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Legislation
Income Tax (Trading and Other Income) Act 2005

Crossheading Health and employment insurance payments

  • Section 735 Health and employment insurance payments
  • Section 736 Health and employment risks and benefits
  • Section 737 Period for which payments may be made
  • Section 738 Risk of significant loss
  • Section 739 Conditions to be met by policies also providing other benefits
  • Section 740 Conditions to be met where policies are linked
  • Section 741 Aggregation of policies where employment ends for health reasons
  • Section 742 Meaning of “the insured”
  • Section 743 Policies for the benefit of others who contribute to premiums
  1. Health and employment insurance payments
  2. Risk of significant loss

Section 738 | Risk of significant loss

From legislation.gov.uk

(1)The condition in this section is that throughout the period that the policy has contained provisions relating to the health or employment risk those provisions have been such that any policy of insurance which only contained those provisions would involve the possibility that the insurer would make a significant loss on the premiums.

(2)In determining whether a policy would involve that possibility, any return on the investment of the premiums is to be taken into account.

(3)For this purpose reinsurance is ignored.

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