Name

An underwriting member of and investor in any syndicate at Lloyd's.

Named driver basis

(a) Any motor insurance policy in which driving is restricted to named persons.

(b) A basis of insuring motor trade road risks, using the number of named drivers, district and scope of cover as the main underwriting factors. See also Points basis, Trade plate basis.

National Approval Council of Security Systems (NACOSS)

An independent inspectorate for the intruder alarm industry whose approval of an intruder alarm company or system is often mandatory if systems are to be accepted by theft insurers.

Negligence

A tort defined as "the omission to do something which a reasonable person guided upon those considerations which ordinarily regulate the conduct of human affairs would do, or doing something which a prudent and reasonable person would not do" (Blyth v Birmingham Waterworks Co 1856). This tort gives rise to the great majority of claims under general liability policies.

New for old

The term used in household contents insurance to describe cover on a reinstatement basis. It may not apply to household linen and clothing (wordings vary).

Nipple leakage

An extension available under a boiler and pressure plant policy covering failure of nipple joints.

No-claim discount

A discount, often on a sliding scale, allowed on a renewal premium for successive claim free years, most commonly found in motor insurance. Also known as no-claim bonus.

Noise-induced hearing loss

A condition that has usually developed over a long period of exposure to noise. It gives rise to long-tail employer's liabilities.

Nominal damages

A small sum awarded by a court when a claimant has successfully won a court case but has not suffered any real financial hardship. See also Contemptuous damages, Damages.

Non-admitted company

An insurance company that is not licensed to transact insurance business in a particular territory.

Non-appearance insurance

A policy that pays a fixed sum insured in the event of a specified person not turning up to an event (usually a key speaker or performer).

Non-contribution clause

A clause designed to avoid paying otherwise valid claims if there is any other policy in force that covers the loss, damage or liability. If the other insurance is inadequate the policy normally acts as an excess of loss cover. If both policies contain a non-contribution clause, they have the effect of cancelling each other out. See Contribution, More specific insurance.

Non-standard construction

A term referring to buildings that do not conform to defined minimum construction standards. See Standard construction.

Notice of abandonment

In marine insurance, a formal notice of abandonment of the subject-matter of the insurance that must be given to the insurer if the insured is claiming a constructive total loss. Insurers rarely accept abandonment.

Notification clause

A claims condition that sets out in precise terms the obligations and procedures that must be followed in the event that the insured becomes aware of an incident likely to give rise to a claim.

Novation

The substitution of a new contract for an existing one.

Novus actus interveniens

See Intervening clause.

Nuisance

A tort concerned with the interference of rights, either public (affecting the general public or a section of it) or private (relating to the unlawful interference with a person's use or enjoyment of their land).

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