A group life and/or pension scheme that varies the benefits for members according to categories of membership. Life cover for one category might be three times income, but four times for another. Each category is carefully defined in order to ensure that there is no discrimination against individuals.

Marine clause meaning that the bailee of goods gets the benefit of any insurance policy effected by the cargo owner should an insured loss occur while the goods are in the bailee’s care. If the contract of carriage is subject to the US Carriage of Goods by Water Act, the clause is void.

Policies such as personal accident and life insurances where the amount to be paid is a pre-agreed benefit and is not based on actual losses as with indemnity contracts. Individuals are free to put their own value on life and limb; the main constraint is their ability to pay.

Non-cash benefits for employees, such as private medical insurance. The amount paid for such benefits is added to the employee’s taxable income for tax purposes. The benefits are shown on form P11D and their value counts towards the calculation of maximum Inland Revenue pension benefits.

Global insurance centre focusing on reinsurance and insurance services for large companies. It accommodates captive insurance companies. ACE and XL, set up to selfinsure the asbestosis risk of US companies, and other Bermudan companies, have become independent and grown through acquisition into large diversified global insurance and reinsurcompanies. Attractions of Bermuda: the absence of corporate or profits taxation; a flexible legal regulatory regime. ance

The union, through its 51 members from 42 countries and locations, works for international acceptance of sound principles of export credit insurance and foreign investment insurance. The union is a vital forum for the exchange of information, experience and expertise between members. Visit www.berneunion.org.uk.

Under FSMA anyone selling pensions, life insurance or investments must give clients and prospective clients ‘best advice. The financial adviser needs to be aware of the client’s circumstances and show, where possible, that the recommendations are based on an unbiased evaluation.

Rating system (developed by rating agency A.M. Best Co.) that evaluates those factors that affect the overall performance of insurance companies. Provides a weighted measure of a company’s financial strength, performance level, competitive position and ability to meets its obligations to policyholders. A qualitative and quantitative assessment.

The amount of the increase in the value of property after it has been reinstated or repaired by the insurer under a contract of indemnity. Insurers make a deduction from the claims payment as the insured’s contribution to ‘betterment’.
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A term used to express the difference in the value of property before loss and after restoration. If a 20-year roof is damaged by an insured peril and it has to be replaced in its 15th year and the restoration renews the 20-year life expectancy, the owner has obtained a 15-year betterment in the roof. Without replacement cost insurance on the roof, the owner is expected to reimburse the insurance company for the betterment entailed in the restoration. Also see Improvements and betterments.Improvement in a property which is considered to add to its value, as distinguished from repairs or replacements where the original value of the property is unchanged.