hull Clauses 01/11/02 permits the insured to claim a constructive total loss if the repair costs exceed 80 per cent of the repaired value, i.e. insured value, of the property. This makes it easier for the insured to establish a constructive total loss but nothing obliges the insurer to accept the insured’s notice of abandonment. See ABANDONMENT.

Provides a uniform system of controlling all forms of credit supplied to individuals (including sole traders and partners). Controls lending through licensing and also controls individual credit agreements. Policy loans, ‘topping up loans’ and house purchase loans are within the Act.

Often an extension in household policies covers the insured and his family in respect of legal expenses involved in taking or defending legal action in a range of civil disputes (personal injury/personal goods; consumer protection; residential; employment; tax) up to £50,000. Defending certain criminal proceedings, e.g. motoring offences, may also be covered. Motoring prosecutions are also covered under motor legal expenses policies.

Part I imposes strict liability on producers (manufacturers, raw material suppliers, importers being first importers into the EC, ‘own branders’ and ‘forgetful suppliers’, e.g. a retailer who fails to supply the identity of the producer) for defective goods that cause personal injury and damage to private property over £275. Section 4 sets out six defences to strict liability, notably the ‘state of the art’ defence. Part II has been largely superseded by the General Product Safety Regulations 1994 under which safety is assessed by factors such as relevant British or European standards. A breach is a criminal offence; product liability insurance covers prosecution defence costs.

A sale when the person buying ‘deals as a consumer’ with a business. Exclusion clauses of the implied terms of fitness for purpose and satisfactory quality are not permitted (Unfair Contract Terms Act 1977). The Unfair Contract Terms Act 1977, s.12: a person deals as a consumer if (a) he neither makes the contract in the course of business nor holds himself out as doing so; and (b) the other party makes the contract in the course of business; and (c) the goods are of a type ordinarily supplied for private use or consumption.

Rectangular metal boxes used to transport cargo between two or more modes of transit, i.e. road vehicle, train, vessel or aircraft. The containers themselves are insured under the Institute Container Clauses.

Land appearing to the local authority to be ‘in such a condition, by reasons of substances in, or under the land, that significant harm is being caused or there is a significant possibility of such harm being caused’ (Environment Act 1995, s.57). See POLLUTER PAYS PRINCIPLE.