VATINS2110 - What is insurance for the purposes of the exemption?: characteristics of insurance
»Ê¹ÚÌåÓýappre is no statutory definition of insurance for VAT purposes although guidance can be gained from previous legal decisions in which the essential nature of insurance has been considered.
»Ê¹ÚÌåÓýapp House of Lords in the case of Card Protection Plan Ltd v C & E Commrs (Case C-349/96) [1999] concluded that:
“…the essentials of an insurance transaction are� that the insurer undertakes, in return for prior payment of a premium, to provide the insured, in the event of materialisation of the risk covered, with the service agreed when the contract was concluded.