The scheme is controlled by the Criminal Injuries Compensation Authority, which administers compensation on the basis of common law damages to the victims of violent crime. The main awards are in respect of personal injury and fatal injury. There is no award for single injuries, such as a black eye. The 2001 scheme increased the level of awards, changed the formula for multiple injuries, extended eligibility to same sex partners and improved the presentation of the Tariff of Injuries (www.cica.gov.uk).

Trigger events or reference points underlying a weather derivative where the payout depends on the critical conditions occurring on any day in the contract period. A critical day may be each day the temperature exceeds 25°C. The amount paid is based on the number of critical days occurring during the period multiplied by the tick.

Pays out a tax-free lump sum if, during the policy term, the insured is diagnosed with any of a range of serious conditions such as cancer, heart disease, strokes and multiple sclerosis. Even when diagnosed, the insured may live for some time so necessitating the need for financial protection while undergoing treatment and recuperation. The policy can stand alone or be added to a whole life, endowment or term insurance.

Yield is the interest earned on a bond, or dividend paid on shares or a fund. In the pensions industry the term critical yield refers to the investment returns needed to provide pension income for executive pension plans, final salary scheme pensions, small selfadministered schemes, income drawdown and transfer value analysis system.

Shareholders in small companies agree that on death or retirement of a shareholder the continuing shareholders have an option to purchase the outgoing shareholder’s shares. Life insurance puts money into the hands of the continuing shareholders at the relevant time to fund the purchase.

1. When two blameworthy vessels collide, liability will be apportioned between them according to their degree of fault and, following the running down clause, there will be two payments, i.e. cross liability. Admiralty law prescribes a single liability settlement, a method favourable to the receiving shipowner. 2. Where two or more jointly insured parties, (marine or non-marine) have legal rights against each other, the liability cover will respond as though a separate policy had been issued to each named insured. This is made possible by a cross liabilities or severability of interest clause.

A method used in partnership insurance whereby each partner takes out a policy on his own life for the amount required, pays the premium himself and assigns the policy to his partners in order to put the money into their hands on his death or retirement. Any gain under the policy is subject to capital gains tax.

The total of degree days occurring over the period of a weather derivative. The cumulative figure is multiplied by the amount of the tick to give the payout for the period, subject to the strike being breached but not exceeding any cap.