without legal obligation.

A claims payment made by the insurer ‘as of favour’ even though there is no legal obligation to pay. Such payments are made to preserve goodwill or where the right to refuse payment is founded only on a technicality.
***
Latin for “from favour.” A payment by an insurer to an insured for which there is no liability under the contract. In some cases an insurer may feel that there has been a mistake or a misunderstanding, and he may pay a claim even though he does not appear to be liable. See Also: “Claims types of Ex-gratia Payment.”

‘An action does not arise from a base cause. The rule prevents a criminal from recovering under a liability policy for injury or damage that otherwise would be within the policy. However, in Hardy v. Motor Insurers Bureau (1964), the claimant, through a right conferred by the Road Traffic Act, had a direct right of action against the insurer. Recoveries can also be made for mere acts of negligence even though criminal.

Benefits/contributions that are not subject to the rules applicable to protected rights benefits and contributions. They are provided by contributions to contracted out money purchase pension scheme or appropriate personal pension plan that are in excess of the level needed to secure protected rights benefits.

A collective fidelity guarantee insurance to provide additional cover on a floating basis to supplement the specified sums insured in respect of the individual employees.

Insurance to cover the excess amount of liability for general average contributions, salvage charges, sue and labour charges and three-fourths collision liability where the full amount is not covered by a hull policy. It overcomes the problem of under-insurance and the rateable reduction in an insurer’s liability consequent upon a rise in value of the hull owing to a rise in tonnage values upon general average is assessed.

An insurance arranged by tour operators in connection with US and Canada fly-drive holidays. The car company effects third party cover for limits in excess of the statutory minimum for the benefit of the car users. Nonetheless the high level of damages awarded to the victims of road accidents in North America may exceed the cover provided. The purpose of excess liability insurance is to cover the liability that is uninsured under the car company’s insurance arrangements.

A form of excess of loss ratio reinsurance. The excess point is recalculated each year as a moving average of the loss ratio experienced over an agreed number of preceding years. The ceding office agrees to bear an agreed share of any loss in excess of that average.