Retirement benefits scheme approved by the IR under ICTA 1988, Chapter I, Part XIV, including an FSAVC scheme. The term also applies to personal pension schemes or occupational pension schemes approved under Chapter IV. Approval is given when the scheme is: established under an irrevocable trust; the administrator and the company are in the UK; the employer pays at least 10 per cent of total contributions; contributions and benefits are within IR limits; cash commutation must not exceed three-eightieths of the final remuneration for each year of service; the maximum retirement benefit cannot exceed the one-sixtieth accrual rate; the eligible employees must be given written notice of the scheme’s terms and conditions. The strict conditions cause most employers to seek the greater flexibility of exempt approved schemes.

A vessel deemed adequate to carry the insured cargo at the agreed rate of premium. In the American market a cargo-carrying vessel over 1,000 net registered tons and under 20 years of age is approved by insurers to carry cargo without additional premium. The London market uses a different standard. Where the vessel is not approved, the risk is held covered (H/C) subject to payment of an additional premium.

Financial transaction involving the simultaneous purchase and sale of identical or equivalent financial instruments in different markets in order to profit from price differences. Per-transaction profit is small but financial institutions such as banks and (re)insurers enter into large transactions at relatively low costs.

These fees are covered when relating to insured property damage either by making due allowance in the sum insured or by a special item. The fees are payable for plans, specifications, etc., and general supervision of rebuilding in the event of fire or other insured perils. Increasing the buildings sum insured by 12.5 per cent and the machinery sum insured by 7.5 per cent often provides cover, but insureds with very large sums insured may insure the fees on a first loss basis. Fees paid by the insured for preparing the claim are not covered.

Covers loss of customers’ money carried in armoured cars and physical loss or damage to customers’ property whilst on insured premises, in transit, on a pavement or at an automatic telling machine. Underwriting and rating takes account of: premises to be insured; company’s history; five-year loss history; number of armoured vehicles; physical security measures applied to vehicles and premises; annual revenue figures; estimated value of cash to be carried during year.

Marine term describing a settlement agreed between the insurer and the insured where the cost of carrying out repairs is uneconomical nothwithstanding that the cost is less than the full insured value. When appropriate the principle is also adopted in other forms of property insurance.

A regulated activity order which means making arrangements for another person (as principal or agent) to buy, sell, subscribe for or underwrite a particular investment which is: a designated investment, funeral plan contract, underwriting capacity of a Lloyd’s syndicate, a pure protection contract, general insurance contract or rights to or interests in particular investment categories.

Defined in the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 as ‘arranging for a person to enter a particular insurance contract with an insurer [and] making arrangements with a view to another person, who takes part in these arrangements, buying an unspecified insurance contract’. ‘Arranging insurance’ is distinguished from introducing insurance. The FSA decides case by case what constitutes ‘introducing? Those who arrange insurance will be regulated by the FSA in 2005. See INTRODUCER APPOINTED REPRESENTATIVES.

Arrests, restraints and detainments of all kings, princes and people, of what nation, condition, or quality whatsoever’ are defined in the Rule for Construction of the Policy (No. 10) as referring to political or executive acts, and not including a loss caused by riot or by ordinary judicial process. As goods were held to be lost when they could not be forwarded to their destination because of these perils (e.g. siege of a city), insurers introduced the frustration clause, the effect of which is to relieve the insurer of liability for a claim based on ‘arrests’ etc.

A note on a report or claim to indicate that the vessel has completed the voyage or partvoyage, or cargo has reached its destination after the transit covered by the policy. Sometimes the term is used colloquially to refer to the successful completion, with no loss or claim, of a non-marine cover.