Voluntary contributions by pension scheme members to boost their eventual retirement income. Tax relief on AVCs is subject to the normal limits, but they cannot be commuted to a taxfree lump sum. AVCs are ‘in-house’, or set up as an FSAVC (free standing AVC) from a provider of the individual’s choice. See HEADROOM CHECK.

A clause applicable to certain aviation hull insurances under which the cover is automatically extended to include further aircraft owned or operated by the insured of the same type and value of the aircraft already insured.

At common law an employer must take reasonable care to provide adequate plant and machinery and see that it is properly maintained. This includes the provision of protective devices and clothing and, where appropriate, a warning or exhortation to use such equipment. The employer may also have to take account of any special disabilities of the workman (Paris v. Stepney B.C. (1951)). Under the Employers’ Liability (Defective Equipment) Act 1969 the employer is strictly liable for injury caused by a latent defect in a tool, even though the fault is that of the manufacturer. See PUWER.

A quasi-arbitration where a neutral adjudicator issues an award or decision, binding on the parties, unless unenforceable by the court or an arbitrator. The Housing, Grants, Construction and Regeneration Act 1996 provides a compulsory adjudication scheme in most construction contracts to resolve disputes on an interim basis, to minimise site delays. The adjudicator reaches a decision within 28 days of referral. The decision is binding unless the dispute is finally decided by agreement, or until, on occasions only, there is a fresh hearing by litigation or arbitration. Otherwise the court intervenes if the losing party refuses to honour the adjudicator’s decision. See ALTERNATIVE DISPUTE RESOLUTION.
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MEDICAL, US:

Process of the final determination of the issues involving settlement of an insurance claim as payable, partially payable, or denied; also known as claim settlement

Policies where, at inception, the insured estimates the size of the risk in terms of a key variable such as turnover or wages as in employers’ liability insurance. The premium is based on this estimate but adjusted up or down at the end of the year when the actual figure is declared by the insured. Any return made to the insured is subject to a minimum premium.

The cash equivalent transfer value, worked out in the prescribed manner (the Welfare Reform and Pensions Act 1999), to establish a member’s pensions rights on divorce. The CETV is a lump sum value in current terms of the rights accrued within a member’s pension scheme.

The initial indemnity limit under a reinsurance contract minus the losses paid during the current contract period. It is the amount of cover remaining unless reinstatement applies.

an independent professional individual who is engaged by insurers to settle large or complex claims.

An additional premium payable under the terms of the contract as a result of claims experienced under a policy of insurance or reinsurance.

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An additional or return premium that is payable in relation to a deposit premium depending on the performance of an insurance or reinsurance contract.

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The adjustment premium is a further premium payable at the end of a period of cover. This may result from the use of retrospective experience rating or from a situation where the exposure cannot be adequately determined at the start of the period of cover.

An Act compelling the courts to award interest on damages for personal injuries for the period from date of service of claim to the date of judgement at a standard rate. Interest is only awarded on those cases that proceed to court and payments into court should include interest.