A reward for not claiming under a policy. For each motoring claim-free year it means a progressive reduction on the following year’s motor insurance premium until a four/five maximum year has been reached. Maximum discounts are in the range 60-65 per cent but if a claim occurs the insured drops back down the scale. Once the insured has four years’ NCD he can pay extra for a protected no claim bonus. The bonus is then guaranteed provided there are no more than two claims in any period of five years. NCDs are available from some household insurers

When a salvor attempts to preserve property endangered by a maritime peril, he does so voluntarily and receives no payment for it unless he is successful. Any remuneration received is known as ‘salvage charges’. See also LLOYD’S FORM OF SALVAGE AGREEMENT.

An injured person receives compensation up to a specified amount without having to prove fault (e.g. negligence) against a third party. In the UK certain industrial injury benefits are payable automatically under the social security regardless of fault. In some countries road accident victims secure compensation without having to prove fault but the UK operates a fault liability system in most areas of injury/damage.

Where the risk has not been run by the insurer any premium paid by the insured must be returned to him (Tyre v. Fletcher (1777)).

Oblige an employer to prevent damage to the hearing of workers from ‘noise doses’ above the prescribed level. A risk assessment must be carried out whenever an employee is likely to be exposed to this risk.

Nomination to the trustees by a pension scheme member as to the person to receive any death benefit following his death. The trustees are not obliged to follow the nomination. This is also called ‘expression of wish’ or ‘form of request’ Nominations are also made by policyholders to friendly societies as to the person to be paid in the event of their death. The nomination binds the society up to a specified amount. Most life nominations come under the Married Women’s Property Act 1882.
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Nomination is a facility where in case of death of the policy holder, the funds are given to the nominee whose name is mentioned by the policyholder while enrolling for the policy. The details of the nominee required are his name, age, address and his relationship with the policyholder. This also helps to ensure that there is insurable interest. The nominee can be changed by the policyholder during the term of the policy. For example when a lady is unmarried, she can nominate her parents or siblings. When she gets married, she may retain the original nomination or may change the nomination favoring her spouse.

Liability policy clause prohibiting the insured from compromising or settling any claim or admitting liability without the written consent of the insurer. The clause is not contrary to public policy and the insurer does not have to show that he was prejudiced in order to rely on it.

An annuity under which the payments end with the final payment preceding death. No pro rata amount is paid to cover the period between that payment and the time of death.

Authorised motor insurers and employers’ liability are restricted in their ability to avoid liability under policies covering compulsorily insured liabilities. Where a claim is met solely because of the nonavoidance provisions the insurer has a right of recovery against the insured.

Separate policies covering the same property but where the overlap is not complete as one policy may be specific (insures A) and the other more general (insures A, B and C). If A is damaged contribution may arise subject to the two conditions of average.