Malicious Damage
A specified peril covered under a material damage policy and is also known as vandalism.
Material Damage
A generic heading for insurance of property e.g. buildings and/or contents against damage by fire and/or other perils.
Material Damage Warranty
A standard clause within a Business Interruption insurance policy which states that there must be a valid claim under a Material Damage policy BEFORE the Business Interruption insurance becomes effective.
Material Fact
Any item of information which could influence an insurer as to whether to accept the insurance, and if so, subject to what terms. For example - with regards to a Commercial Motor policy, a material fact would be whether any of the drivers have motoring prosecutions or convictions, or whether the car has been modified to improve its performance. With regards to a business insurance policy, a material fact would be whether any of the owners of the business have a criminal record or whether they have been previously bankrupt.
Minimum Premium
Because of administration costs, insurance companies often have a minimum premium for each class of business below which they will not quote.
Money Insurance
Insurance in respect of loss of cash & other negotiable (and non-negotiable) securities. It can cover internal fraud but only if discovered & reported within a very tight timescale.
Commercial Motor Database
This database is a key tool in the fight against uninsured driving, with details of every individually insured vehicle held on it. It also assists the UK in meeting the 4th EU Commercial Motor Directive which came into effect in January 2003 & requires that details of every insured vehicle be accessible by a national information centre, in order to make cross-border claims less onerous.
Motor Insurers' Bureau
Established in 1946 to compensate the victims of negligent uninsured and untraced motorists. Every insurer underwriting compulsory Commercial Motor is obliged to be a member of the MIB and to contribute to its funding.
Motor Vehicles (Compulsory Insurance)
Regulations 2000
An amendment to the Road Traffic Act so that any mechanically propelled vehicle intended for use on roads & being used in a public place (which includes car parks) MUST hold Commercial Motor - irrespective of whether the vehicle is licensed for road use.
New for Old
See the definition of replacement as new (except for Marine Insurances which have a different definition).
No Claim Bonus
A discount reflecting no claim(s) during the previous period of insurance. Commonly misunderstood to be a No Blame Bonus!
Occupiers Liability
As defined under the Occupier's Liability Act 1957 in connection with the liability of occupiers for accidents at their premises.
Occurrence Basis
The alternative type of policy to a Claims Made basis. It covers the consequences of events which occurred during the currency of a policy even though the claims may not arrive until many years later.
Office Insurance
A term for a package insurance policy designed for office based businesses which can include many different types of insurance such as employers liability, public & products liability, property, money, loss of profits, personal accident & computers.
A specified peril covered under a material damage policy.
The maximum amount payable under the contract. It may be expressed 'per accident', 'per event' or 'per annum'.
Insurance against the death of livestock, can be extended to include specified diseases e.g. foot & mouth disease.
Usually employed on behalf of an insurance company to negotiate & settle claims on their behalf.
Insurance against the financial consequences of losing liquor or entertainment licence, usually available as an option to a pub, club or hotel insurance policy.
The ship's bell of H.M.S. Lutine, wrecked in 1799 whilst carrying a cargo of gold valued at £1.4 Million. The bell hangs at Lloyds & is rung when important announcements are to be made.
