Use of a motor vehicle outside the policy’s normal UK territorial limits. To conform with EC law, the third party insurance must meet the minimum compulsory requirements of EC states. Insurers may automatically, or by agreement, extend cover to comprehensive cover if insured on that basis in the UK. A foreign use section is included in private car and commercial vehicle policies. See GREEN CARD.

Written agreement between a pension scheme member and his employer. The former forgoes a salary increase or takes a pay cut in return for an investment by the employer of the same amount into a pension scheme.

Request by a pension scheme member that, on his death, the death benefits should be paid to the person(s) he has nominated in the request. The trustees are not obliged to follow the member’s nomination.

An accidental cause; a happening by chance. Only fortuitously caused losses are covered by insurance. A person cannot wilfully damage his property and make a claim. Neither can he claim for certainties such as wear and tear. In life insurance the fortuity is based on the date of death not its inevitability and suicide is normally excluded during the first two years.

A place where disputes are heard. It usually refers to the particular court or courts having jurisdiction in the matter.

Provides a forum for the exchange of information between lawyers acting predominately or exclusively for insurance clients (except legal expenses insurers) either practising within firms of solicitors, as barristers, or as in-house lawyers for insurers or self-insurers. FOIL is also an active lobbying body on matters concerning insurance litigation.

The court of the country in which the thing or person, the subject of the action, is situated. See FORUM SHOPPING.

The selection by a claimant of a country where he prefers his action to be heard. If a choice exists the claimant ‘shops around’ to select the country where he is most likely to win or secure the highest award. Many UK liability policies exclude US jurisdiction.

A privately arranged contract that specifies the price for a transaction in the future. It differs from ‘futures’ in that it is not standardised and is not traded on organised exchanges. Each party bears the other’s credit risk.
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An agreement for insurance to come into force at some future date.

Institute Cargo Clause 12. Where, as a result of an insured peril, the transit is terminated short of the destination, the underwriter will reimburse the insured for any extra charges incurred in unloading, storing and forwarding the goods to their destination. The clause does not apply to general average or salvage. Forwarding charges due to insolvency or financial default are excluded.