Ice deviation clause

A clause in a marine cargo policy permitting a vessel to deviate to discharge cargo at the nearest accessible port if the destination port is inaccessible on account of ice.

Ice deviation risk

Insurance to pay Lx per ton of cargo discharged short of destination because of icing at the destination port or its closure due to icing.

Ice exclusion clause

A clause in a marine hull policy excluding damage caused by contact with ice during winter months.

Immediate annuity

An annuity coming into operation from the date of completion of the contract.

Immediate participation guarantee contract

A contract providing that the insured shall participate from the outset in the actual experience of a pension scheme as to mortality, expenses, interest income and profit or loss on the sale of investments.


The investment of assets in such a way that the insurer's existing business is immune to a general change of interest rates in the future.

Impact damage

Damage to fixed property by a moving object.

Impact damage agreements

Agreements whereby liability insurers agree to pay and the owners or insurers of fixed property agree to accept, a stated proportion of damage to the property caused by an insured vehicle, without regard to legal liability.

Impaired lives

Persons who suffer from some condition that may shorten their life.

Implied authority

The power of an agent to bind his principal that has not been expressly stated but that can be deduced from the principal's conduct.

Implied condition

A condition to which a policy is subject that is not expressed in the policy, the fulfilment of the condition resting with either the insured or the insurer.

Implied obligation

An obligation not expressed in a contract, to which the contract is subject.

Implied warranty

A warranty to which a policy is subject that is not expressed in the policy, the fulfilment of the warranty resting on the insured.

Importation of average

A condition in a policy whereby if a claim is covered by two policies one of which is expressed as subject to average and one not, the latter is made subject to average in like manner.

In and out policy

A policy covering stockbrokers against losses due to the infidelity of staff, dealings in forged or stolen documents, and the misappropriation of documents or money.

In camera

In private.

In force

A contract is said to be in force so long as it remains operative until it expires or is cancelled.

In transitu

In transit.

Inception date

The date on which an insurance begins to operate.

Inception date allocation

A system introduced by Lloyd's in 1995 whereby insurances are allocated to the year of account in which the risk commences, the allocation not being governed, as previously, by the date on which the policy was processed by Lloyd's Policy Signing Office.

Incidental non-marine

Insurances written by a marine underwriter as an adjunct to his marine insurance account.

Income benefit

A benefit by way of regular payments to the dependants of a deceased person under a life assurance, or to the insured during a period of disablement under a health insurance.

Income bond

A contract combining life assurance and an annuity under which an income is payable for a term certain.

Income tax relief

See Life Assurance Premium Relief.

Incontestability clause

Same as Indisputability clause.

Increase in cost of working

Under a business interruption policy the occurrence of the event insured against may cause the insured to incur increases in his costs in endeavouring to maintain production. The insurance provides some cover in this respect.

Increased risk

An insurance that presents some unfavourable feature.

Increased value and excess liabilities policy

Same as Excess value policy.

Increasing bonus

A bonus under a with-profits life assurance at a rate increasing with the length of time the policy has run.

Increasing claim payments

A permanent health insurance may provide for the benefits when they become payable to increase annually by a stated percentage as a measure of compensation for inflation.

Incurred but not reported (I.B.N.R.)

At the end of a period of account a reserve in respect of property, liability and pecuniary insurances to cover the expected cost of losses that have occurred but have not yet been reported to the insurer or reinsurer.

Incurred loss ratio

The percentage of losses incurred to premiums earned.

Incurred losses

Losses arising during a period of insurance whether settled or not.

Indemnification aliunde

The liability of insurers under a contract of indemnity is to make good the insured's loss. If the insured's loss is made good aliunde (from another source) the insurers are entitled to credit accordingly for any sum received.


The making good of a loss by means of a monetary payment / An agreement by one party to make good a loss sustained by the other party.

Indemnity period

In business interruption insurance the period from the date of an occurrence giving rise to a claim in respect of which losses are payable by the insurer in accordance with the terms of the insurance.

Indemnity terms

It is common for an intermediary introducing a life insurance to receive commission in advance on the undertaking to refund it if premiums are not paid.


A deed to which there is more than one party.

Independent company

Same as Non-tariff company.

