Insured scheme meaning

The European Insurance and Occupational Pensions Authority (EIOPA) has, for years, warned about a widening ‘natural catastrophe insurance protection gap’ across the EU. This gap captures the mismatch between overall losses caused by natural disasters and the portion of those losses that are insured. According to EIOPA and the European Central Bank (ECB), from 1981 to 2023 natural catastrophes cost EU member states €900bn, with one fifth of that bill arising in just the most recent three years. Over the same period, only around a quarter of losses were insured, and that proportion is falling. We have previously outlined EIOPA’s worries about the consequences of this catastrophe gap (see here). In this article, we examine the actions that EIOPA and the ECB now formally propose to narrow the protection gap, as set out in a paper issued on 18 December 2024 (the 2024 Paper). In brief, the proposals (explained further below) rest on two pillars: a public–private, EU‑wide reinsurance facility (designed to complement existing national insurance schemes in some member...

Wood and another v Desai and another [2024] EWHC 1893 (Ch) What are the practical implications of this case? From a practical standpoint, the outcome is vexing, as it uncovers a lacuna that could have been remedied almost a hundred years ago. The judgment observes that Re Harrington Motor Co Ltd, ex p Chaplin [1928] Ch 105 was viewed by the Court of Appeal as highly unsatisfactory, prompting the Third Party (Rights Against Insurers) Act 1930, which paved the way for today’s TP(RAI)A 2010. Under that statutory scheme, had the company been insolvent at the moment the pay-out was obtained, the respondents would have been within cover and able to receive the funds (assuming they proved their claim). Here, however, the matter fell between the stools: the pay-out was made before the company qualified as a relevant person for the purposes of TP(RAI)A 2010, and only afterwards did the company tip into insolvency. Some modest legislative refinement might yet be warranted to seal this loophole. That result disadvantages...

In this issue: Coronavirus (COVID-19) business interruption insurance Cases and decisions Insurance types Premium Cases tracker 2025 case tracker Dates for your diary New and updated content Daily and weekly news alerts LexTalk®Insurance: a Lexis®Nexis community Coronavirus (COVID-19) business interruption insurance QIC Europe Ltd maintains it has no duty to indemnify the restaurant group’s owner for alleged losses arising from temporary site closures at the height of the coronavirus (COVID-19) pandemic, asserting that no instances of the disease occurred ‘within the immediate vicinity’ of the insured locations. See: QIC denies COVID-19 cover for Franco Manca owner. Cases and decisions AIG has largely defeated a claim linked to a failed Italian property venture (Leggett and others v American International Group UK Ltd). On 12 February 2025, the court held that the policy issued to a now-defunct Italian company does not respond to negligent advice attributed to its predecessor, relieving AIG of...

Within this Practice Note, the Road Traffic Act 1988 is abbreviated to RTA 1988. Types of insurer and MIB liability In most claims, a motor insurer will extend complete indemnity to their insured under a valid policy. This signifies that the insurer accepts a contractual responsibility to discharge all damages imposed on the defendant driver. However, where the insured breaches the policy (whether before or after the event), the insurer may, under the contract, avoid liability to the insured. In that event, the insurer owes no duty to indemnify the insured thereafter...

NOTE : This Practice Note relates to UK Rome II. The regulation applies when identifying the law governing cases where the harmful event amounting to a tort occurred on or after 1 January 2021. Formerly called Retained Rome II, from 1 January 2024 it has been retitled Assimilated Rome II—the alteration is in name alone; the regulation’s provisions are unchanged. Authorities may use either designation and, for convenience, this Practice Note refers to it as UK Rome II. For further detail on assimilated law, see Practice Note: Assimilated law. This Practice Note outlines the legal framework and the procedure by which a victim brings a claim following a road traffic accident that happens in the UK but is caused by the driver of a foreign-registered vehicle. It is highly probable that insurance cover for that vehicle will have been provided by a foreign insurer. Background The Green Card system The framework and procedure originated with the introduction of the Green Card system in the early...

Ways of providing death-in-service benefits Employers commonly provide their staff with death-in-service benefits (often referred to as 'life assurance' or 'life cover' benefits). This protection is ordinarily limited to employees (hence the term 'death in service', reflecting the label itself), although in certain situations an employer may decide to extend the benefit beyond retirement. Employers can deliver these benefits in three ways: via a dedicated trust-based arrangement that, while registered as a pension scheme for the purposes of Part 4 of the Finance Act 2004 (FA 2004), provides only death-in-service benefits—such arrangements are frequently known as 'life cover only schemes', 'death-in-service schemes' or 'standalone life assurance schemes', and no other benefits through a registered pension scheme (usually an occupational pension scheme) in which the death-in-service benefits form part of the broader benefit structure of the scheme as a whole. In this type of arrangement or model, a scheme member may receive: both death benefits (including death-in-service benefits) together with...