Contingency cover, issued in the engineering department, in respect of a project owner’s debt obligations to banks in the event of late completion or abandonment of a project due to ‘force majeure’. It also applies to a contractor’s ‘out-of-pocket’ expenses when an overseas project is abandoned.

Sale of cargo to obtain funds needed to prosecute the voyage for the common good. Any loss is admitted as a general average sacrifice. However, this only applies when cargo can be forwarded in no other way and is preferable to remaining on board until the voyage can be completed.

Theft insurance wording to distinguish theft involving an ‘attack’ on the premises from theft without such an attack. The insurer generally covers theft following upon forcible and violent entry or followed by forcible or violent exit’. The words eliminate shoplifting or entry via an open door. The word ‘violence’ is used in its ordinary sense, meaning that an entry, where force might otherwise have been minimal, should be by a physical act characterised as violent. See FULL THEFT COVER.

A mortality table that takes account of anticipated changes in mortality. It indicates expected future mortality.

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.