Independent liability method

A method of apportioning a claim covered by two or more insurances. The liability of each insurer is calculated independently and each insurer contributes in proportion to the amount of his liability thus ascertained.

Independent range

Insurance policies are said to be of independent range when one covers property of certain classes or at certain situations and the other covers classes of property or situations which are not identical. If there is some overlap in cover the respective insurers must contribute in the settlement of a loss.

Independent risk unit

Part of the subject-matter of an insurance which is separate from and independent of other parts.

Index clause

A clause in a contract of insurance or reinsurance which links premiums and sums insured or limits of indemnity to an index of prices as a measure of combating the effects of inflation.

Indexed annuity

An annuity under which the calculation of the annual payment due is made by reference to a cost-of-living index.


A broker who has obtained a quotation from a leading underwriter for a line of an insurance is said to indicate a rate when he informs his client of this.

Indirect business

Insurance received by an insurer through a broker or agent entitled to commission, or through another insurer, as distinct from business transacted directly between the insurer and the insured.

Indisputability clause

A clause in a policy providing that after a stated period the insurer may not dispute the validity of the policy in the absence of fraud on the part of the insured, thus relieving the insured of the consequences of any innocent non-disclosure or misrepresentation.

Individual life assurance

Life assurance effected by individuals as distinct from group life assurance.

Indivisibility of premiums

A principle whereby when a premium has been agreed for a period it is payable in full even though the insurer has covered the risk for only a part of the period.

Industrial all risks insurance

Insurance of industrial property against loss or damage where the perils insured against are not specified but exceptions are.

Industrial fire insurance

Fire insurance of business property as distinct from the insurance of the property of private individuals.

Industrial injuries insurance

A form of social insurance providing benefits for employed persons for injuries arising out of and in the course of their employment.

Industrial life assurance

Life assurance the premiums on which are paid to collectors at intervals of less than two months.

Industrial property rights insurance

Insurance against the infringement or alleged infringement of patent, design, trademark, trade name or copyright, or actions for passing off, in respect of goods sold or supplied.

Inevitable accident

Where a defendant seeks to escape liability for the consequences of an accident on the ground that it was inevitable, it must be shown that he did (or omitted to do) nothing that a person exercising ordinary care, caution and skill would not have done, (or would not have left undone, as the case may be).

Inflation factor

An adjustment of premium to allow for a rise in costs due to inflation.



Infringement (of industrial property rights) insurance

Insurance against the financial consequences of inadvertently infringing rights such as patents, trademarks or copyright.

Ingestion damage

Damage caused by foreign bodies being drawn into the air intake of the turbine engine of an aircraft.

Inherent vice

A quality in goods that produces damage to them by its own action without the assistance of an outside agency.

Initial period

In business interruption insurance a period of so many weeks after the occurrence of material damage during which the insured is protected against loss in relation to wages to the full extent of his wage roll.

Initial premium

The premium charged at the outset of insurance subject in some cases to subsequent adjustment.


The initialling of a slip by an underwriter binds him to accept his line of the insurance. Similarly he signifies his acceptance of subsequent amendments or agreements by initialling a document.


An order of the court to do, or not to do, some specified act.

Inland marine insurance

A category of marine insurance relating to inland water and inland transit risks. In U.S. practice it includes the insurance of movables such as jewellery and personal effects and instrumentalities of transport such as bridges.

Innkeeper's liability

In English law an innkeeper is liable for the safety of the property of his guests. The Hotel Proprietors Act 1956 describes and circumscribes the liability.

Inside staff

The employees of an insurance company who work within its offices and who are not wholly or mainly engaged in making outside calls.

Insolvency clause

A clause providing that the reinsurer shall be liable for his share of a loss even though the insurer has become insolvent.

Inspection clause

A clause in a reinsurance treaty entitling the reinsurer to inspect the books of the ceding insurer.


An official of an insurance company concerned with the selling and servicing of insurances.

Instalment premium

In life assurance a premium that is expressed as annual but is met by a series of payments at more frequent intervals, the total being payable even if death occurs while one or more instalments are outstanding.

Instant certificates

Provisional certificates provided by Lloyd's for the use of the insured in connection with open covers and the like pending the availability of printed certificates.

Institute Agent

An agent appointed by the Institute of London Underwriters and authorised to settle claims payable abroad.

