Machinery erection policy

A policy providing cover for the movement of machinery, erection on site and testing.

Malicious damage

An additional peril that may be added to a fire insurance policy to cover damage caused by malicious persons not acting on behalf of any political organisation. It is usually provided only in conjunction with riot and civil commotion cover and is always subject to an excess.

Malpractice insurance

A claims-made (or losses-occurring) policy or extension to a public liability insurance for those in the medical and alternative medical professions for acts of medical malpractice.

Master policy

(a) A single policy in respect of a number of persons or insurances.

(b) A policy issued in connection with a multinational insurance arrangement that defines the cover provided by the programme as a whole and acts as a difference in conditions policy or difference in limits policy for locally issued policies. See also Umbrella cover.

Material damage warranty (or proviso)

A provision in a business interruption policy that states that no claim is payable unless the damage causing the interruption is admitted under a property insurance policy.

Material fact

A fact about a risk proposed for insurance that would influence a prudent underwriter whether to accept the risk, and on what terms.

Maximum possible loss (MPL)

An estimate, usually by a surveyor, of the largest loss possible under a property insurance, assuming that all detection and protection devices, as well as the emergency services, fail. See also Estimated maximum loss.

Mechanical breakdown

(a) A form of cover provided under an engineering policy; see Breakdown.

(b) An exclusion under the own damage section of a motor policy relating to the actual breakdown; any resultant damage is covered by the policy.

Merchantable quality

An obsolete term used in the Sale of Goods Act 1979 to identify the fact that goods sold or supplied must be fit for the purpose they are intended. See Satisfactory quality.

Misrepresentation

A mis-statement of fact that may be innocent, negligent or fraudulent. The mis-statement of a material fact, if fraudulent, will invalidate the policy.

Money insurance

An all risks insurance cover for banknotes, coins, cheques and other defined items in transit, on the insured's premises or in the homes of employees. Cover is subject to a number of specific limitations for the overnight premises risk. Extensions include personal accident benefits for assaults on staff and damage to their clothing.

Money laundering

The term used to describe the process of converting the proceeds of crime into apparently legitimate assets or money. See Integration, Layering, Placement.

Moral hazard

The introduction of risk or an increased risk that arises because of the behaviour or human characteristics of a proposer or others who may be closely associated with the insurance. Indicators of such hazards may include claims or conviction records, safety standards and employment conditions. See also Physical hazard.

More specific insurance

A non-contribution clause, often used in household contents policies, which states that no claim is payable under the policy if there is another policy providing more specific cover, for example an all risks policy covering jewellery.

Motor engineer

The person (often an employee of the insurance company) appointed to inspect vehicle damage on behalf of the insurer, approve repair estimates and agree write-off figures, dealing with any salvage issues.

Motor insurance

An insurance class of business, compulsory for road use in the UK and most other countries, that provides a range of different types of cover for both private and commercial vehicles and specialist insurances for those in the motor trade. Own damage cover and a range of extra benefits are available in addition to compulsory third party elements.

Multi-tenure

Property insurances that are treated as high hazard risks because of the occupation of a building by more than one tenant, typically carrying out different trades, and where the proposer does not have control of the whole fire risk.

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