1. The deliberate concealment of a material fact by a proposer is a fraudulent breach of the utmost good faith. 2. Limitation Act 1980, s.2, defines the term as ‘the deliberate commission of a breach of duty in circumstances in which it is unlikely to be discovered for some time. The six-year limitation period runs from time of discovery of deliberate concealment with no long-stop provision. Professional negligence errors could go undiscovered for years, but the House of Lords rejected the view that an act of negligence could amount to deliberate concealment (Cave v. Robinson Jarvis & Rolf (2002)). A contrary decision would have meant open-ended liability for negligent professionals.

The Insurance Mediation Directive requires intermediaries to give customers a statement of their demands and needs. Where advice is given, the statement must also explain the reasons for the intermediary’s recommendation. The FSA’s ICOB Rules will require a demand and needs statement from: intermediaries and insurers when selling to retail customers, whether advice is given or not; intermediaries and insurers for advised sales to commercial customers; intermediaries only for non-advised sales to commercial customers. The statement must be given in a durable medium before the contract is concluded. However, it can be given orally: where the customer requires immediate cover or the customer requests that it be given orally. For advised and non-advised sales see ADVISING AND SELLING STANDARDS.

An extension in motor traders’ road risks policies to include driving of the trader’s vehicles by prospective customers and persons undergoing driving tuition.

1. A penalty or storage charge for cargo or containers held beyond the allowed number of free days at a warehouse due to late collection. 2. The liquidated damages payable to the shipowner if the lay days allowed by the charter party for loading or discharging are exceeded. 3. Loss of hire or use of ship following collision damage. See DETENTION.
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Penalty levied against cargo that is held beyond the generally allowed number of days “free time” of storage, or against a vessel at port of loading or discharge longer than agreed.

Business interruption extension covering loss of income due to policyholder and customers being denied access to premises following damage by an insured peril to another building, e.g. fire at adjacent premises resulting in a road block. Cover for non damage’ events that deny access, e.g. crowd demonstrations, are also insurable.
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Business interruption insurance may be extended to cover loss through denial of access to the insured’s premises arising out of a peril insured against.

1. A person financially dependent on a pension scheme member (or pensioner) but the term is defined precisely in the scheme rules. The IR automatically regards spouses and children as dependants as the later of age 18 or end of full time education/training. 2. Under employment relations legislation (right to take time off) a dependant is a husband, wife, child, parent or anyone living with the employee as a part of his family. Taking time off to deal with emergencies for dependants does not breach the employment contract. 3. See FATAL ACCIDENTS ACT.

Pension scheme option that allows a member to sacrifice part of his own pension to secure a pension for a dependant after his death. The maximum allowable to a surviving spouse is two-thirds of the maximum member’s pension at the normal retirement pension based on current earnings. If death occurs after retirement the dependant receives the percentage of the deceased member’s pension as stated in the rule. See COMMUTATION FACTOR.

A defined contribution scheme also called a cash accumulation policy, used for employee groups or individual personal pensions. Contributions are held by the life office to accumulate with interest. When benefits become payable money is withdrawn to purchase annuities and pay lump sums. The life office carries no risk but acts as investor. The pre-retirement mortality risk is left to the scheme trustees who usually arrange separate cover.

Motor Vehicles (Third Party Risks) Deposit Regulations 1992 provide for a deposit of £500,000 with the Accountant General of the Supreme Court by an individual or entity as an alternative to effecting compulsory motor insurance (Road Traffic Act 1988 (as amended)).