A bond required by insolvency practioners under the Insolvency Practitioners Regulations (minimum £250,000) in respect of the assets to come under their control in respect of each appointment taken and which has to be detailed on monthly bordereaux submitted to the holder’s bond insurer and relevant professional body.

a policy under which the benefit is payable on a predetermined date; the description is often applied to what are strictly ‘life or endowment’ policies where benefit is payable on the earlier of death or the predetermined date.

The aggregate of heating degree days (HDDs) and cooling degree days (CDDs). Companies at risk of extremes of high and low temperatures may use a weather derivative that pays outs on HDDs and CDDs.

UK: Insurance of plant under one of four main headings: boilers and pressure plant; engine plant; electrical and mechanical plant; and lifting machinery. In addition inspection services are provided. The insurances cover selfdamage, damage to surrounding property, third party risks and engineering interruption insurance. Also, cover is provided in connection with deterioration of stock, computer risks, contractors’ plant and machinery erection and other miscellaneous insurances. The principal risks against which insurance is sought are explosion and collapse, breakdown, sudden and unforeseen physical damage, fragmentation and extraneous causes.
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Insurance protection available for construction, erection, commissioning, test run, operation, expansion etc., of a plant, machinery, boiler, equipment, civil construction, contractors plant and machinery, project, deterioration of stock, loss of profit, advance loss of profit. Provides coverage for own damage as well as to surrounding property, coverage for bodily injury to employees, to the third parties, loss of profit etc. The following are the main classes of engineering Insurance.
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Marine – cum – Erection All Risks Insurance (MCE) (Machinery cum Erection (MCE) Policy : MCE Policy provides Marine all risks cover in conjunction with Erection All Risks (Storage cum Erection) Policy. Policy will commence from the time of dispatch of the first consignment to the project site and a separate marine transit policy for imported and indigenous equipment/project material on all risks plus war and srcc terms is issued in conjunction with EAR/SCE Policy. Policy continues during the storage/erection/test operation or test loading/trial running etc and expire after completion of the project/handing over to the principals or the date specified which is earlier. One month testing is inbuilt under the policy. Also, See Also: Engineering Insurance: Contractors’ All Risks as also Engineering Insurance: Erection All Risks – EAR (Storage cum Erection – SCE)

A business interruption insurance providing an indemnity at a fixed rate per day in respect of interruptions following breakdown or unforeseen damage to installed plant and machinery or failure of the power or water supply. There are time excesses/deductibles or franchises applied to the indemnity period to avoid small losses, particularly temporary losses of services.

Detailed surveys necessary for the underwriting of highrisk situations, e.g. pollution or environmental impairment liability cover in high-risk industries. The cost is borne by the insured directly or indirectly through higher premiums.

Risk-based capital regime being introduced by the FSA for life and nonlife insurers. Calculations are based on industry-wide assumptions and individual capital guidance (ICG) given to firms based on the FSA’s view of how much capital would be adequate for individual firms to hold taking into account the firm’s risk profile and its own assessment of their own capital needs. ICG will normally be at or above ECR and although for guidance only, the firm’s not meeting the ICG figure will be expected to set out a plan to restore adequate capital. The mechanism, Individual Capital Adequacy Standards (ICAS), means that firms will hold capital more appropriate for their business and control risks and have the incentive to improve their risk management.