insurance, on a group or individual basis, having a duration of at least five years and providing a benefit of a fixed amount or proportion of earnings for individuals prevented from working by sickness, accident etc.

Disability benefit payable when an injury leaves the insured working on a reduced basis as opposed to not working at all. The impairment is ongoing. The benefits are a proportion of the permanent total disablement benefit.

The exclusion from a group of lives of persons of a certain type with the result that the mortality rate of the group will differ compared to the population norm. Example: persons suffering from chronic diseases may be excluded from a group of lives acceptable for life insurance at ordinary rates of premium with the result that the insured group will have a lighter mortality rate.

Condition, other than one relating to loss of sight or limb, that attracts a lump sum benefit payable when the insured is unable to follow any occupation or gainful employment. Some policies allow the PTD benefit if the insured’s disablement prevents him from following his normal occupation not any occupation (e.g. injured ex-footballer becomes journalist).

Types of investments that pension trustees operating under trust deed rules are permitted to make. See TRUSTEE ACT 2001.

The legal name for the earnings cap.

Fire insurance method under which the insured pays a deposit in a lump sum or in instalments based on a percentage of the value of the property at risk. The insurer invests the sum paid in order to accrue interest from which claims will be paid. The insured can end the arrangement by withdrawing his deposit.
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Property Insurance (usually covering Fire and extended coverage perils) under which the insured, rather than paying periodic premiums, deposits a sum large enough that the investment earnings on this deposit can pay insured losses plus the insurer’s operating expenses. This deposit and its investment earnings, minus loss payments and Underwriting expenses, is held in the insured’s name. The insured is entitled to the balance of this account upon withdrawing from the perpetual Insurance arrangement.

the policyholder or person effecting a policy (not necessarily the same person as the life assured or the beneficiary).

The person, also called the principal, whose fidelity or undertaking is the subject of a fidelity guarantee or a bond.

An accidents only policy pays lump sum benefits following permanent total or partial disablement, dismemberment or death caused by an accident and weekly benefits for temporary total disablement. The policy is renewable annually but similar cover is available under travel policies. Hazardous pursuits (e.g. mountaineering) are excluded but can usually be bought back. A weekly/ monthly benefit can be added for total disablement through sickness – a personal accident and sickness policy. See CONTINTENTAL SCALE; INCOME PROTECTION.