Institute Clauses

Clauses approved by a committee of company and Lloyd's underwriters as standard clauses for use in the marine insurance market, and published by the Institute of London Underwriters.

Institute Company

An insurance company transacting marine insurance that is a member of the Institute of London Underwriters.

Institute Warranties

A set of standard warranties issued by the Institute of London Underwriters for inclusion in marine hull policies. The warranties deal mainly with navigational matters.


Able to be insured against. In principle one may insure against the financial consequences of any event where it is a matter of fortuity whether the event will occur or when it will occur. One cannot insure against the consequences of one's deliberate acts or where insurance would be against public policy. In practice a risk may be uninsurable where: (a) the prospect of widespread loss is too great for the insurer to accept, e.g., war damage to property on land; (b) the risk is entrepreneurial, e.g., the risk of a change of fashion rendering stock unsaleable; (c) the risk is too great or unquantifiable.

Insurable interest

Insurance requires for its validity that the insured shall be so related to the subject-matter of the insurance that he will benefit from its survival or will suffer from loss or damage to it or may incur liability in respect of it. In the absence of such an interest, known as an insurable interest, the insurance will be invalid. Everyone has an insurable interest in his own life and spouses are deemed to have such an interest in the lives of each other.


Insurance is a contract whereby one party, called the insurer, in return for a consideration, called the premium, undertakes to pay to the other party, called the insured, a sum of money or its equivalent in kind upon the happening of a specified event that is contrary to the interest of the insured.

Insurance agent

A representative of an insurer, whether an employee or an independent contractor, who negotiates, effects, and may service, contracts of insurance.

Insurance broker

One who advises persons on their insurance needs and negotiates insurances on their behalf with insurers, exercising professional care and skill in so doing. See Insurance Brokers (Registration) Act 1977.

Insurance Brokers (Registration) Act 1977

This Act provides for the setting up of an Insurance Brokers Registration Council to register persons and firms who use the description "insurance broker", "reinsurance broker" etc, and to set professional standards for them.

Insurance certificate

A document evidencing the fact of insurance where it is convenient to have such evidence separate from the policy, e.g. for issue to a person covered under a group policy;

Insurance Ombudsman Bureau

An independent bureau, financed by insurance companies who have agreed that its head shall investigate and, if required, adjudicate on, complaints by private policyholders against insurers who are members of the scheme.


Nineteenth century term for one who obtains an insurance.


To grant an insurance / To obtain an insurance.


The person covered by a policy of insurance.

Insured scheme

A pension scheme where pensions are provided by an insurance company.


The party to a contract of insurance who is liable to pay claims arising under it.


An organised and violent uprising within a country, the main purpose of which is to overthrow or supplant that country's government.


The process of dovetailing a private pension scheme with the state scheme.

Intentional self-injury

Intentional self-injury is commonly excluded from personal accident insurances.

Inter se

Between themselves.

Inter vivos

Between living persons.

Interest clause

A clause in a liability reinsurance treaty providing that where interest is added to a claimant's damages it is payable by insurers and reinsurers in proportion to their respective shares of the claim.

Interest or no interest

Phrase at one time used in a marine insurance policy where it was doubtful whether the insured had an insurable interest (q.v.). By the Marine Insurance Act 1906, s.4, a policy made with these words is deemed to be a gaming or wagering contract and is void.

Interest profit

That part of the surplus of a life assurance company that is attributable to the interest earned exceeding the rate of interest assumed at a previous valuation.

Interim bonus

A bonus on a life assurance policy at a rate applying until the next regular declaration of bonus.

Interim documents

Documents describing in broad outline a pension scheme for which formal documents are in course of preparation.

Interim trust deed

A trust deed empowering the trustees to act for a limited period pending execution of a definitive trust deed (q.v.).

Interinsurance exchange

U.S. term for Reciprocal insurance (q.v.).

Interlocking clause

A clause in a reinsurance treaty with a consortium of insurers, such as a pool, whereby each reinsurer undertakes that claims will be settled even though one or more of the reinsurers becomes insolvent.


Incidental, partial or interim in the course of legal proceedings.

Intermediaries clause

A clause under a reinsurance treaty whereby a reinsurer accepts responsibility for losses arising out of the insolvency of the broker who negotiated the treaty.


