1 A B C D E F G H I J K L M N O P Q R S T U V W Y Z
Ob Oc Od Of Oi On Op Or Ou Ov Ow

Obsolete buildings clause

Apply a form of reinstatement insurance to buildings over 50 years old that cannot be rebuilt in a similar manner following a claim. The insurer agrees that if there is a significant loss, they will replace the ‘old’ with a new building or purchase an alternative building as a replacement. The sum insured should reflect this cost, and partial losses can be handled on a reinstatement or indemnity basis.

Obsolete parts clause

Clause applied by motor insurers when the subject-matter insured is a car no longer in production. The clause limits the liability of the own damage insurer for the cost of replacing any unobtainable part to the maker’s last list price plus the current cost of fitting.

Occupation

Occupation means vocation, profession, trade or calling in which the insured is engaged for reward or profit. Where there is an exclusion relating to particular occupations in a health or accident policy this does not preclude the insured from carrying out acts or duties connected with the ordinary daily acts associated with occupations in general. Occasional acts do not amount to an occupation (Berliners v. Travelers Insurance Co. (1898)). See DISABILITY.

Occupational classes

A method of rating whereby the usual premium is based on the insured’s occupation. This is underwriting by occupation, and is used in personal accident insurance where as many as five occupational classes segment risks according to the degree of hazard present in the occupation. Extra-hazardous occupation calls for special consideration. Occupational underwriting lies at the heart of many insurance schemes, e.g. motor insurance for civil servants.

Occupational deafness

An industrial disease caused by noise exposure. It is an insidious disease affecting the inner ear. Many workers are exposed to this risk and years may pass before they become aware of the situation. The disease’s long-tail potential has serious implications for employers’ liability insurers. The disease is incurable but preventable and has attracted attention from the legislators through the Noise at Work Regulations 1998.

Occupational pension scheme

A scheme organised by an employer or on behalf of a group of employers to provide pension benefits for one or more employees on leaving service or on death or retirement. The scheme is run by trustees and can be contributory or non-contributory. Schemes are either defined benefit schemes or defined contribution scheme. See EXEMPT APPROVED SCHEMES.

Occupational Pensions Board (OPB)

Statutory body responsible for: issuing contracting out or appropriate scheme certificates for pension schemes that meet the necessary requirements; ensuring that guaranteed minimum pensions and protected rights are secure; and ensuring that equal access and preservation requirements are satisfied. OPB’s involvement extends to the enforcement of disclosure of information to scheme members and advising schemes as to the extent to which their rules comply with overriding legislation and advising schemes on certain rules regarding early leavers, etc.