Cover sometimes added to motor insurance whereby the insurer recovers vehicles from the scene of a breakdown as distinct from the scene of an accident. Recovery following an accident is an integral part of the cover under comprehensive motor policies. Extended warranty insurances often include breakdown recovery.

Boilers, pressure vessels, cranes, lifts and other lifting equipment, engines, electrical equipment may be insured against breakdown under the engineering policy. Breakdown generally means the breaking or burning of any part of the plant while it is running that causes a sudden stoppage that necessitates repair before resuming work although there may be specific definitions for particular forms of plant. Basic breakdown cover relates to self-damage, but cover is usually extended to damage to surrounding property, public liability, fragmentation, consequential loss, hired-in plant damage and deterioration of stock.

An additional pension taken from a pension scheme to ‘bridge’ the gap between actual retirement and state pensionable age at which time it is replaced by the state pension so there is no loss of income.

The body that set up the pool of insurers to cover nuclear perils.

Represents 2,000 brokerage members, representing 37,000 employees. Its interests cover home, motor, travel and the commercial and industrial insurance markets. It aims to enhance the status and recognition of members through the maintenance of high standards, public relations, government and parliamentary contacts. (www.biba.org. uk).

Brings together members from insurers, brokers, other intermediaries, academics, solicitors and barristers, all interested in insurance law. BILA holds regular talks and conferences on insurance law topics. It produces technical papers for various bodies including the UK government and the Law Reform Commission. It has initiated many changes to the world of insurance. BILA is also the British Chapter of Association International de Droit des Assurances (AIDA) and is an active participant in its quadrennial world congress.

The organisation which coordinates the various sectors of the shipping industry, and includes both the London marine market, underwriting hull and cargo business, and the Protection and Indemnity Clubs underwriting shipowners’ liabilities in mutual associations.

Requires all boat owners to have third party cover with a minimum £1 million indemnity on most inland waterways. The British Waterways Authority seeks evidence of insurance before issuing the boat owner’s annual licence to use its waterways.

A document issued by an insurance broker confirming that an insurance has been effected. It warrants to the client that his or her instructions have been carried out, but imposes no liability on an insurer who has not actually entered into any agreement. If the cover note is issued in anticipation of making an agreement that does not materialise the broker will be liable for breach of warranty.

In marine insurance the broker is liable to the insurer for the premium even though not collected from the insured. Consequently, the Marine Insurance Act, s.53(2), grants him a lien, i.e. the right to retain the policy until paid by the insured. The lien is valuable as no claim can be collected without production of the policy; the insured may wish to deposit the policy with his bank, or pass it to another interested party. The lien applies not only to the premium on the policy but the balance of any insurance account due to the broker. The lien has been held to apply in other classes of insurance in respect of the premium but not the balance due on any insurance account.