An agent or broker through whom a transaction is arranged between parties.

Internal fund

A fund set up and managed by a life assurance company as part of its life fund for the benefit of the holders of linked life assurances.

Internal risks policy

A policy for a motor trader with special reference to his liability for loss or damage occurring on his premises.

International Oil Insurers

A voluntary association of insurers who have pooled their resources to write for common account a specialised class of insurance related to the oil, gas and petrochemical industries.


A legal procedure whereby if more than one person lays claim to property the party, such as the insurer, who is liable to one or the other, may ask the court to decide which.

Interruption hazard

The various features, whether inherent or extraneous, that contribute to the possibility of interference with the trading of a business in the period after damage has been caused by an insured peril.

Interruption insurance

The insurance of loss consequential on the interruption of business by an unforeseen event such as a fire or a breakdown of machinery.

Intruder alarm

An alarm that gives warning of entry to premises or some part of them.


Social security term for physical or mental disability.

Invalidity benefit

Same as Disability benefit.


A list of items of property.

Investment insurance

Insurance for an investor against loss of value of his investment through expropriation or the like.

Inwards reinsurance

Reinsurance business received from other insurers or reinsurers.

Irrespective of percentage

A term in a marine policy providing that the insurers will pay claims however small the percentage of loss so that a franchise (q.v.) will not apply.

Issue risk indemnity

An indemnity against the birth of a child where the effect of the birth is to defeat or prejudice a reversionary interest.

Issued capital

The nominal value of the shares issued by a company, whether or not all the shares have been paid up.

Janson clause

A clause applying an excess (q.v.) to a marine insurance policy.

Jeweller's block policy

A policy covering a jeweller's stock and goods entrusted to him against all risks, with certain exceptions.

Joint and several

If an obligation on several persons is joint and several each of the persons is liable for the whole and one or all may be sued.

Joint Cargo Committee

A committee of Lloyd's and insurance company underwriters which discusses problems relating to marine cargo insurance and makes recommendations to the market.

Joint Hull Committee

A committee of Lloyd's and insurance company underwriters which discusses problems relating to marine hull insurance and makes recommendations on rating or conditions to the market.

Joint Hull Returns Bureau

A bureau which approves applications by shipowners for returns of premiums as when a ship is laid up.

Joint hull survey

A survey of a ship carried out jointly by a surveyor on behalf of the insurer and a surveyor on behalf of the insured.

Joint Hull Understandings

A set of understandings formulated by the Joint Hull Committee (q.v.) and recommended to underwriters for adoption in the interest of having some uniformity in market practice, e.g., when considering the adjustment of renewal premium rates.

Joint insured clause

A clause in a policy which makes it clear that two or more persons are insured by the policy.

Joint life and survivor annuity

An annuity payable during the joint lifetime of two or more persons and during the life of the survivor(s). Sometimes the rate is subject to reduction after the death of one of the annuitants.

Joint life annuity

An annuity on the lives of two or more persons but ceasing on the death of one of them.

Joint life assurance

Assurance on two or more lives that becomes payable when the first of the lives concerned dies.

Jouissance security

A security issued by a joint stock company that does not give the holder the status of a shareholder but entitles him to a share in the profits of the company or in the proceeds of a winding up, etc.

Judgement rating

Rating an insurance on a discretionary basis without dependence on a tariff or schedule of rates.

Jumbo risk

An exceptionally large risk or insurance.


The power of a court to hear and determine law suits.

Jurisdiction clause

A clause in a policy that specifies what country's courts shall have jurisdiction in the event of a dispute under the policy or, in liability insurances, that excludes liability for third party claims brought in other than domestic courts.

Keyman insurance

Insurance of a business against financial loss caused by the death or disablement of a person whose work has a material effect on the profitability of the concern.

Keys clause

Clause in a theft insurance policy stipulating that keys of safes, etc, shall not be left on premises when closed for business.

Kidnap and ransom insurance

Insurance to provide ransom for a kidnapped person.

Knock-for-knock agreement

An agreement between insurers that in the event of an accident involving their respective policyholders neither party shall seek to recover the insured cost of repairing the damage caused to the vehicle it insures from the other insurer.