under a contract. This limb of the definition does not constitute an exclusion clause. It forms an essential part of the definition. Disability insurance: TPD and income protection There are a number of key concepts which are common in these two types of policy. Qualifying period There is often a qualifying or waiting period of between one and six months: if the disability occurs within the qualifying period after commencement of the cover, or in the case of an increase in cover, after the commencement of the increase in cover, no benefit is payable. Normal or income producing duties A are those which conform to a normal rule: what is normal person’s ‘normal duties’ is something which happens as a rule compared with something which is abnormal or exceptional. The normal or usual duties or occupation should be identified at the time of the occurrence or onset of the illness or injury said to ground the right to recover under the contract. The features and incidents of the usual duties, occupation or business focusses on the nature of the activities. The life business and the insured’s ‘usual occupation’ embrace whole scope and compass of the life mode of getting his or her livelihood. insured’s A reference to income includes employment income and income from a business. In this context, the reference to an occupation is not limited to the physical functions involved in the but it includes circumstances in which the function is ‘occupation’ exercised and the environment in which the work is to be carried out. The circumstance that a contract for work has come to an end does not mean contractor’s that the life insured contractor has no occupation. Occupation Occupation is determined by considering the person's qualifications, skills and employment history. Occupation does not mean job or position. It is not limited to and can be wider than the person's specific job or position at the relevant time. The concept of is wider than or A person can have more than one ‘occupation’ ‘employment’ ‘job’. Occupation also means a The critical ‘occupation’. ‘recognised occupation’. qualification is usually excludes a loss making business and ‘gainful’. ‘Gainful’ voluntary work. A loss-making business is not ‘gainful’. An occupation must be a commercially undertaken occupation, more than a short-term job, not temporary but for a substantial or indefinite period and with some reasonable expectation of continuity: work must be remunerative, that is done for reward or ‘the
under a contract. This limb of the definition does not constitute an exclusion clause. It forms an essential part of the definition. Disability insurance: TPD and income protection There are a number of key concepts which are common in these two types of policy. Qualifying period There is often a qualifying or waiting period of between one and six months: if the disability occurs within the qualifying period after commencement of the cover, or in the case of an increase in cover, after the commencement of the increase in cover, no benefit is payable. Normal or income producing duties A person’s ‘normal duties’ are those which conform to a normal rule: what is normal is something which happens as a rule compared with something which is abnormal or exceptional. The normal or usual duties or occupation should be identified at the time of the occurrence or onset of the illness or injury said to ground the right to recover under the contract. The features and incidents of the usual duties, occupation or business focusses on the nature of the activities. The life insured’s ‘usual business and occupation’ embrace the whole scope and compass of the life insured’s mode of getting his or her livelihood. A reference to income includes employment income and income from a business. In this context, the reference to an occupation is not limited to the physical functions involved in the ‘occupation’ but it includes circumstances in which the function is exercised and the environment in which the work is to be carried out. The circumstance that a contractor’s contract for work has come to an end does not mean that the life insured contractor has no occupation. Occupation Occupation is determined by considering the person's qualifications, skills and employment history. Occupation does not mean job or position. It is not limited to and can be wider than the person's specific job or position at the relevant time. The concept of ‘occupation’ is wider than ‘employment’ or ‘job’. A person can have more than one ‘occupation’. Occupation also means a ‘recognised occupation’. The critical qualification is usually ‘gainful’. ‘Gainful’ excludes a loss making business and voluntary work. A loss-making business is not ‘gainful’. An occupation must be a commercially undertaken occupation, more than a short-term job, not temporary but for a substantial or indefinite period and with some reasonable expectation of continuity: ‘the work must be remunerative, that is done for reward or