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HMRC internal manual

VAT Insurance

What is insurance for the Purpose of the Exemption: Uncertainty

The element of uncertainty is also identified as a distinguishing feature. If theelement of uncertainty were absent, and the premiums were still paid, the contract wouldnot be one of insurance. Instead, the payments would more closely resemble contributionsto a savings plan. (It could be argued that there is no uncertainty involved with lifeinsurance. However, the timing of claims is the uncertain factor.)