A pay as you go’ pension scheme that does not acquire and build up assets to fund the pension. State pensions are unfunded.

Pension arrangement for which IR approval is not sought and under which there is no pre-funding. The employer provides benefits out of income for employees earning more than the earnings cap. See FUNDED UNAPPROVED RETIREMENT BENEFITS (FURBS).

The method of determining benefits for early leavers under the terms of the ‘preservation’ conditions of social security legislation. Retirement benefits are treated as being earned equally over the period of potential pensionable service to normal pension date.

A risk that cannot be insured because an essential condition is not present. It may: (a) lack insurable interest; (b) defy quantification; (c) entail widespread losses (e.g. war damage to property on land); (d) create excessive cost; (e) be speculative; (f) may reflect certainty rather than uncertainty; (h) be contrary to public policy.
***
An uninsurable risk is one that is literally uninsurable because loss is certain rather than possible.
***
An uninsurable risk is one which is literally uninsurable because loss is certain rather than possible.

Drivers not covered by third party insurance as required by the Road Traffic Act 1988. Their injured victims can secure compensation under the Uninsured Driver Agreement 1999. The Third Motor Insurance Directive 90/232 requires the victim to bear the first £175 of property damage, but there is no recovery for a person who knowingly enters an uninsured or stolen vehicle.

Agreement between the Motor Insurers Bureau and the government whereby the MIB compensates the victims of negligent uninsured drivers who had no insurance or only defective insurance. In the latter instance the vehicle insurer deals with the victim’s claim but has a right of recovery against the negligent motorist. See UNTRACED DRIVERS AGREEMENT.

Losses not covered by a first party insurance such as an accidental damage excess under a comprehensive car insurance and cost of hiring an alternative car. The losses may be recoverable from a negligent third party.

Business interruption clause providing that, if any standing charge is not insured, a proportionate reduction will be made in the increased cost of working part of the claim.
***
A provision in a business interruption policy that if any standing charges of a business are uninsured a proportionate reduction for a claim for increased cost of working shall be made in their respect.