The total amount an individual and/or his employer may pay to the individual’s personal pension scheme every year, regardless of whether they have any earnings or how much they are. For 2003/4 the figure was £4,615. The threshold includes tax relief at basic rate. Individuals wishing to pay more have to justify their case by their age and earnings level.

Natural phenomenon in the form of a violent convulsion of the earth’s surface. The risks of earthquake and subterranean fire (fire of volcanic origin) are excluded from the standard fire policy. High risk areas are designated as ‘earthquake zones’. Earthquake cover can be obtained for either fire damage or earthquake shock damage as an additional peril. Subterranean fire can also be insured in this way. The risk is sometimes securitised as a catastrophe bond.