Paragraph 8

For the purpose of paragraph 7 above, the amount of claims paid, in relation to a society and a year of account, is the amount that is recorded in the society’s books as at the end of the year of account as paid by it (whether or not payment has been effected in that year) in full or partial settlement of–

less any recoverable amounts within the meaning of sub-paragraph (4) below.

The claims mentioned in sub-paragraph (1) above are claims under contracts of insurance including claims relating to business accounted for over a longer period than a year of account.

The expenses mentioned in sub-paragraph (1) above are expenses (such as, for example, legal or medical costs) which are incurred by the society, whether through employment of its own staff or otherwise, and are directly attributable to the settlement of individual claims, whether or not the individual claims in question are those mentioned in sub-paragraph (1) above.

Recoverable amounts for the purposes of sub-paragraph (1) above are amounts recoverable by the society in respect of the claims mentioned in that sub-paragraph or other claims, including amounts recoverable from third parties and amounts recoverable in respect of reinsurance ceded by the society.