Conditions used when plant is hired out for use in the construction or civil engineering industries. To cover the risks attaching to him under CPA, the customer should insure: loss or damage to the plant on site and under his control; loss or damage to goods during loading/ unloading; continuing hire charges while the plant is unable to work following loss or damage; legal liability covering injury to the driver/operator together with third party injury/damage arising from the use of the plant. The owner is obliged to supply a competent driver but the hirer is liable for his negligence. The CPA also issues a crane hire agreement under which the customer is responsible for planning and supervision and ensuring a safe system of work.

Renewable cover for contractors who own, hire-in or hire-out plant (mobile plant, machinery and equipment) against unforeseen and accidental physical loss due to external causes; internal causes such as breakdown and wear and tear are excluded. The policy operates whilst at work or at rest or during dismantling or erection, loading, unloading or transit. For hiredin plant the cover includes legal liability for negligent breakdown and continuing hire charges. For hired-out plant the cover can be extended to indemnify the hirer. Cover can be arranged as a part of a contract works policy or, in some cases, motor insurance as special types.

Allows someone, not a party to the contract, to bring an action under it if: (a) the contract so provides or (b) it confers a benefit upon him, unless it appears that the contracting parties did not intend the term to be enforceable by him. Where the obligated party is aware that the third party has relied on the term, he may not rescind or vary the contract to the third party’s detriment. The express terms of the contract may require the third party’s consent to a variation. Insurance policies generally exclude the provisions of the Act.

1. IPRU (INS) refers to: (a) fidelity bonds, performance bonds, administration bonds, bail bonds, customs bonds, or similar contracts of guarantee effected in return for premiums; (b) tontines; (c) capital redemption contracts and pension fund management contracts when effected or carried out by a body that effects or carries out insurance contracts; (d) contracts to pay annuities on human life; (e) contracts of a kind referred to in art. 1(2)(e) of the First Life Directive; and (f) contracts of a kind referred to in art. 1(3) of the First Life Directive. 2. A contract, whereby one party, an insurer, agrees in return for a consideration from another party (the premium) to pay the insured money, or its equivalent, upon the happening of certain events. Three essentials are: the consideration (the premium), promise of payment to the insured and a specified event.

The main contributing interests to general average expenditure are ship, freight and cargo, including specie. The only exceptions are H.M. mails, crew’s effects and passengers’ personal effects not shipped under a bill of lading. Otherwise the ‘interests’ saved contribute on their net arrived values at the place where the voyage ends.

A period during which pension scheme contributions of employer and/or employee are temporarily suspended. Occurs when the pension fund is in surplus.

The maxima that IR allows for tax relief purposes when paid into approved occupational pension schemes, personal pension plans and retirement annuities. Contributions to personal pension schemes including self-invested personal pensions and retirement annuity contracts are based on a scale of age-related percentages of net relevant earnings (17.5 per cent for persons aged 35 or less up to 40 per cent for age 61 and over). Contributions to approved occupational scheme members are limited to a maximum of 15 per cent of taxable remuneration in any year regardless of age. This limit remains unchanged when contributing concurrently to a personal pension or stakeholder plan (contributions to stakeholder pensions are limited to £3,600 irrespective of age (2002/3)). Except for retirement annuity contracts, all contributions are subject to the earnings cap. There are no limits on employers’ contributions other than those required to ensure that benefits remain inside IR maxima. See CONCURRENCY.

Payment to the state pension scheme to purchase S2P rights when a member with less than two years of qualifying service, leaves a contracted out scheme. The member is then reinstated into S2P/SERPS for the whole of the contracted out period.

Any pension scheme where the member makes a contribution. Compare with non-contributory schemes.