General Insurance


Ultimate Net Loss

The term used in excess of loss reinsurance for the total sum paid by the ceding company in settlement of its liabilities, other expenses excluding office expenses and salaries, less salvage/recoveries and all other reinsurance recoveries.

Ultimate Net Loss Clause

A Clause appearing in the excess of loss reinsurance wordings to the effect that the total sum actually paid by the Reinsured in settlement of losses including loss expenses, loss salvages and recoveries including recoveries from treaties shall insure to the benefit of the excess of loss cover.

Umbrella Liability Policy

A liability policy designed to provide liability protection above and beyond that provided by standard liability contracts.

Unfair or misleading advertisement

"Will mean and include any advertisement:

(i) That fails to clearly identify the product as insurance;

(ii) makes claims beyond the ability of the policy to deliver or beyond the reasonable expectation of performance;

(iii) describes benefits that do not match the policy provisions;

(iv) uses words or phrases in a way which hides or minimizes the costs of the hazard insured against or the risks inherent in the policy;

(v) omits to disclose or discloses insufficiently, important exclusions, limitations and conditions of the contract;

(vi) gives information in a misleading way;

(vii) illustrates future benefits on assumptions which are not realistic nor realizable in the light of the insurer's current performance;

(viii) where the benefits are not guaranteed, does not explicitly say so as prominently as the benefits are stated or says so in a manner or form that it could remain unnoticed;

(ix) implies a group or other relationship like sponsorship, affiliation or approval, that does not exist;

(x) makes unfair or incomplete comparisons with products which are not comparable or disparages competitors.

Umbrella XL

A company may have excess of loss programme for different classes. At the top of each such programme they may have arranged an Umbrella XL. This Umbrella will be for all classes. It is with variable underlying for each class equal to the range of top layer in individual class's XL programme. It works as top layer for each class and when more than one class are involved underlying of each class applies separately with a common/combined limit.

Unallocated Benefit

A policy provision providing reimbursement up to a maximum amount for the cost of all extra miscellaneous hospital services, but not specifying how much will be paid for each type of service.


Inadequate insurance coverage in respect of the insured property. This results in the claim admitted under the policy being proportionately reduced.

Underlying limit

A term used in connection with Excess of Loss treaty. The limit up to which the ceding company would bear the loss due to any one cause or event before invoking the recovery from reinsurer.


An insurer; an official in an insurance company whose main responsibility is to perform the functions of underwriting to determine whether the risk proposed for insurance is insurable and if so, at what rates, terms and conditions.


Process of examining proposal, arranging for inspection of risks, fixing of premium rates, terms and conditions of cover, rejection of uninsurable risks etc. with the main objective of ensuring spread of risks among a large group of insureds in a manner that is equitable for the insuring community and profitable for the insurer.

Underwriting Loss

Shortfall that results after payment of claims and expenses against the premium received.