Low cost alternative to private medical insurance providing fixed cash benefits for various circumstances. For example, hospital day care is selectable in the range £12 to £48 per day up to 10 days in a year; hospital in-patient treatment ranges from £18 to £72 per day up to 91 days per year or longer in some cases. Other sections provide benefits for dental treatment, optical requirements, parental stay, acupuncture, stress counselling, etc. Exclusions: pre-existing medical conditions; war; intentional self-injury; alcohol or drug abuse; pregnancy or childbirth; mental diseases, disorders or breakdown; nuclear radiation; cosmetic surgery; treatment for infertility or pregnancy termination; AIDS; confinement for domestic reasons.

Payment of hospital treatment fees, for in-patient or outpatient treatment up to specified amounts, by an insurer who has made a third party payment to a road accident victim. The insurer’s obligation arises from the Road Traffic Act 1988, s.157, and is regardless of any admission of liability. Vehicle owners who have made deposits against third party risks or obtained securities against third party risks also have to make these payments.

Does not imply war but means acts or hostility or operations of hostility. They must be carried out by persons acting as agents of an enemy government or of an organised rebellion and not by individuals acting on their own initiative.

The sudden release of energy from an extremely rapid combustion of chemicals, gas or a cloud of dust.

Permits are incorporated into safe systems of work to minimise the fire risk. Work activities for which insurers are likely to require a hot work permit include: (a) work in hazardous environments; (b) work in confined spaces; (c) work near combustible materials, liquids and gases; (d) work on drums and tanks. The permit imposes high standards of fire protection. See BURNING WARRANTY.

An Act which defines an inn, restricts strict common law liability for the property of a guest, sets limits of liability at £50 any one article and £100 any one guest, and provides that there will be no strict liability for vehicles and their contents, or horses or other animals and their equipment or harness. The innkeeper loses the benefit of the limits of £50 and £100 if he fails to display the notice in the Schedule to the Act in a conspicuous place. Displaying the notice is not an admission that the establishment is an inn. The financial limits do not apply to property that has been deposited, or offered for deposit, for safe custody.

UK: A catastrophe excess of loss clause that treats multiple losses originating from the same cause (e.g. a hurricane), and occurring during within a specified time (typically 72 consecutive hours), as a single loss occurrence. If treated as individual losses the probability is that most would fall below the level of the deductible. The reinsured is allowed to choose the date/time for the commencement of any consecutive hours period and allowed to divide the catastrophe into two or more loss occurrences.
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REINSURANCE: A clause within a catastrophe reinsurance treaty which specifies the limited period during which claims can be aggregated for the purpose of one claim on the reinsurance contract. Commonly 24 or 72 hours.
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REINSURANCE: The colloquial term which limits the time period during which claims resulting from a given occurrence may be included as part of the loss subject to the cover. The time period is usually measured in consecutive hours and most often applies to property Reinsurance, e.g., a windstorm, conflagration, or earthquake, and less frequently in occupational disease and other aspects of casualty. Commonly 24 or 72 hours.

Highest court in the UK. It is the Supreme Court of Appeal from the Court of Appeal in England and the Superior Courts of Scotland and Northern Ireland. Appeals are heard by the Appellate Committee, which usually consists of five, or three, Law Lords. They give written judgments. Since its Practice Statement in 1966 it is not bound by its previous decisions, but they do bind the lower courts.

Life insurance is used in connection with house purchase but endowment mortgages are no longer popular. The homeowner bought a policy (sum insured equal to mortgage debt) to run parallel with the mortgage, paying interest and premiums until, on death or maturity, the policy proceeds repaid the loan. The ‘low cost endowment’ used an endowment with profit policy with a sum insured below the mortgage amount in the expectation that bonuses would accrue sufficiently to produce a full repayment. Any shortfall due to premature death was covered under a decreasing term policy. The underperformance of many endowments are leaving housebuyers with a debt at the end of the term, leading to accusations of mis-selling.

Recognised index of changes in the cost of rebuilding houses produced by Building Cost & Information Service Ltd of the Royal Institute of Chartered Surveyors. It is used by insurers of buildings under household insurances as the basis of automatic increases in the sum insured on renewal where the policy concerned is subject to indexation.